Growing a Local Economic Development Effort

TIM HIGHT, EASTERN OKLAHOMA COUNTY PARTNERSHIP

TODAY - Let’s Discuss

1. Importance of “ Wealth Creating” jobs and investment

2. Economic Development & Business Development

3. Business Trends That Affect Economic Development

4. Roles for Career Tech BIS Teams in Economic Development efforts

5. Q&A

WHO AM I?

EOC Partnership is a 501 (c)(6) public- private economic development partnership serving as a one-stop resource for creating, promoting, and sustaining jobs and investment in Eastern Oklahoma County.

WHAT IS ECONOMIC DEVELOPMENT?

While there is no single universal definition, economic development is the process through which localities enhance quality of life for residents by creating new community and business wealth.

This increase in prosperity is achieved by: Advancing private enterprise Making productive use of local resources Creating high-quality jobs Generating new personal income Broadening the tax base

KEY ECONOMIC DEVELOPMENT AREASBusiness Retention and Expansion

Economic Development Finance

Real Estate Development & Reuse

Technology-led Economic Development

Economic Development Strategic Planning

Neighborhood Development

Economic Development Marketing & Attraction

Entrepreneurship & Small Business Development

Workforce Development

MARKETING & BUSINESS ATTRACTION

1. Positioning a community\region as a product

2. Entails identifying potential customers & needs, developing a product to meets needs, creating message that persuades potential customers to take some sort of action, and distributing that message.

3. Marketing is one of the main principles of ED because of the effects a good marketing campaign has on business recruitment and retention.

4. EDOs now target their marketing campaigns at specific industries, clusters, or companies rather than shooting at anything that flies.

BUSINESS RETENTION & EXPANSION

Business Retention & Expansion programs have 2 components. 1. Business Retention - Prevent companies from relocating

out of the community by diagnosing problems early and creating a healthy business environment.

2. Business Expansion and Growth - Creating tools, policies & incentives to grow businesses already located in the community. Creating business-to-business networks, directories, & programs to enhance the local market.

70 % of job Growth will come from existing businesses. 15% of additional job growth is referred from existing business. Existing businesses represent 85% of your market.

BUSINESS ADVOCACY Business Advocacy has two parts:

1. Informing the government & public about businesses concerns

2. Seeking to achieve substantive changes to address business concerns, such as specific public expenditures,

programs, and regulatory reforms.

ED seeks to increase local employment & the tax base.Supporting and addressing business concerns can meet both of these objectives.

SMALL BUSINESS DEVELOPMENT & ENTREPENEURSHIP SUPPORT

EDOs are focusing on supporting entrepreneurs as a way to foster the growth of businesses in a region.

Many entrepreneurs don’t possess skills or knowledge needed to start-up and manage a successful business.

Types of entrepreneurial assistance and training offered by EDOs: starting a business, financial mgmt., accounting, & marketing.

Training can provided directly by the EDO or by existing partner organizations.

WORKFORCE DEVELOPMENT Businesses need skilled personnel for productivity\

profitability.

Workforce programs seek to upgrade skills of existing workers and\or improve basic skills of entry-level workers.

Increased competition and technological changes have resulted in a new mix of specialized workforce skill requirements.

EDOs coordinate job dev. & training efforts between public partners and private employers to specific industry needs.

EDOs inventory their current workforce skills to demonstrate their community’s unique workforce capabilities.

ED RULES OF THUMB Companies won’t expand or locate in areas that

are not growing. An active economy is the source of community

wealth and well being.

Investment has a choice. Companies choose locations based on where they will make the most money.

90% of Successful ED efforts involve showing up. The remaining 10% are highly technical.

ECONOMIC DEVELOPMENT ORGS: Define Strategy & Build RelationshipsSet Focused Strategy & Comprehensive Campaign

Stimulate Business Growth – Grow Existing Business and Target New Industries

Resource Development – To Support Economic Growth

Build Partnerships with Existing CompaniesWorking Relationships with Govt. AgenciesEducate Community About Need for ED Host Prospective Businesses and Deal MakersRegionalism - Develop true regional ED

partnership

TOP ECONOMIC DEVELOPMENT PROGRAMS HAVE 6 GOALS

Make Existing Employers More Competitive

Encourage New Employer

Capture More Local Dollars

Attract New Employers

Access Outside Sources of Capital

Quality of Life

TYPES OF ED ORGANIZATIONS

Public EDO- Individual or group is responsible for EDO’s overall direction. It may be a mayor and city council, a board comprised

of public officials & private sector representatives or a strictly private sector board. Public EDOs are completely funded and governed by the public sector.

Private EDO - By far the least common, with Chambers of Commerce being the most predominant in that category.

Public-Private Partnership - Combine funding sources and governance in differing degrees, depending on the particular case.

These classifications are defined by the sources of funding an EDO receives and by the makeup of its governance.

EDO LEGAL STRUCTURES 501(c)(3) - Membership-based nonprofit organizations. Can't engage in lobbying activities.

501(c)(6) - Nonprofit business leagues, chambers, boards of trade and associations that may engage in lobbying and

political activities without risking their tax-exempt status.

501(c)(4) - Nonprofits organized as civic leagues, social welfare organizations, and associations to promote community welfare, charitable, educational, and recreational purposes. Tax-deductible charitable contributions are not allowed. Can earn a profit from projects on a temporary basis. Nonprofit real estate redevelopment organizations fit in this category.

WHO LEADS E EFFORTS?

State and Local Governments – Public Chambers of Commerce – Private Port Authorities – Public Business Improvement Districts – Public Tech Transfer Organizations – Public, Private & PPP Empowerment and Enterprise Zones - Public Community Development Banks - Private Certified Development Corporations - Public, Private &

PPP Community Development Corporations - Public, Private &

PPP Industrial Dev Corps & Authorities - Public, Private & PPP Tech Centers, Universities & Colleges - Public State & Local ED Organizations – Mostly Public Regional/Metropolitan Marketing Orgs - Mostly Private &

PPP

HOW ARE ECONOMIC DEVELOPMENT ORGANIZATIONS FORMED? Steering committee forms and meets to discuss

direction

Articles of incorporation developed and bylaws are established

Steering committee elects officers and board

Board determines staffing strategy and timetable

Strategic plan is developed, implemented, and monitored

YOUR MISSION……. You are a BIS Director and your campus is 1 hour from the nearest metropolitan area. There is only 1 Chamber of Commerce in your school district area and no other EDOs. Your school and it’s leadership are well respected in the 5 communities you serve. There are only a handful of businesses in your area and residents want job growth. Your school Superintendent has asked you to research economic development models and provide suggestions for growing a local ED effort. Describe the steps you will take to move forward in your region.

ECONOMIC DEVELOPMENT HAS CHANGED

Old: Pre-9/11

Smokestack Attraction

Ignored Existing Industry

Ignored Small Businesses

Thought Parochially

New: Post 9/11

Business attraction efforts now more focused on targeted industry sectors.

70% of Job Growth comes from existing industry. ED Efforts targeted here.

Small businesses have become a targeted industry for most ED orgs.

ED has become a regional, multi-jurisdictional business.

HOW DID THIS HAPPEN? 2000-2010 1 Decade = 2 Great Economic Recessions Post 9/11 & The Great Recession

Globalization and Off-shoring

Increased Energy Costs

Increased Manufacturing Efficiencies and Automation

Increased Lending Restrictions and Government Regulations

ED PRACTIONER ROLES Analyst – Understands local economy SWOT Provides

quantitative & Qualitative info. decision & policy maker

Catalyst – Uses incentives to leverage projects. Involves variety public\private sector actors. Evokes enthusiasm

Gap Filler – Provides assistance where markets can’t

Advocate – Speaks out for community well being & biz

Do these sound like roles that you play on your campus?

THE ROLE OF BIS IN ECONOMIC DEVELOPMENT EFFORTS

BIS staff roles in local economic development efforts vary & are determined by the school’s ED philosophy. Know your Administration’s philosophy.

Technology Centers set the tone and BIS Director’s and staff execute the strategy.

In baseball, each player should be involved in each play. That involvement is clearly communicated. Likewise you should be involved in ED efforts. Talk to your leadership about what your involvement looks like.

ED PROS & BIS TEAM MEMBERS: AREAS OF COMMON GROUND

ED Make BR&E Visits

Need Workforce Dev. Partners

Needs Small Business Dev. Partners

BIS Staff Make Industry Visits

Provide Workforce Dev. Services

Provide Small Business Services

We’re not as different as you might think……..

HOW DO I GET INVOLVED IN ECONOMIC DEVELOPMENT EFFORTS?

Know your campus administrators ED philosophy. Be a part of your campus or local EDO BR&E team.

Connect with those who are involved in ED efforts.

Join your local chamber or EDO.

Volunteer with your local EDO or Chamber of Commerce.

Look for economic development gaps.

YOUR MISSION…… Your are the BIS coordinator of a Tech Center Campus

located in a rural region 50 miles from the nearest Metro area. You have an existing EDO in your area, but your school has not been involved in economic development efforts. The area EDO has hired a new CEO and your school superintendent has asked you to become involved in economic development. How do you get involved in future economic development efforts?

Assign a Group Leader (spokesperson).

Determine your strategy.

OKLAHOMA’S ADVANTAGE We are centrally located.

We have lower business costs than most states.

We are quickly becoming a hub for entrepreneurs

World class training and workforce development system

We are in an unprecedented time of business growth and recognition from the global business community

BOTTOM LINE: We must work together to maximize these advantages. It takes an army

to build a winning economy!

THE CAREER TECH ADVANTAGE

You are a partner & convener of leaders – They trust you.

You incent job growth – Adult and Customized Training, etc.

You connect businesses with needed resources

You facilitate small business development efforts

You have business incubators offering support & incentives

BOTTOM LINE: OKLAHOMA HAS A WORLD CLASS SYSTEM!

WHERE DO I GO FROM HERE?

Know your school’s ED philosophy.

Be a willing partner on your BIS teams existing industry effort. Ask your BIS Coordinator how you can be involved.

Now is your time to shine! Be a catalyst.

QUESTIONS

?

TOGETHER WE ARE BETTER!

TIM HIGHTExecutive DirectorEOC Partnership

Office: 405-390-9591Email: thight@eoctech.org