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AN ECONOMIC DEVELOPMENT STRATEGY Business Retention & Expansion WEDA Summer Economic Development Conference – August 18, 2010 Presented by Lisa Johnson,

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Presentation on theme: "AN ECONOMIC DEVELOPMENT STRATEGY Business Retention & Expansion WEDA Summer Economic Development Conference – August 18, 2010 Presented by Lisa Johnson,"— Presentation transcript:

1 AN ECONOMIC DEVELOPMENT STRATEGY Business Retention & Expansion WEDA Summer Economic Development Conference – August 18, 2010 Presented by Lisa Johnson, Executive Director Goshen County Economic Development Corporation

2 Healthy communities have healthy businesses Business retention and expansion programs  assist small businesses to prevent relocation and  help them survive difficult times. #1 economic development activity in US.  REAL JOB GROWTH OVER TIME COMES FROM LOCAL BUSINESS EXPANSION.

3 Purpose Establish relationships Strengthen existing companies Establish early warning signs to flag at-risk businesses that require assistance Ensure that public programs meet business needs

4 Advantages Local businesses have strong community ties Less expensive than recruitment, attraction Yields more jobs Identifies and directs resources to growth companies Defines clear role for economic development organization

5 Outcomes Link expanding businesses with public programs to mitigate growing pains and regulatory issues Improved communication and partnerships Strong public image for economic development Strategic plan for improved business climate Improves infrastructure, making communities more attractive for future investment Business cluster strategies Success stories documenting company and economic growth

6 Economic Impact Average community derives 76% of new jobs and capital investment from existing business Business attraction = 15% Entrepreneurship = 9% In a rural area, the contribution of existing businesses is likely to be 86 - 90% because both business attraction and entrepreneurship will contribute less. Looking at the source of jobs in a community gives insight into the importance of business retention

7 Assessment of business climate 1. Form steering committee 2. Develop business list 3. Invite broad cross-section to serve on task force 4. Train the task force 5. Interview businesses in teams of 2 6. Address immediate needs 7. Review survey results and strategize 8. Implement projects 9. Follow-up visits

8 Task Force Members Inclusive, broad representation geographically and by sector Economic development Chamber of commerce City, county, state government Schools, college Cooperative extension service Utility companies Workforce center Nonprofit leaders Business community volunteers

9 Synchronist Survey System Provided by our friends at the Wyoming Business Council Microsoft Access system  e-Synchronist System® and Synchronist Business Information System® from Blane, Canada Ltd. Team interviews company Enter data online Generate reports with local, state info WBC pays local ED for surveys of primary industry

10 Survey design Questions designed to gather predictive data  corporation’s growth plans  community problems if any  need or desire for assistance  perception of place in the community  perception and level of awareness the company may have of the officials themselves Interview strategy leads to an understanding of  value of the company to the community  satisfaction levels  growth potential  potential risk of the firm leaving the community or downsizing

11 Improving the Business Climate S upport and services to help companies increase sales and grow in the community Finance Incentives Taxes Real estate Workforce issues Regulations Technology

12 The degree to which business retention and expansion programs are linked to other community programs such as loan funds or workforce training initiatives can have a significant impact on program effectiveness. Evaluation

13 Quantitative Measures # jobs created/retained # retained businesses Cost per job created/retained # businesses visited # businesses surveyed # at-risk businesses assisted % jobs held by local residents/low-income persons Average salary of jobs created Spinoff private investment

14 Qualitative Measures Business perceptions of local government Business perceptions of the community Relationship between business retention programs and city services available to businesses  i.e. workforce initiatives Involvement of assisted businesses in community activities

15 85% of new jobs come from Business Retention and Expansion McAllen, Texas The McAllen Economic Development Corporation has taken a new approach in recruiting new investment to our region. Since 2001, MEDC has been actively working with companies …which allows the staff to stay informed with the needs of local businesses. Due to the different obstacles and opportunities for growth among each company, the MEDC staff is able to help identify what challenges may lie ahead and are able to react to meet industry needs. Through the implementation of the BRE Program, Workforce Solutions, South Texas College, The University of Texas Pan America and the MEDC staff are working as a team to help our existing companies grow.

16 Janie Ramos Vice President of U.S. Recruitment and Business Retention and Expansion “Our economic prosperity thrives on revenues generated by local businesses. As a company grows, we understand they need more than gratitude. Our goal is to identify a company’s needs and concerns and foster expansion opportunities by tapping into potential local resources which could increase the company’s competitiveness and improve our community’s quality of life.”

17 Ralph Garcia Vice President of Business Recruitment for the McAllen Economic Development Corporation “As an economic development organization we have the responsibility to attract new investment and also take the initiative to invest in our existing business by providing them with the necessary solutions and support needed to help them grow.”

18 Eric Canada Economic development consultant, IL Blane, Canada Ltd. “Progressive communities are looking at the existing business base as a portfolio. The value of the portfolio is the sum total of the value the individual companies bring to the community. Similar to an investment portfolio, the community’s portfolio provides future security. But, insuring future security means managing the portfolio…The goal of community economic portfolio management is to better manage public resources and increase the return on investment in economic development policy and programs by maximizing the future economic value of the business base.”

19 A COMPETITIVE ADVANTAGE Business Retention & Expansion An important next step for your community

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