One of the first puzzles we learn to solve as children are connect the dot pictures, where we start at the first dot and by drawing lines between them in the right order a picture emerges that we could not see at first.

Connecting the dots is an apt metaphor to illustrate the picture of Michigan’s opportunity to see the many opportunities we have by embracing a mindset of entrepreneurship and innovation in every organization.

Dot #1: The facts

Let’s start at the first dot and connect up some facts and figures:

•   Whiz kids get a lot of press, but the average age of new entrepreneurs is 40, and the highest rate of activity is people between ages 55 and 64. They are bringing a lot of experience and background to the table.

•   Entrepreneurship thrives during economic downturns. More than half of the companies on the Fortune 500 list launched during a recession or bear stock market.

•   Michigan’s economy was founded on innovation and entrepreneurship. Ford, Dow, Kellogg and Upjohn are iconic corporate identities today, but they are also the last names of four people who had an idea.

•   According to the Small Business Administration, firms of fewer than 500 employ half of the U.S. labor force. Research from the Kauffman Foundation shows that the majority of job creation now comes from firms that are less than five years old.

Dot #2: Map the ecosystem of resources

An ecosystem is the combination of components that work together to create an environment that sustains itself successfully. As Michigan’s economy evolves, we need to map and collaborate on the entrepreneurship and innovation ecosystem that creates a successful environment for all.

Connecting the dots of this complex system and making it accessible and easy to join is a core focus for Michigan’s state and regional economic development groups in 2010 and beyond. A great example of how this is being achieved is the FastTrac® LaunchPad initiative. Developed by the Kauffman Foundation, FastTrac® LaunchPad is a training program that teaches displaced workers and struggling entrepreneurs the skills and resources they need for business success.

The 10-week program is being offered through Michigan’s Small Business Technology and Development Centers. Funding from the Michigan Economic Development Corporation, and other supportive partners, is making the programs available at a greatly reduced cost.

Dot #3: The truth about risk-taking

Risk. The word has a bad rap these days. We hear the word and think “danger.” We may avoid joining the community of entrepreneurs because “it’s too risky.” In reality, it may be more dangerous not to take risks.

Successful entrepreneurs do take risks, but they succeed by researching and understanding the risk and then taking action to manage it.

We are in the midst of shifting our mindset from “entitlement” to “empowerment.” The entitlement mindset is one that is satisfied with the status quo and not rocking the boat. The empowerment mindset challenges the way things are and considers what risks may be worth taking for future growth and success.

Dot #4: Entrepreneurial DNA

It’s a common misconception that entrepreneurs are “lone wolves” who walk their own path, follow their instinct, and the ones who succeed are either lucky or brilliant. A recent Harvard Business Review article titled “The Innovator’s DNA: Five Skills of Innovators” shows that innovative and entrepreneurial leaders are distinguished by:

•   Questioning – always considering new possibilities

•   Observing – small details in the activities of customers, suppliers and competitors that they should consider adopting

•   Experimenting – systematically and relentlessly trying new things

•   Networking – connecting with many diverse people from diverse backgrounds to gain new perspectives (in fact, research from the Kauffman Foundation shows that entrepreneurs who are good networkers and use resources within the entrepreneurial ecosystem like business incubators, are 70 percent more likely to succeed)

•   Associating – connecting seemingly unrelated questions, problems and ideas from different fields

Dot #5: Culture of innovation

Innovation and entrepreneurial thinking are not just for individuals and start-up companies. Michigan’s entrepreneurial future demands a culture of innovationn that includes organizations of every size. Successful and sustainable innovative cultures:

•   Have systems for generating, collecting and acting on individual and group ideas

•   Create a pipeline for innovation by creating diverse, cross-functional project teams

•   Celebrate and reward success based on innovative and entrepreneurial ideas

•   Embrace failure and believe there are no bad ideas

•   Treat innovation as a strategic initiative that is defined, measured and tracked

•   Explain why innovation and entrepreneurship are important to everyone

The picture revealed

With no context or connections, it’s almost impossible to turn a bunch of dots on a page into a picture. The same can be true when trying to map out a future as an entrepreneur or inspire an innovative corporate environment. But there are many people and organizations ready and eager to help you connect the dots that will allow you to draw a picture of your own bright future.

		Kapila Viges is the director of entrepreneurship and innovation, and Bob Metzger is special projects manager, both with the Michigan Economic Development Corporation.