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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.
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 infrastructureServices available to businessesSocio-economic dataQuality of life data
Describe Current Situation
Economic Performance DataBusiness Vitality DataDevelopment Capacity DataEnvironmental 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?
Staffing the Program
Paid Staff Outside Consultant Elected Officials Volunteers Combination of above
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)
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.