Entrepreneurs play a unique role in the new economy which is being propelled by growth by small, high-growth companies, commonly called "gazelles." Typically created and driven by entrepreneurs, gazelles are major sources of new jobs. Entrepreneurs are typically focused on assembling resources and creating new innovative products or services that deliver value and further investment and growth.

States that wish to improve their economic competitiveness in advanced technology, biotechnology, information technology, and telecommunications should develop policies that nurture entrepreneurs. In these areas, entrepreneurial development plays a prominent role. National surveys of entrepreneurs indicate that the five critical factors that state government can influence are:

• Diversity in sources of capital;
• An enabling culture;
• Strong local networks;
• Supportive infrastructure; and
• Entrepreneur-friendly government.

Entrepreneurial capacity drives the expansion of cluster growth and both move states beyond industrial recruitment. Governors and states can play a leading role in developing more entrepreneur- friendly environments by adopting policies and programs to serve the goal of business formation, survival, and growth, and by nurturing entrepreneurs and a culture of entrepreneurship.