- a weekly column published in the Pioneer Press

Getting one’s arms around the challenge of helping local economies in District 5 is quite a task. I have come to the conclusion that the primary problem can be summed up in the word “access.” This includes problems of distance – communication, transportation, time, cost; and problems of scale – expertise, infrastructure, services, financial capital and technology.  Last week’s Regional Economic Development Forum in Medford presented some creative strategies to help communities overcome some of these challenges.

A featured speaker at the conference was Dr. David Sampson, Assistant Secretary of Commerce for Economic Development. He stated that the only constant in economic development was change. The winners will be those communities that can adapt quickly to recognize the opportunities embedded in change.

Much of the conference was about refocusing scarce government resources for large regional, not local, benefit. There were also several small business people who talked about their frustrations in competing in a global economy. They identified the costs of labor, local environmental and land use regulations, government paperwork and foreign restrictions on trade as creating a noncompetitive global business atmosphere.  

Jacqueline Debets, Economic Development Coordinator for Humboldt County’s Prosperity Network ! Project, talked about rural challenges. She indicated that they had focused their primary efforts on developing their “base” industries. They asked these businesses to identify their greatest needs, (which included transportation and high speed communication.) They identified the best technology to meet those needs and now have a focused plan for improving business “infrastructure.” Some of the needs identified also included advocacy for policy change to overcome barriers created by government policy and regulation.

A “BusNet” was also developed.  This is a one call system for all business related questions. (This is similar to our local Siskiyou County Economic Development Council - SCEDC.) Debets also indicated how important it was to be able to provide onsite counseling and mentoring to small business in remote areas. Her project also assists organizations, like local Chambers of Commerce, to bring local businesses together to identify needs and to develop strategies. 

 Humboldt also looked at “permit streamlining.” This is not an approach to shortcut permit requirements or relax standards. Rather, it is getting multiple agencies to agree upon  what it would look like to fulfill various permit requirements and fold that into one stop permitting.

 Debets described the strategy of “clustering.”  Generally, clustering is the strengthening of relationships between industries. Local EDCs can help to link businesses of the same industry regionally to overcome problems of scale. Like or complimentary businesses can also be linked through “virtual networks” (computers) across America. Complimentary businesses can be encouraged to co-locate. Local business opportunities can be found in the need to supply local businesses and consumers with products regularly purchased from outside the area. The EDC can help to link industries to explore the cross application of technologies or the creation of entirely new industries. (This is where entrepreneurs are created.)

 Lisa Dawson, Executive Director of the Northeast Oregon Economic Development District, spoke about how their organization had interviewed “lone eagles,” (businesses that were not “place-bound”,) to determine how they made a living. This helped them to identify new ways to help these businesses with their particular needs. It would also be useful to ask our business leaders to identify why they decided to locate in District 5 and why they are successful. This information would be a wonderful touchstone for attracting and mentoring similar successes.

 I am one who is drawn to systematic approaches. There is a website created in the U.K. with a handbook and toolkit to help create local community economic development strategies for "market towns," (requires easy registration.)  http://www.countryside.gov.uk/NewEnterprise/MarketTowns/ There are also several community plans that were developed in the past with the support of SCEDC and the tribes. In addition, Don Hall of the Klamath National Forest has given some wonderful assistance to local communities in developing plans.

Economic development is not something government does. It can assist with business-friendly policies and procedures, the creation and maintenance of infrastructure, providing opportunities to learn skills, facilitate planning processes and even help with capital to start revolving loan funds. Government supports economic development. How well we support business depends a great deal on the dialogue we have with business. It all starts with the business community coming together in an organized voice and policy makers listening.