Growth: Growing the Economy, Growing Businesses Scott Hutcheson, Ph.D. Purdue Center for Regional Development

4 The predominant economic development sales pitch has been cheap taxescheap taxes cheap landcheap land cheap laborcheap labor cheap utilitiescheap utilities

Average number of Indiana industrial recruitment “projects” annually with a promise of at least 100 jobs from IEDC Economic Incentives and Compliance Report for July 1, 2007 – June 30, 2011

Average number of Indiana industrial recruitment “projects” annually with a promise of at least 100 jobs from IEDC Economic Incentives and Compliance Report for July 1, 2007 – June 30, 2011

Average number of Indiana industrial recruitment “projects” annually with a promise of at least 100 jobs from IEDC Economic Incentives and Compliance Report for July 1, 2007 – June 30, 2011 …and Indiana’s one of the “best” in the U.S.

Niche: Existing Business Base

Stage Four: 500+ Employees Stage Three: Employees Stage Two: Employees Stage One: 1-9 employees

Stage Four: 500+ Employees Stage Three: Employees Stage Two: Employees Stage One: 1-9 employees

Second Stage Companies employees Revenue of $750,000 to $10 million Local owned/controlled Privately-held businesses Dealing with growth issues instead of survival issues Intent to grow

Tippecanoe County Indiana 2nd Stage Firms 2012

Tippecanoe County Indiana 2nd Stage Jobs 2012

What Do Second Stage Companies Need? Information Infrastructure Connections Gibbons, C. (2010). Economic gardening. Economic Development Journal 9.3:5.

Help in articulating and realigning with their core business strategy Market intelligence & GIS to answer important questions Guidance on search engine optimization and effective use of social media Leadership & management team development to make sure people are slotted right Indiana Business Growth Network

Our Certified IBGN Team Purdue Center for Regional Development Hoosier Heartland Small Business Development Center Parrish Library of Management & Economics Erik Deckers, co-author of No Bull-&%$# Social Media

$250K with of databases & analytic tools

The IBGN Process Companies access IBGN through their LEDO, REDO, Chamber, etc. Fill out a Company Profile, sign mutual NDA Schedule call with IBGN Team Leader (1 hour) Schedule Call with IBGN Team (1hour) – Identify 4-5 growth-related questions that need answered – Team does 30 hours worth of work Information and communication occurs on a secure website Company is contacted 6 months and 12 months afterward

Examples Manufacturer needed list of potential customers that meet certain criteria including a commitment to sustainability Analytical Test Laboratory needed information about global competitors and ideas to attract more potential customers to their website

For More Information or to Connect Scott Hutcheson, Ph.D. Purdue Center for Regional Development Purdue Extension Purdue University 203 Martin Jischke Drive (mobile)