books and he'll take your calls e maims and tweets for three hours live on c-span 2.

>> now, a national governor's association forum on how states can create an entrepreneurial environment for small businesses and economic growth. wilkinson, a senior fellow at the harvard kennedy school of government and jeff weed man, procter & gamble vice president. this is about an hour and 20 minutes. >> welcome, everybody, my name is sam brownback i'm chair of the committee on economic growth, delighted to have all the governors here and other participants as well. this is going to be an outstanding forum and discussion for what we need to do to create growth and jobs in our state. governor nixon and i are leading

this. i have to draw attention to how incredible this moment is for the two us, if you'll pardon the regional rivalry. today in one hour, the last game between ku and mu will take place. this is a border rivalry that goes back 107 years, jay. we're going to whip you. he can comment as much as he wants. >> jay decided to join a real conference. >> yeah, well, we have a real discussion about that too. >> i think we have a pretty big one up there as well. we have a few teams that know how to play. and a few teams that know how to play basketball too, and a few other sports. they have decided to go another way, we're going to have a nice

rivalry game, that's why this meeting will end on time for sure. so we can make sure we watch it, i do have my jay hawk tie on, that c-span can focus on if you'd like for a good jayhawks shot. we're going to talk a lot about economic development here today, it's going to be a good topic for us, and a good hearing, it's a key one. with that, i'm going to make sure that we move forward on a good clip and get a good sense from our participants. here the governors, and the people that are going to be testifying in front this group today. i want to introduce david parkhurst, the edc committee staff, director and legislative counsel, thank you for your work in guiding the economy, appreciate that. today's session is compliments -- really compliments this morning's session governor heinaman's initiative. as we learned this morning, the design of his initiative is to provide governors and state

policy makers with policies and practical strategies. which i think is the key. this afternoon we'll explore how as governors we can lead efforts to create environmentses to help entrepreneurs this riv and achieve economic suck tess. our nation's success in the global economy starts in the states. states foster and encourage innovation, support industry sector clusters and champion linkages between private firms, academic institutions, research labs. governors can lead the way and often do in creating the entrepreneurial culture we need in america. my state, we're focused on this and what we can do to create a better business environment.

we're focusing on key economic assets and clusters that we have, implementing policies to help our businesses, best take advantage of those regional assets and strengths, facilitating relationships between our universities and private research institutions, created a new office of the repealer to focus on repealing outdated antiquated regulations. champion education and training and focusing on lowering personal income taxes to create a better environment. while traditional statutory and regulatory tools are important, technological innovation often occurs faster than government can process. this does not mean a government plays no role in creating a healthy entrepreneurial climate for suck ecess. but may help move us forward as individual states and as a country. our session today will offer us a chance to disuntil universal

lessons from successful entrepreneurs. governors and ceo's can help the states learn from entrepreneurs and others. it's something we have to do as a country. with that, i want to invite governor nixon to offer any additional comments. and then to introduce our panelists so we can get started. jay? >> thank you. thank the jayhawks for losing to us in football and basketball already this year. and for those folks on c-span, we will complete this in time, we don't want the c-span audience -- it's such a cross-over with the ncaa audience, we wouldn't want to hurt the number of people watching that game. for those you watching at home, you will have time to switch to what you really want to do, watching college basketball. missouri is known as the show me state. we are a nation that work together to create jobs and move

our economy forward. we focus on maintaining rigid fiscal discipline. we held a line of taxes, bald our budget. that gives businesses both large and small the confidence to invest in our state. we're also investing in education, college scholarships and worker training, and also making sure as far as businesses, we're working with small businesses across our state. the real drivers of job growth across our communities. loan programs specifically targeted to help small businesses move forward. also our small business credit initiative, we're investing $27 million to help industries turn their ideas into bricks, mortar and jobs. we're doing that with seven scholarship players on the university of missouri basketball team this year. effective efficient use of scholarship dollars is what it takes to deliver a winning program in the ncaa i guess.

with that, it's my job to introduce the true experts with our panel today. amy wilkinson is an entrepreneurship scholar with a joint appointment at the woodrow wilson international center and harvard university. her expertise centers on how leaders must change in order to change today's entrepreneurial age. she's writing a book forthcoming from simon and schuster, based on 250 interviews that will explain how innovation has altered traditional assumptions, and will demonstrate how to harness this change. amy happens a diverse private and public sector background. she's led a mexican art export company. amy worked for mackenzie and company as a strategic consultant the. she has public sector experience serving as a white house fellow.

amy will discuss key characteristics of high impact entrepreneurs and offer some practical policy solutions to help foster an entrepreneurial culture in our state. jeff weed man is president of the procter & gamble company. he leads p&g's technology to identify partnerships that drive innovation and create value across p&g and around the world. jeff's team manages mergers, acquisitions, joint ventures outsourcing technology and trademark licensing, and p&g's connect and open innovation efforts. jeff has also led development of the first ever comprehensive agreements, between p&g and the public university systems of ohio and michigan, to streamline how academia and business work together to drive breakthrough innovations and local business creation. his team formed several agreements with government research institutes, and

entrepreneurs around the world. jeff will talk about the p&g open innovation efforts. let's begin. amy, we look forward to your comments. >> thank you for that introducti introduction. and thank you to the governors for focusing on entrepreneurship and putting on the agenda so prominently. i would like to start with a sent imtd that is circulating among all my friends this week, it goes this week. dear optimist, pessimist and realist, while you are arguing about the glass water, i drank it, signed the opportunist. this is very much the mantra and the mind-set of entrepreneurs. i guess let me flip forward on this presentation. as mentioned this morning, and as mentioned just now, really to

create an ecosystem of entrepreneurship, you want high impact entrepreneurs. you want the groups people that will start companies, and scale companies. it's fantastic to have one and two person businesses. but in order to create jobs and change cultures at the state level certainly, you want people to scale those companies to a significant size. so the facts, the data here are that 1% of young companies, aged 3 to 5 years old really create more than 10% of net new jobs, that's an annual number. the data also show that in the last three decades in the united states that firms less than five years old have created all the net new jobs. yet in the recession, so starting about 2008 that changed. and this is worrisome. i mean, as people who lead states, this is really something to pay attention to.

because starting around 2008, start-ups are starting smaller, and they're staying smaller. and so the big question mark there is, what happens if our gdp comes back, but we're still 7 million jobs short? i mean, what happens if this everythingen doesn't create the jobs and doesn't create the innovation that we need? so really looking to high growth start-ups is an important thing to do. as mentioned, i spent the last few years doing research on this segment of population, that can scale a business over 100 million in revenue in less than five years, and so i can talk real quickly about some of the leadership characteristics that we see in that group. this is the quick aptitudes that i see, these people really find the gap. so they are spotting opportunities that other people don't see. they drive for daylight, which basically is managing speed like a nascar driver. they are orienting toward the

horizon all the time, and they're looking for the light. they fly the oodaloop. that is fast cycle iteration, it's talk eed about a lot in silicon valley. they fail wisely, and by this -- this is not a fear failure, this is a real different mentality out there, it's about placing small bets. it's about innovating through small incremental innovations, the idea is you avoid catastrophic mistakes if you set failure ratios, you may want to fail 10% of the time or 5% of the time in order to know you're pushing the envelope. network minds, this is important, especially for people in this room. what i can see across the research i've done really there are new solution sets. no one can stay in a silo. you can't be a public sector lead ironly, youen cat be an entrepreneur only a scientist

only. we'll see networked solution sets, and it's a lot more than social networking. this is people getting together and putting their brains together to figure out how to solve something. the last aptitudes i see is about gifting goods. this is small kindnesses, we live in a networked world. we are all linked together, it's little tiny small favors that can unlock an unbelievably tremendous value for a community. i'm happy to talk more about any of those characteristics, since we're here as policy makers, let's shift to what do you do to get these going in your states. this is a road map, people, places and policies. we can look at people. four statementsp of the population are going to drive the future of

entrepreneurialship work. i love this picture, this is a little bit counter intuitive in that baby boomers are the fastest growing segment of the population to create jobs. it's not who you think it is, it's people aged 55 to 64 who are really getting out there to start new companies. and the kaufmann foundation has got a lot of research on this, the average age of a first time entrepreneur in the united states is 39. that surprises people, and in fact it tilts toward a lot more people in the baby boomer age range than you would ever expect. there's 76 million people in that demographic and they truly are going to redefine retirement. they may not retire. and there are reasons for that. some of it is people are living longer, they're healthy longer. some of it is economics base, maybe they need to stay in the workforce. but we're seeing them drive a

lot of innovation and entrepreneurial growth. as leaders of states, there are certain things to think about here, how do you tap into that population? i mean, they cannot only start companies, they can be angel investors in companies. they certainly can be mentors, they can be advisers. there are certain places where they like to live, making your regions, cities, states attractive to this demographic is important. i'm from the pacific northwest. and an example has been to oregon, it's amazing how many people like to retire in bend, oregon. it really is an example of a place that could do a lot to engage this enterprising boomer segment. gen-y entrepreneurs, this is a guy giving a one-minute elevator pitch. the next generation of people coming up are really interested in being entrepreneurs, 40% of young adults aged 18 to 24 will

say they want to go start a business. and 60% of gen-y will say they'll be a serial entrepreneur. they already started a company, and they believe they will never go work for a large company. they're going to create their own job. that's encouraging, i think for the united states. the question mark here is, what do we do to educate these people to really know how to do that? so it comes right back to the education system. k through 12 education, it's also college programs. i can give you a couple that i hear all the time from entrepreneurs that are really working. so at the k through 12 level, high schools targeted toward stem education. that is something that i hear over and over and over talked about as really important, and a great preparation. there are some examples, north dakota school for science and imagine mattics.

illinois mathematics academy. those are ones that i continue to hear about as really good models for stem education at the k through 12 level. another thing i hear about it project based learning. and so this is another thing that i know it's different high schools are experimenting with it. instead of having teachers teach directly at a class of students. this idea of 12 to 20 students get together and are guided by teachers. from an entrepreneurial perspective, entrepreneurs work in groups, they work in teams. nobody starts a company completely alone. it's very different than our current education system. our current education system is testing individuals, they take individual tests. if they collaborate with anyone we call it cheating, right? in the entrepreneurial system, have you to collaborate all the

time. the idea is, how can you work together and how can you learn together? i think that's a really important thing to think about, trying to foster at every level of education. another example that i love is first robotics. i'm not sure how many people are familiar with first, but it's an additional sort of outside of the high school, junior high and high school experience with building a robot. we're talking about sports, right? and this is the sport the founder says every human being can go pro. everybody can be a pro athlete at critical thinking. so if you can think about building a robot, it teaches you math, science, engineering, it teaches you all the things that you really need to be good at for the rest of your life. as an example of supplemental learning, first robotics is something every single student should know about in every single state. shifting to the college level, there are examples it's the same

logic, working in groups, working in teams, learning through projects. there are examples at the college level, launch pad at the university of miami is doing this in an unbelievable way. so is stanford x or start x at stanford university, they're all programs at the college level that are taking student entrepreneurs and partnering them with angel investors, alumni entrepreneurs, certainly faculty, other students. they're cross collaborative. i was a stanford m.b.a. this is across the medical school, the law school, the arts academies, the design school. it's really a very interesting thing to see piloted at the university level, and any university could do this, any community college could do this.