Community Vitality: This seems to be the season
for economic development. I recently attended a conference on Community Vitality sponsored
by the Ford Family Foundation. http://www.tfff.org/ Keynote speaker Maury Forman, reminded the group
that government does not create jobs – businesses do. However, government and
communities can build a healthy environment so that job creation can take place.
Economic development is the long term infusion of wealth into the
economy so that it can continue to provide services. “Leakage” is when more
money is going out of a community than is coming in. This can be reduced through “buy
local first” campaigns that stimulate patronage of home grown businesses rather than
chain stores or franchises. Local businesses can also be encouraged to take a look at
where they buy supplies and seek out local sources. Forman explained that economic
development can also be stimulating the growth of “primary industries.” These
are the businesses that draw dollars into the community from outside sources -
manufacturing, agricultural and tourism. (“Secondary industries” are those that
merely circulate dollars within the community.)
According to Jeff Milchen and Main
Street News, a successful BIBL (Buy
Independent, Buy Local) campaign makes a cultural shift so that local citizens proudly
identify themselves as the kind of person who supports local independent businesses as an
investment in the vitality of their community. This is done by telling the story of local
small business owners in the local media. This should include their contribution to
community character, job creation, customer choice, environmental footprint,
accountability, quality of life and civic life. The message should be tailored to reach
various age, cultural, and interest groups.
According to Maury Forman, economic development is like a three
legged stool. The first leg is community development. This includes social systems,
physical infrastructure, Main Street beautification, signage, development of local
amenities, cultural experiences and recreational opportunities. The second leg is business retention and expansion.
This includes access to capital, workforce training and entrepreneurship in local schools.
The third leg of the stool is attraction of new business. Generally, this means the
attraction of a particular industry or an entrepreneur. Targets should compliment existing
businesses, fit existing infrastructure and public services, have a track record of
contributing to their community, and bring in more money than they are taking out.
One of the most important factors of community vitality is training
employees to engage customers. This includes making sure employees have a knowledge of
their community, such as what items are produced locally and what things are available for
people to do. Visitor friendly towns encourage people to stay in the community longer and
to return for another visit.
Laurel MacMillan from Rural Development Initiatives (RDI)
http://www.rdiinc.org/ presented a tried and true community based program developed by the
Minnesota Extension Service to increase business retention and growth. MacMillan talked
about the use of BATS (Business Assistance Teams) in the BRE (business retention and expansion program.) The process involves assembling a small
Leadership Team of about 5-6 people who will coordinate the program. They form a Task
Force of between 15-30 people to develop a survey and train people to interview selected
local businesses. Then the group analyzes the survey results. In the short term, they
respond to “red flags” mentioned by interviewed businesses as problems. In the
long term, they present their findings to a larger stakeholder group. After hearing from
experts and engaging in dialogue, the group creates and implements strategies identified
to increase the competitiveness of all businesses. |
