HTC Indiana Pilot Community Training Session February 2008 HomeTown Competitiveness

HTC IndianaPilot Community Training Session February 2008

HomeTown HomeTown CompetitivenessCompetitiveness

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Strategic Strategic PartnershipPartnership

Heartland Center for Leadership Development

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HomeTown HomeTown CompetitiveneCompetitivene

ssssFramework

for Effectiveand Sustainable

RuralCommunity and

EconomicDevelopment

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HomeTown CompetitivenessHomeTown Competitiveness

Overview

How all the pieces fit together for

community and economic growth.

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HomeTown Competitiveness is Focused on Critical Issues

Generational Wealth Transfer Historical Youth Out-Migration

Trends Loss of Farms and Small

Businesses Erosion of Leadership Capacity

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HomeTown Competitiveness

Philosophy • Locally controlled• Build upon community assets• Do not replace local capacity; all

HTC activities must add value• Build community capacity through

empowering local leadership• Convene and build partnerships• Belief in power of “Hometown”

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HTC Helps Communities Spiral Up • Philanthropy for ongoing funds

for leadership, youth, and entrepreneurship

• Cultural capital increases with pride and hope as young people return

• Youth engagement, leadership and entrepreneurship development and capturing wealth transfer creates new social, cultural and financial capital.

• Social, political and financial capital to support HTC and early assessment

• Cultural capital begins to change—We can do it!

• Bridging social capital brings outside expertise together with internal wisdom

SP

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Phase 1

Phase 2

Phase 3

Sustainability

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A National Model2004 Innovative Program Award from the

International Community Development Society

2005 HTC Awarded $2 Million Entrepreneurship Development Systems Grant from the W.K. Kellogg Foundation (one of six selected from 180+ proposals)

17 HTC Academies completed in 8 states (787 participants)

HTC providing training/technical assistance in 14 other states

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Putting All the Pieces Together…

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EntrepreneurshipEntrepreneurship

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EntrepreneurshipExpected Outcomes

• Strategy in place for increasing local entrepreneurial business development

• Increased entrepreneurial activity within the community in private and public sectors

• New jobs and wealth being created within the community

• More current businesses retained and growing

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Entrepreneurship Elements of the Strategy

• Identify and assess entrepreneurial talent within the community and region.

• Lead the development of the community’s strategy for increasing local entrepreneurial business development.

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Entrepreneurship How does it support the HTC framework?

• Business development creates jobs and new wealth in the community

• Assists in retaining existing businesses• Sustains population with manageable

growth• Creates career opportunities for youth• Entrepreneurs can provide leadership and

new ideas for the community’s development

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Case Study – Valley County Nebraska

Entrepreneurship

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Case Study – Valley County

Valley County Chronology…• 1999 – No Game Plan or Program

• 2000 – Economic Development Board - Staffing Proposed• 2001 – Tax Support Passed• 2002 – Joined HTC - Focused Development Goals - Moved Towards Entrepreneurship• 2004 – Hired a Business Coach

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Case Study – Valley County

Bottom Line Results…• 73 New Businesses

• 10 Expansions, 21 Transitions

• 332 New Full-Time Jobs

• $90 Million New Investment

• Retail Sales Up 20% vs. 18% Statewide

• Per Capita Income Up 22% vs. 9%

• Population Gain 3% (first in 70 years)

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Charitable AssetsCharitable Assets

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Charitable AssetsExpected Outcomes

• Community-based endowed assets• Greater knowledge about charitable giving tools

and resources • Grants awarded to specific activities that will

improve economic prospects for individuals and/or technical assistance and business coaching to entrepreneurs and small businesses

• Grants awarded to specific activities that will improve the likelihood that young people stay or return to their hometown

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Charitable Assets

Elements of Strategy• Build charitable endowments which are:

– A new source of capital for reinvestment– Sustainable (payout available every year)– Built locally– Controlled locally

• Begin and sustain the discussion among stakeholders

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Charitable Assets How does it support the HTC

framework?• HTC creates a better case statement to

potential donors

• Endowments provide a “Margin of Excellence” for your community

• Community philanthropy and community endowment building revive the tradition of local investment and creates a habit of giving.

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Rural Community Fundraising

• What’s been successful?EventsAnnual CampaignsCapital Campaigns

• What’s been lacking?EndowmentsEndowments for economic development

America's Wealth Transfer:A Likely Scenario

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1999 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

% o

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United States Nebraska Rural Nebraska

Rural NebraskaEstimated WealthTransfer = $94 billion

Nebraska Estimated Wealth Transfer = $258 billion

United States Estimated WealthTransfer = $41 trillion

Strategic Grant-MakingNow that you have an endowment, what difference is that going to make in the future of your hometown?

These new assets must be invested in ways to build a better future for your hometown!

Examples of Strategic Grants

• Non-Traditional Scholarships

• High-quality Affordable Day Care

• Microenterprise Loan Program

• Build Leadership with a Purpose

• Retaining and Recruiting Volunteers

• Value-added Curriculum for K-12 School

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Endowment Building in Holt County

O’Neill Community Foundation (pop. 3,733)• $50,000 challenge grant to build unrestricted

endowment• 50+ $1,000 Founding Members for HTC

endowment• $2,000,000+ expectancy for endowment to

support area-wide HTC activities• Grant Making to support entrepreneurship

training, county-wide leadership class, non-traditional scholarships and HTC coordinator

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HTC as a Case Statement

HTC helps Communities to:Start and Grow Small BusinessesProvide Better Employment OpportunitiesBuild a Larger Middle ClassProvide a Better Reason for Young People to

Live and Work in their Hometown

HTC is a Better Case to Prospective Donors

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YouthYouth

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YouthExpected Outcomes

• Increased number of young people working towards returning to their hometown

• Entrepreneurship curriculum and community-based learning available to more youths

• Stronger school-community partnerships in place to support shared education and community economic development goals

• Greater youth involvement in community service and leadership

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Youth Elements of the

strategy• Supports youths and adults working

together to create greater opportunities for young people to stay or return

• Helps young people create their own business and career opportunities

• Assists youths participating in entrepreneurship training to engage with the community and implement business plans

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Youth How do they enhance the HTC framework?

• Pool of young entrepreneurial talent for creating new businesses and transitioning ownership from retiring business owners

• Fresh ideas, energy and leadership• Youth attraction can create significant

wealth retention and new wealth creation over a lifetime

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KnoxCounty

Youth Engagement Case Study

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Thinking Outside the Box

Core group of students with adult advisors Visited each school to explain goals Requested nominations for up to 5 students Ninety 9th to11th graders attended rally Keynotes and interactive sessions 57 students signed up for specific activities Core group of students greatly expanded Adults engaging youth in positive ways

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Message: There are no limits!

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Welcome Back Home Exercise

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Thinking Outside the Box Event

Youth Chamber of Commerce

Inventors Club

Community Foundation

Leadership QuestBusiness

Project

Group Project

Individual Project

Community Focused

11th Grade Summer E-ship

Program

Nebraska Business Development Center

Community College Campuses

Host Communities

Invitation to Get Involved!

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LeadershipLeadership

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Leadership Expected Outcomes

• Increased diversity in community leadership

• Enhanced leadership knowledge and skills

• More volunteer engagement in community projects and activities

• More people willing to run for public office

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Leadership Elements of the Strategy

• Strengthen the capacity of residents to improve and sustain their community

• Provide the focus on the basic knowledge, skills and attitudes that are necessary for community leadership.

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Leadership How does it support the HTC framework?• Expands the pool of volunteers and

emerging leaders to work on HTC task forces and projects.

• Assists current and new leaders in developing their leadership skills.

• Encourages community members to participate in community planning and projects.

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Case StudyStuart-Atkinson, NE

Strengthening Local Leadership

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BackgroundStuart — Population 680

Atkinson — Population 1244

Eight Miles Apart

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Trends Include Willingness to Take Some Risks to Change Options and

Opportunities

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HomeTown Leadership

Institute Started in 2004

to Diversify and Refresh

Leadership Pool

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Participants — 27

Ages — 16 to 60

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ProgramNine 1-Day Seminars

September - May

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As a Result…60% Will Increase Volunteer Hours

59% Expect to Run for Public Office

100% Will Increase Donations

100% Report Increased Confidence about

Attracting New Residents

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Biggest Outcome:

Trust Among People of

Different Communities —

“We Can Work Together”

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Future Plans:

Build in the Four HTC

Pillars More Directly

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Expectations Include:

More People

Moving Back!