Glenn Muske

Rural and Agribusiness Enterprise Development Specialist

Glenn.Muske@ndsu.edu

Small Business and CommunityCCV Webinar Wednesday

April 27, 2016

Small Busin

ess

Ruled the World!!

And the story is still true!

ND Story

67, 677 Small Businesses (96%)+

18,561 farms/ranches (59%)(under $100,000 in sales)

2008 Data*May be in both categories

US Average21%

Proprietors*/# of employees

2008 Data

Average Entrepreneur Income

US Average$28,638

What’s a small business?

And how do small biz differ from entrepreneurs??

And which do we want?Answers1. Small business – A common measure: Less than 500

employees

2. 4 common elements: Innovation and planning behaviors + lifestyle and risk attitudes - Terms used interchangeably.

3. Both

Goal: Enhance Economic Engine of ND

CARES ModelCreateAttractRetainExpandSuccess

Economic Sector Objectives:

Jobs$$

CSRAccess to products and services

Quality of lifeBuild communities that attract

Add value

Jobs

• 182,314 jobs – 60% of the private workforce• 95.9% of all state’s employers

$$$• Money spent outside of community - $0 return• Money spent local chains/franchises - $.43 sticks

around• Money spent in local businesses - $.68 sticks around

And the funds that stay around, circulate 1.6 to 2.4 times

CSR Defined(Community/Corporate Social Responsibility)Corporate social responsibility (CSR) is a business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders.

• 3 Dimensions• Responsibility to consumers, employees and shareholders• Responsibility to environment• Responsibility to broader community

• Theoretical Perspective – Enlightened Self-Interest Model• Big issue - Free rider problem

CSR Measured

• Gauged by:• Business commitment to community*• Personal leadership in the community• Community collective action• Business support**

* - Areas where financial support comes into play

CSR Brings to Business:

RecognitionGoodwill

Higher employee moraleEnhanced ability to attract

new customersEnhanced ability to attract

new employees

Increased collaborationMore customers

More return customersCustomers as ambassadorsGreater feelings of success

CSR Brings to Community:

Individuals and FamiliesCommunity Morale

Services and ProductsQuality of Life

Elected OfficialsVolunteersNew Ideas

Access to products and servicesQuality of lifeBuild communities that attract

Add Value

One Role for Extension: Help with

Second Role for Extension

Be an Ambassador!Market!!

Traditional Marketing Online Marketing

Promotion

PaidPR

One-on-one & Networking

Word-of-mouth & ReviewsReputation

YOUMarketing:

Use All the Tools

Third Role for Extension: Ignite the Passion

Fourth Role for Extension: Facilitate Learning –Any Time and Any Place

Eliminate the MythsFree MoneyGet Rich Quick!If you build it, they will come.You have to be born an entrepreneur“I’ll have all this free time…”It gets easier.

Other Potential Roles• Awareness and promotion of the small business role • Watching for ideas and opportunities• Networking and connecting – i.e., Chamber of Commerce, Industry contacts• Market development• Resource gathering - $$, data, people, etc. • Mentoring• Locating support services

• Best if on-going and long-term• Possibilities include:

• Coach• Mentor• Friend• Sounding board• Advisor

ResourcesNDSU• Center for Community Vitality – Growing Economies• Manufacturing Extension• Small Business• https://www.ag.ndsu.edu/smallbusiness

• Starting Your Own Food Business in North Dakota • Carrington Research Station• Extension Horticulturist Specialists and Others• High Tunnel Project

More ResourcesNorth Dakota• ND Dept of Agriculture• ND Farmers Market and Growers Association• ND Dept of Commerce• State Bank of ND• ND Sec of State• ND Division of Tourism• Entrepreneurial Center for Horticulture• ND Health Dept.• ND Tax Commissioner

Federal• USDA Rural Development• Small Business Administration – SCORE – Small Business Development Centers

Glenn MuskeRural and Agribusiness Enterprise Development Specialist

Glenn.Muske@ndsu.eduMay, 2016

Comments?? Questions??