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function and will not be discussed in depth in this document, the EDC supports Orange County's efforts <br />in this area as a fundamental building block which must be in place as part of a comprehensive economic <br />development strategy. <br />Entrepreneur and Small Business Needs <br />With local business serving as the backbone of community services and quality of life measures, it is <br />critical that we continue to support these efforts. Micro - businesses generate 60% to 80% of net new jobs <br />annually over the last decade both locally and throughout the United States, yet funding and access to <br />capital continues to be a major hurdle. North Carolina had 173,409 small employers in 2006, <br />representing 98.1% of the state's employers and 48.6% of its private sector employment. Moreover, the <br />sectors of particular strength to Orange County -- health care and social assistance industry— accounted <br />for the majority of these small businesses. <br />Entrepreneurs have been widely credited with being the source of innovation and invention. However, the <br />majority of their businesses fail within five years or fewer. Many of those last fewer than two. Because <br />new businesses lack stable revenue streams and entrepreneurs are limited in resources, their needs span a <br />wide range depending on a variety of factors. Before the County can meet their needs, it must first <br />understand that not all entrepreneurs are created equal. W.K. Kellogg Entrepreneurship Development <br />Systems has defined six different types of entrepreneurs that a comprehensive system must serve. <br />• Aspiring Entrepreneurs: This class of entrepreneurs are attracted to the idea of creating enterprises, <br />and includes people of all ages. They differ from the other classes of entrepreneurs in that they may <br />or may not end up starting, growing, or developing their business and may or may not go on to create <br />multiple enterprises. Like Survival Entrepreneurs, Aspiring Entrepreneurs tend to require significant <br />hand - holding, although the survival rate of their ventures is highly unpredictable. The impact of <br />aspiring entrepreneurs in a community depends on their underlying motivation and success in <br />launching and maintaining a business. <br />• Survival Entrepreneurs: This class of entrepreneurs tend to resort to enterprise creation to <br />supplement their incomes. The number of Survival Entrepreneurs tend to rise during periods of <br />economic crisis, such as the Great Recession. Like Aspiring Entrepreneurs, Survival Entrepreneurs <br />tend to be heavy users of a broad range of assistance. Because necessity is the most frequent catalyst <br />leading to entrepreneurship, Survival Entrepreneurs frequently revert to working as employees after a <br />period of time. For those who remain self - employed, growth in terms of hiring and overall revenues <br />remain small and many of the their businesses do not last longer than the entrepreneur's working life <br />or after his/her death. <br />Lifestyle entrepreneurs: This class of entrepreneurs create enterprises in order to pursue certain <br />lifestyles or live in particular communities. Often motivated by social, ideological, or lifestyle <br />priorities, many of these enterprises either start out as or become non- profit organizations. <br />Social entrepreneurs: Although similar in nature to Lifestyle Entrepreneurs, Social Entrepreneurs <br />create and grow enterprises that are primarily for public and community purposes. Like those <br />founded by Lifestyle Entrepreneurs, it is not unusual for enterprises started by Social Entrepreneurs to <br />begin or end life as non -profit organizations. <br />• Growth entrepreneurs (gazelles): These entrepreneurs are motivated to develop and expand their <br />businesses to create jobs and wealth. Because their enterprises tend to be long- lived, lead to <br />employment of IOs to 100s of people, and provide a high rate of return for investment, Growth <br />Entrepreneurs are one of two classes of entrepreneurs heavily recruited by communities seeking to <br />expand or enhance their economies. <br />• Serial entrepreneurs: Serial Entrepreneurs go on to create several growth businesses, and because of <br />their revenue and hiring track records, they like Growh Entrepreneurs, are highly sought by <br />61Page <br />