Selecting a BR & E Model 10 Questions to Guide the process 2004 SCED Conference May 20 – 21, 2004 Hank Cothran Food and Resource Economics

What is Economic Development?  “Economic development is the process of creating wealth through the mobilization of human, financial, capital, physical and natural resources to generate marketable goods and services. The developer’s role is to influence the process for the benefit of the community.” American Economic Development Council  “Economic development is a process that influences the growth and restructuring of an economy to enhance the well-being of a community.” National Council on Urban Economic Development, Washington, D.C.

What is the Goal of Economic Development? Jobs Income Quality of life

How can you accomplish the goal? Attract Create Retain Expand

Why Engage in Business Retention and Expansion?  Every economy looses about 10 % of its jobs annually.  Studies show that up to 80 % of net new jobs come from existing businesses.  Identify concerns, problems, and opportunities for business in our communities.  Improve the overall climate for investment, employment, and competitiveness.  Prevent overlap and duplication in government's dealings with business.

TWO BR&E MODELS TRADITIONAL CONTINUOUS These two terms come from David Kraybill at Ohio State University to describe the way BRE is done throughout the nation.

“TRADITIONAL”  Developed by New Jersey Bell  Refined, expanded and popularized by Extension in WV, Ohio, Minnesota  Widely used by Extension (30 + states)  Booklets published by NERCRD  Many other “How to” manuals published (USDA, TX, WV, ND, UT, MN, etc.)  Method used to certify BRE “consultants”

“TRADITIONAL”  Adapted model used in Canada (Ontario)  Relies solely on volunteers to manage program and collect data  Relies on Extension for all other activities  Focuses on building human and social capital  Often thought of as a “rural” program  Has a 1.5 to 2 year life-span

“CONTINUOUS”  Operated by ED or Chamber offices  Involves one or more paid staff  Does not involve “volunteers” to assist paid staff  May involve partnerships with other ED organizations  Focuses on a limited number of businesses annually

“CONTINUOUS”  Targets major employers  Primary goal is to address immediate problems  Rarely results in long range BR&E ED plan  Does not attempt to build local capacity  Usually does not involve non-ED folks in the “business” of economic development

Initiating the Process 1.Who are the key actors in the community? 2.Who and how do you select as partners for economic development? 3.Does the community have a comprehensive economic development strategy that includes BR&E as a vital component ?

Initiating the Process 4.What is the community’s economic base? 5.What is the proposed or actual service area? Community size Geographic area

Identify key actors and potential partners  What is the scope of your program?  What is the proposed role of the partner?  What can the partner bring to the table? Personnel Financial support  Does the partner share the community vision?  Is the partner willing to work collaboratively?

Do you have a Comprehensive Economic Development Plan?  YES. You are ready to move forward.  NO. You need to ask and answer: 1.Where are we now? 2.Where do we want to be? 3.How do we get there?

Where is the community now?  Prepare a community profile.  Develop background information on the current economic situation.  Ensure broad community involvement in planning.

Develop a Community Profile  Available infrastructure  Services available to businesses  Socio-economic data  Quality of life data

Describe Current Situation  Economic Performance Data  Business Vitality Data  Development Capacity Data  Environmental Health Data International City/County Management Association Harvesting Hometown Jobs, p. 18.

Current Local Situation  Geography  Natural resources and environment  Population  Labor force  Educational/technical resources  Infrastructure  Housing availability  Commute to work  Employment by sector Growth sectors Declining sectors  Community strengths and weaknesses?  What is driving the local economy?  Where is it headed?

Current National Situation  Employment by Sector Growing Declining  Long-term economic forecast  Opportunities and threats  Population migration trends  What national trends and forces impact the local economy?  What is driving the national economy?  Where is it headed?

Where Do We Want to Be?  What are the future infrastructure plans?  Develop a vision for the future. (Where do you want to be in 10 to 20 years?)  Develop an action plan (including specific projects to implement) to achieve the vision.  Develop benchmarks and an evaluation plan

Implementing the Program 6.Where will the program be housed? 7.How will the program be staffed? 8.How will the program be funded? 9.What services will be offered? 10.What external sources of business assistance exist and where are they?

Housing the Program  Public  Private  Partnership

Staffing the Program  Paid Staff  Outside Consultant  Elected Officials  Volunteers  Combination of above

Funding the Program  Public funds  Private funding  Combination

Programs and Services to be Offered  Financial assistance  Workforce development  Technical assistance  General training  Specialized training  Workshops  Business appreciation events  Business roundtables  Industry research  Business-to-business links  Other

External Sources of Business Assistance?  Public schools  Vocational school  Community College  University  Workforce Board  Local agencies  Regional agencies  State agencies  Federal agencies  Financial institutions  Other private organizations SCORE _________________

Establishing a Business Retention and Expansion Program Have you determined the programs and services you need to and can offer existing businesses? Have you identified sources of technical, educational and financial assistance? Does the community have a “vision” for economic development that includes retention and expansion as a vital (and equal) component? Does the community have the capacity to implement the program?

Determining Community Capacity  Is the community ready?  If not: What needs to be done to build capacity?

What’s the Bottom Line? The form that works best … is a function of many factors, including community size, economic circumstances, local development objectives, and the level of commitment of public and private sectors to economic improvement.” Alan Gregerman (Research Director, CUED)

Questions?

Suggested Reading What is Economic Development? A Primer, National Council on Economic Development, Washington, D.C. Harvesting Hometown Jobs The New Small Town Guide to Economic Development (1997) National Center for Small Communities, Washington, D.C. Business Attraction and Retention: Local Economic Development Efforts (1996) Kotval, Mullin & Payne, International City/County Management Association, Washington, D.C. Economic Development: Strategies for State and Local Practice (2003) Koven & Lyons, International City/County Management Association, Washington, D.C.