The best way for local governments to foster economic development is to support entrepreneurship. Policymakers should focus on the small group of growth-oriented companies—often, but not always, in the technology sector—that can successfully expand. This report outlines a comprehensive approach, which we call “entrepreneurled economic development,” for working with these important companies. The goal is to create feedback loops between entrepreneurial leaders and other local decision makers and to cultivate networks that connect successful entrepreneurial leaders with future growth-oriented founders who can use their guidance to grow.

Entrepreneur-led economic development is a four-step process: 1. Identify the successful entrepreneurial businesses in the region.

2. Build networks around successful local entrepreneurs.

3. Partner with entrepreneurial leaders to address the most important needs of growing local businesses and their entrepreneurs.

4. Collect data on growing entrepreneurial businesses to track results and share findings with the community.

Each of these steps requires the involvement of decision makers in three distinct areas: policymakers, funders, and service providers. Collaboration among stakeholders is mutually enhancing, because no single type of organization can implement the policy on its own. Importantly, this work does not end after these four steps are completed. Entrepreneur-led economic development is an ongoing process.