Aligning Entrepreneurial Programs with Economic Drivers: Lessons from the South’s Economic Surge

Entrepreneurship doesn't happen in a vacuum. It is nurtured—or hindered—by the conditions of the communities where entrepreneurs live, work, and grow. For Entrepreneurial Support Organizations (ESOs), aligning entrepreneurial programs with economic drivers isn’t optional—it’s essential.

The South is offering the rest of the country a compelling example of what can happen when local systems align to support sustainable, inclusive growth. According to Visa’s May 2025 Business & Economic Insights report, eight of the 15 fastest-growing cities in the U.S. are located in Texas or Florida. Since 2020, the South’s population has surged by over 7 million people, and its real GDP has grown at an annual rate of 4.3%—outpacing the national average of 3.6%.

But what’s more important than the pace of growth is why it’s happening—and how ESOs across the country can replicate its principles in their own communities.

If you’re exploring how to adapt your ESO’s programming to better reflect your region’s growth priorities, The Founders Playground offers tools and frameworks to support that process. We’d love to share more insights. Schedule a call.

What Are Economic Drivers?

To successfully align entrepreneurial programs with economic drivers, we first need to define what those drivers are.

Economic drivers are the foundational forces that create jobs, generate wealth, and fuel sustained growth in a community or region. These may include:

• Regional anchor industries (e.g., advanced manufacturing, logistics, healthcare)

• Public infrastructure investments (like broadband or transit)

• Research universities and tech transfer ecosystems

• Demographic shifts, such as population in-migration

• Workforce development pipelines and reskilling efforts

• Tax, regulatory, and policy environments

When ESOs align with these forces, they become amplifiers of what’s already working and catalysts for what’s needed next.

How the South Got It Right

The South’s story is more than population growth—it’s a lesson in aligning systems, policies, and priorities to create a fertile environment for entrepreneurship and inclusive economic mobility.

1. Affordable Housing as Economic Infrastructure

With over half of all new residential construction in the country taking place in the South, housing affordability has been central to its economic expansion. In 2024, the median new home price in the region was $376,200—well below the national average.

For ESOs, this signals a clear connection: founders thrive when they’re not financially burdened by high living costs. Affordable housing means entrepreneurs can take more risks, invest in their ventures, and stay rooted in their communities.

2. Labor Force Growth & Skills Shift

The South added 78% of all U.S. jobs between 2019 and 2024, with many of those jobs in higher-skilled sectors such as tech, professional services, and healthcare.

This economic shift invites ESOs to go beyond basic business support and help founders align their ventures with high-growth sectors. It’s also an opportunity to build more inclusive pipelines—ensuring underrepresented entrepreneurs aren’t left out of the next wave of economic opportunity.

3. Purchasing Power & Local Demand

Even with lower average incomes, the South’s low tax burden and cost of living have unlocked greater discretionary spending. From 2022 to 2024, the South led the nation in consumer spending growth.

This matters to ESOs supporting product-based, service, or retail businesses. Strong local demand means founders have real customers close to home, and programs should help entrepreneurs understand and respond to these market dynamics.

How ESOs Can Align Entrepreneurial Programs with Economic Drivers

Whether you're in a high-growth metro or a rural community trying to retain your youth, the same principle applies: programs that align with economic drivers create deeper, longer-lasting impact. Here's how to get started:

🔍 1. Use Data to Understand Your Region

Dive into your local or regional economic development plans. Which sectors are growing? What infrastructure investments are planned? Where are the workforce gaps?

Reach out to local chambers, planning commissions, and universities to access datasets and reports that highlight your region’s drivers.

🤝 2. Build Industry-Aligned Programs

Co-create programming with local employers or anchor institutions. If your region is investing in renewable energy, create a clean-tech entrepreneur cohort. If logistics is a key industry, help entrepreneurs build solutions for supply chain optimization.

Let the economy’s real trends shape the way you structure your support.

🧭 3. Design for Place—and for Equity

Place-based strategy means starting where you are and working with what you have. That could mean prioritizing agtech in a farming region or tourism entrepreneurship in a heritage town.

Equity comes in by ensuring those most often excluded—first-gen founders, rural women, BIPOC innovators—can see themselves in these opportunities and access the support to thrive.

🔗 4. Collaborate Across Workforce & Economic Development

Foster stronger collaboration between workforce initiatives, local colleges, and entrepreneurship programs to ensure founders are not only launching businesses but also addressing real challenges in their communities and creating meaningful employment pathways. Train entrepreneurs to be both job creators and solution builders for local needs.

This alignment makes ESOs indispensable in broader regional planning efforts—and more likely to receive sustained funding.

Our team partners with ESOs to turn economic data into actionable strategies. If you’re thinking about how to deepen your ecosystem’s impact, we invite you to connect and explore what’s possible. Schedule a call.