1. Bo Beaulieu & Michael Wilcox Purdue Center for Regional Development & Extension Community Development Program Transforming Your Local and Regional Economy – Gibson County September 4, 2014

2. Special Thanks Economic Development Administration, Chicago Regional Office Kim Howard, Southwest ISBDC Our Purdue Extension Colleagues

3. Something to Ponder The literature on job creation has frequently found that most jobs are created from existing employers, yet many local economic development organizations continue to emphasize new industry recruitment. Daniel Davis The Federal Reserve Bank of St. Louis. May 2011

4. Our Focus Today Examine the economic resources and opportunities that exist in your county/region (but are often overlooked) o The stages of your local establishments o Regional competitive assets Highlight entrepreneurship as an important aspect of your economic development stategies. Identify ways you can cultivate entrepreneurship in your county & region

5. A Look at the Four Stages 1st2nd3rd4th

6. Data Source: NETS 2011, Edward Lowe, IEGC, PCRD Definition of company stages Stage 0 (self-employed) Stage 1 (2-9 employees) Stage 2 (10-99 employees) Stage 3 (100 to 499 employees) Stage 4 (500+ employees) This table is based on the National Establishment Time Series (NETS) database The definitions for stages are based on research by the Edward Lowe Foundation A firm can have more than one establishment within the same county Establishments in Gibson County : The Four Stages

7. Data Source: NETS 2011, Edward Lowe, IEGC, PCRD Top Five Sales Establishments by Company Stage, 2011

8. A Look at Your Working Labor Force

9. 9 Gibson County, IN

10. Gibson County Commute and Labor Sheds Commuting VariableCount, 2011% Share Employed in Gibson County16,561100 Employed in county but living outside10,12761.1 Employed and living in county6,43438.9 Living in Gibson County16,045100 Living in county but employed outside9,61159.9 Living and employed in county6,43440.1 Gibson County is an employment center given that larger number of workers are commuting into the county for work than are commuting outside the county for work. Net commuting (In- commuters minus out- commuters) is positive in the county with a gain of 516 commuters. Gibson County residents are commuting to only a handful of counties, mainly to Evansville metropolitan area for purposes of securing work. On the other hand, residents from several surrounding counties are commuting to Gibson County for employment purposes The footprint of Gibson County as a workplace extends well beyond the boundaries of the county. Source: OTM, LEHD, U.S. Census Bureau; PCRD 10,127 6,434 9,611

11. 11 Gibson County Commuting Gibson County as a HomeJobs Count, 2011ShareCumulative Share Gibson County, IN6,43440.1% Vanderburgh County, IN3,68122.9%63.0% Knox County, IN5113.2%66.2% Marion County, IN5043.1%69.4% Warrick County, IN4432.8%72.1% Dubois County, IN3512.2%74.3% Posey County, IN3021.9%76.2% Pike County, IN2201.4%77.6% Tippecanoe County, IN1791.1%78.7% Lake County, IN1611.0%79.7% All Other Locations3,25920.3%100.0% Gibson’s commute shed touches major metropolitan area of Indianapolis, Tippecanoe and Lake Counties (Chicago metro area) Major economic ties with Vanderburgh County (Evansville metro area) Source: OTM, LEHD, U.S. Census Bureau; PCRD Gibson County as Home

12. 12 Gibson County Workplace Gibson as a WorkplaceJobs Count, 2011ShareCumulative Share Gibson County, IN 6,43438.9% Vanderburgh County, IN 2,66516.1%54.9% Warrick County, IN 1,1577.0%61.9% Wabash County, IL 7684.6%66.6% Knox County, IN 5833.5%70.1% Pike County, IN 5573.4%73.4% Posey County, IN 4672.8%76.3% Dubois County, IN 3482.1%78.4% Daviess County, IN 2901.8%80.1% Henderson County, KY 2481.5%81.6% All Other Locations 3,04418.4%100.0% Gibson’s labor shed extends to one adjacent county in IL and KY A labor shed is a region from where a job center (Gibson County) draws its labor force. Ten counties provide around 82% of the labor force. Source: OTM, LEHD, U.S. Census Bureau; PCRD

13. Based on commuting patterns, the region includes the following counties: Wabash county in Illinois Dubois, Gibson, Knox, Pike, Posey, Vanderburgh, and Warrick counties in Indiana Henderson county in Kentucky Source: RDM, PCRD & ESRI

14. Data Source: EMSI 2013.2 & Census Economic Attributes of Gibson County Region o Trade balance (exports minus imports) is positive

15. Gibson County Region Note: Label includes cluster name, LQ 2013 and Employment 2013 Data Source: EMSI 2013.2, industry cluster definitions by PCRD

16. Gibson County Region Note: Label includes cluster name, LQ 2013 and Employment 2013 Data Source: EMSI 2013.2, industry cluster definitions by PCRD

17. P e r c e n t G r o w t h i n S p e c i a l i z a t i o n L e v e l o f S p e c i a l i z a t i o n Transforming Stars Mature Emerging Gibson County Region, Industry Cluster Analysis, 2008-13 Defense & Security Fabricated Metal Product Manufacturing Mining Manufacturing Super-Cluster o Electrical Equipment, Appliance & Component Manufacturing o Primary Metal Manufacturing Transportation & Logistics Advanced Materials Agribusiness, Food Proc. & tech Apparel & Textiles Biomedical/Biotech (Life Sciences) Chemicals & Chemical Based Prod Energy (Fossil & Renewable) Forest & Wood Products Glass & Ceramics Transportation Equip Mfg Arts, Entertainment, Recreation & Visitor Industries Business & Financial Services Computer & Electronic Product Manufacturing Education & Knowledge Creation IT & Telecommunications Machinery Manufacturing Printing & Publishing

18. Data Source: EMSI 2013.2, industry cluster definitions by PCRD Star clusters o IN average earnings; $44,298 o Gibson county region average earnings, $44,060

19. Gibson County Region, Industry Clusters, 2013 Data Source: EMSI 2013.2, industry cluster definitions by PCRD Red numbers in parenthesis are negatives Cluster Name2013 Jobs2013 LQ Percent Change LQ, 2008-2013 2013 EPW Competitive Effect(Shift-share), 2008-2013 Biomedical/Biotechnical (Life Sciences) 25,2311.241%$51,387 (350) Energy (Fossil & Renewable) 16,8961.5011%$72,0401,470 Manufacturing Supercluster 16,0021.82 (2%)$73,035 (548) Business & Financial Services 15,5840.47 (4%)$44,514 (1,165) Advanced Materials 15,0142.001%$74,845 (230) Chemicals & Chemical Based Products 11,6133.8113%$79,2251,154 Forest & Wood Products 9,5894.3114%$49,9561,019 Transportation & Logistics 9,1781.15 (1%)$49,155 (245) Transportation Equipment Manufacturing 8,0453.6117%$77,2581,030 Agribusiness, Food Processing & Technology 6,3721.634%$44,840128 Arts, Entertainment, Recreation & Visitor Industries 6,1660.59 (8%)$21,003 (724) Information Technology & Telecommunications 4,7000.50 (2%)$63,400 (189) Defense & Security 3,9470.4917%$46,866496 Education & Knowledge Creation 3,4780.57 (14%)$27,862 (606) Primary Metal Manufacturing 3,1355.39 (15%)$85,490 (624) Printing & Publishing 2,5920.57 (15%)$42,873 (487) Apparel & Textiles 2,0031.0318%$46,570282 Fabricated Metal Product Manufacturing 1,7890.8510%$54,638130 Glass & Ceramics 1,2662.9528%$54,603253 Machinery Manufacturing 1,2260.730%$65,569 (31) Electrical Equipment, Appliance & Component Mfg 9341.67 (51%)$67,429 (1,033) Computer & Electronic Product Manufacturing 8730.54 (2%)$43,592 (41) Mining 7060.918%$75,39937

20. Note : ** presents “Star clusters in 2012” Data Source: EMSI 2013.2, industry cluster definitions by PCRD Regional Requirements, Expenditures & Leakages, 2012

21. Strengthening Clusters through Import Substitution Seek to Identify: Industries that support the cluster Goods and services purchased from outside the region Capacity for supplying these inputs regionally Resources needed to help promote the creation, retention/expansion or attraction (recruitment) of businesses that can supply these inputs

22. Takeaways  Consider focusing on first & second stage enterprises in your county as part of your economic development efforts.  Assess the opportunities that exist at the regional level; find and build on the region’s competitive strengths  Explore ways to reduce the economic leakages associated with your “star” and “emerging” clusters

23. Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. Cultivating Entrepreneurship in Gibson County Michael Wilcox and Bo Beaulieu Extension and PCRD September 4, 2014 Presented in Princeton, IN

24. Data Source: NETS 2011, Edward Lowe, IEGC, PCRD Establishments in Gibson County Total 2,303 Stage 0 876 Stage 1 1,184 Stage 2 219 Stage 3 23 Stage 4 1 Employment Total 15,568 Stage 0 876 Stage 1 3,734 Stage 2 5,818 Stage 3 4,565 Stage 4 575 Sales ($) in 2011 Stage 0 54,565,782 Stage 1 299,961,689 Stage 2 461,615,609 Stage 3 655,906,502 Stage 4 57,209,600 Definition of company stages Stage 0 (1 employee) Stage 1 (2-9 employees) Stage 2 (10-99 employees) Stage 3 (100 to 499 employees) Stage 4 (500+ employees) This table is based on the National Establishment Time Series (NETS) database The definitions for stages are based on research by the Edward Lowe Foundation A firm can have more than one establishment within the same county Local Industry Establishments: The Five Stages

25. Data Source: NETS 2011, Edward Lowe, IEGC, PCRD Top Five Sales Establishments by Company Stage, 2011 Gibson County, Indiana Sales ($)Industry EstablishmentsNAICSEmployees Stage 0 (1 employee) 500,000Hardware stores4441301 500,000General farms, primarily crop1119981 300,000Television repair shop8112111 300,000Single-family housing construction2361151 296,400Pipelines, nec4869901 Stage 1 (2-9 employees) 8,276,000Fertilizer and fertilizer materials4249108 6,000,000Grain elevators4245106 2,700,000Pipelines, nec4869909 2,285,700Gases, liquefied petroleum (propane)4247208 2,227,500Gasoline service stations4471103 Stage 2 (10-99 employees) 23,375,300Electric services221160 20,000,000Supermarkets, independent45311080 16,875,000Bowl covers, plastics32619950 13,235,300Automobiles, new and used44111030 9,739,700Electric services221125 Stage 3 (100 to 499 employees) 136,356,100Electric services2211350 126,000,000Distribution, electric power221122360 51,873,691General medical and surgical hospitals622110260 50,000,000Motors, electric335312250 43,740,000Department stores, discount452112225 Stage 4 (500 + employees) 57209600Seats, automobile336360 575

26. Data Source: EMSI, 2014 - Self-Employed - EMSI 2013.3 Class of Worker Self-employment in Gibson County, 2007-2012 NAICS Code Description 2007 Jobs 2012 Jobs % Change 2013 Avg. Earnings Per Job 11Agriculture, Forestry, Fishing and Hunting1912005%$23,080 23Construction145118 (19%)$18,616 31Manufacturing<10 -- 42Wholesale Trade111864%$16,042 44Retail Trade6261 (2%)$21,201 48Transportation and Warehousing39403%$29,430 51Information<10 -- 52Finance and Insurance1813 (28%)$35,181 53Real Estate and Rental and Leasing2921 (28%)$18,742 54Professional, Scientific, and Technical Services5043 (14%)$34,707 56 Administrative and Support and Waste Management and Remediation Services 9383 (11%)$7,362 61Educational Services (Private)<1013--$13,700 62Health Care and Social Assistance5247 (10%)$54,534 71Arts, Entertainment, and Recreation14<10-- 72Accommodation and Food Services17<10-- 81Other Services (except Public Administration)18386 (53%)$19,867 Total927768 (17%)$22,810

27. To assist targeted communities in Indiana as they transform their local economies through the development of key components required for entrepreneurship and small business development. Purpose

28. Three ways in which entrepreneurship plays a critical role in economic development… Entrepreneurship – the link between assets and finding new sources of competitive advantage and economic opportunity Entrepreneurs – recognize opportunity and bring together resources to turn opportunity into a viable business venture Entrepreneurial communities and leaders – understand their assets and mobilize to employ these assets through entrepreneurship development Relationships and Roles

29. Entrepreneurs and small business owners play an important role in local economic development, specifically… As Employers: creating new jobs and playing a significant role in hiring part- time workers and new workforce entrants As Tax Revenue Generators: broadening tax base, thus generating greater property and income tax revenues As Economic Supporters: buying and supplying local products and services. Income generated typically not exported out of local community Entrepreneurship as a Development Strategy

30. and… As Property Owners and Renters: leasing space from local property owners and filling vacant storefronts downtown As Providers of Economic Stability: small homegrown firms are, by definition, owned and operated by people who have a personal stake in the community and are more likely to remain As Providers of Economic Diversity: entrepreneurs diversify the mix of business types and sectors which contributes to economic resiliency Entrepreneurship as a Development Strategy (cntd)

31. Interconnectedness between rural and urban Regionalism = rural and urban linkages Systems = rural and urban resources Assets = unique rural and urban strengths and markets Ensure that urban and rural neighbors serve their region as equal partners The New Paradigm Needs to Embody Four Policy Principles

32. More entrepreneurs Increase the numbers Stronger entrepreneurs Increase the survival rate More high growth entrepreneurs Increase the number that create jobs and wealth Policy Goals

33. These policy goals translate into program goals… More entrepreneurs in the pipeline More entrepreneurs staying in their community Better informed entrepreneurs Better skilled entrepreneurs More job creating entrepreneurs Greater business productivity Program Goals

34. Entrepreneurship and Economic Development Research suggests that: Growing firms from “within” is a more cost effective means of creating profit centers, tax base and employment per job created. Small, home grown firms play a significant role in job creation in both urban and rural areas. Communities should take a balanced approach to economic development and complement recruitment, business retention and expansion activities. Your community is what brings it all together!

35. “An effective entrepreneurship development system integrates a wide range of programs and tailors products and services to meet the diverse needs of entrepreneurs. It should be comprehensive, flexible, culturally sensitive, and integrated, and should require providers to collaborate rather than operate independently or in isolation” - Dabson, 2005 An Entrepreneurial System Supportive Environment Entrepreneur Networks Training and Technical Assistance Access to Capital Youth Entrepreneurship

36. Supportive environment: creating community and civic environments that celebrate and support entrepreneurs. Be Entrepreneur-focused Create ‘No wrong door’ Celebrate entrepreneurs Component #1: Supportive Environment Supportive Environment

37. Entrepreneur Networks: facilitating opportunities for informal gatherings of entrepreneurs to share experiences and information. Facilitate, but don’t lead Networks should be “by and for” entrepreneurs Component #2: Entrepreneur Networks Entrepreneur Networks

38. Training & Technical Assistance: the creation of systems of advice, expertise and training appropriate to the needs of entrepreneurs – can be public, private, educational or nonprofit agencies. ID your community’s “coaches” Help entrepreneurs navigate the system Component #3: Training & Technical Assistance Training and Technical Assistance

39. Access to Capital: in the form most useful for the stage of business development Connect entrepreneurs to local lenders Increase the banking IQ of local entrepreneurs Increase the business IQ of local bankers Leverage regional and state funding Incentives and assets Component #4: Access to Capital Access to Capital

40. Youth Entrepreneurship: programs to excite young people in schools, community colleges and universities about the possibilities of creating their own businesses Build a pipeline of future entrepreneurs Engage young people Component #5: Youth Entrepreneurship Youth Entrepreneurship

41. Where do We go from here? Creating an Entrepreneurial System in Gibson County

42. According to Markley et al. (2005), communities that are “ready” have: Particular capacities in human, financial, and physical infrastructure A supportive business/entrepreneurial climate A strong self-image with positive citizen and community attitudes Open and creative community leadership, or leadership environment, that encourages and nurtures emerging leaders Entrepreneurial Community Readiness

43. Community Readiness Questionnaire

44. The Results

45. Awareness What is? Who are? How many? Networks? Impacts of? Organization Which? How? Collaboration Buy-in Planning What assets? Opportunity? Vision? Goals? Scope? Projects Focus Investments Incentives Implementation Impacts Evaluation Measurement Celebration Sustainability Commitment The Process

46. Let’s create a list of institutions and associations that can assist us in the creation of a regional entrepreneurial system… Who else? Who?

47. Purdue Extension Purdue Center for Regional Development Local Initiatives Support Corporation Chambers LEDOs Community foundation Utility companies Local governments Revolving loan funds United Way Producer groups Farm Bureau / Advocacy groups Elevate ventures 4H / FFA Economic Growth Council Variety of local “Boards” _____________________ Who?

48. Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. Thank you! Michael Wilcox and Bo Beaulieu wilcox16@purdue.eduwilcox16@purdue.edu and ljb@purdue.eduljb@purdue.edu September 4, 2014 Presented in Princeton, IN To Learn More about the Purdue Center for Regional Development, check our new website: https://pcrd.purdue.edu/