There is a continuing need for new businesses to meet changing community needs (e.g., from growth and/or alternative sources of demand). A new business can meet these needs and bring new income and employment opportunities. These new businesses can come from firms relocating into the community or from local entrepreneurial activity. In Wisconsin, a significant source of new business development comes from entrepreneurial activity. Firms that are "home-grown" also tend to have a greater sense of community commitment. The planning questions include whether or not as much time is spent promoting local entrepreneurs as attracting new businesses from elsewhere. The inclusion of more local entrepreneurs in the discussion often leads to more locally appropriate development.

Examples of methods to encourage entrepreneurial activity include:

1. Organization of community capital resources to assist new business formation:
   a. encouragement of investment of private funds locally through formation of capital groups;
   b. encouragement of the use of secondary capital markets and public financing programs;
2. Identification of market potential for new retail, wholesale, and input-providing business;
3. Provision of individual counsel and intensive education for those interested in forming a new business; and
4. Provision of the same services to start-up businesses as is provided to businesses sought from outside the community.