Business Retention and Expansion Flashcards
What does the retention and expansion of local businesses do for a community?
Keep or increase local jobs; Preserve or increase the local tax base; Increase local property values; Enhance community image/increase confidence; Maintain or diversify the economic base.
A formal BRE program can help a business in what ways?
Increase its competitiveness in the wider marketplace; Expand and add new jobs; Keep from relocating to other areas; Survive economic difficulties; Connect to networks.
What are the components of a BRE program?
Team Building: build a BRE team with economic, community and workforce development organizations and departments of local government that provide programs, resources or services to the business community. Each must have a common knowledge and level of trust.
Outreach/Relationship Building: with a team of service providers in place, outreach can be conducted to build stronger relationships with business owners and managers. Outreach can be done via periodic surveys, targeted focus groups, cluster groups, and in-person visits to key businesses.
Red Flags/Responding to Needs: once data is collected and analyzed/understood, the immediate task of the BRE team is to respond to red-flag issues facing individual companies.
Management and Follow up: a program managers duties include identifying and training personnel to conduct BRE visits; maintaining and building the team of service providers; managing all aspects of the program; resolving program-related issues; and coordinating media and public relations activities. Follow-up is a required element whether or not the business has received assistance from the BRE program.
A successful BRE program includes what characteristics?
Industry knowledge: of those comprising the local economic base. This includes the industry trends influencing the competitiveness of local firms. Growing firms exist in declining industries and declining firms exist in growing industries.
Primary knowledge of firm needs and priorities: know what local and external issues confront the firms in your community. Give priority to community factors that are most important to local companies and also those over which you have some control.
Primary knowledge of firm needs and priorities: be seen as a professional account executive that educates companies about new opportunities and continuously introduces the company to useful new services and resources.
Outcome-oriented: work with the company to define expectations and impact. Assess immediate customer satisfaction with the service provided and evaluate longer-term impacts.
Favorable business climate focus: seek efficient, leveraged and systematic approaches to solving business retention and expansion problems.
Coordinate Services: employ a coordinated service-team approach to assist companies that require services from multiple agencies or programs.
What are some of the roles of the economic developer?
Advocate for business community’s concerns;
Organize and maintain a database of available buildings and sites;
Maintain regular contact with existing businesses;
Communicate the value proposition of the area to local firms;
Create networking opportunities.
What specific items should be looked at in a SWOT analysis?
Strengths and Weaknesses:
Labor Force: relatively old or young? Educational attainment? Difficulty finding and retaining workers?
Access to Markets: how many people live within 100, 250, and 500 miles of the community? Do current major employers/industries produce products that are sold to consumers or are they sold to other business consumers?
Transportation: close proximity to an interstate or rail? Access to major port? Average commute time?
Educational Infrastructure: how is the school system? Is there a college campus or university near by?
Site Availability: is land available for businesses wishing to expand? Are utility companies upgrading infrastructure on available sites?
Business Climate: are tax rates competitive? Are state and local governments responsive to business community needs and concerns? Transparent regulatory processes?
Utility Costs and Availability: are utilities available at potential sites? Supply issues, i.e. sewer capacity?
Quality of Life: good housing stock? Ample recreational opportunities? Commute time?
Resources: are there chamber of commerce, SBDCs? Civic organizations? Local workforce agencies?
Opportunities and Threats:
Outlook: are the key industries young and growing, or old and mature? Clusters present; growing or declining?
Technology: how will technological advances impact local industries? Are local industries innovative? Is there a technology-based ED plan?
Legal and Regulatory Changes: are there state or national policy actions on the horizon that will benefit or harm key industries?
Large Employers: is the community dependent on a single or small number of employers or industry for jobs or tax revenues?
Economic Trends: how will the overall economic outlook for the state, region, and the nation impact key local industries? Will rapid growth or recession in international markets affect key industries?
Competitors: to what extent are other regions or nations attracting key local industries?
Once a SWOT analysis has been completed the EDO should complete an action plan. What should be included in the action plan?
Objectives and Goals: leverage existing strengths so as to capitalize on the best opportunities available to the community. Address major weaknesses that, if left unattended, may pose threats to the community’s ability to retain and expand its existing employment base.
Taking Action: create an action plan that lists each objective, along with details concerning how the goal or objective will be achieved. Which persons or groups are responsible for achieving the objective? What specific programs and initiatives will be used to help achieve the objective? What is the budget? Target date?
Monitoring and Evaluation: impact on the business (were there any changes in the sales, profitability, competitiveness, etc.); effectiveness of assistance to targeted businesses; jobs created and retained (new jobs created not transferred from another region); effectiveness of leveraged resources (which resources were best leveraged and which were not used as frequently as expected, why?); and impact on community (should be done after 2 years, look at increased income and taxes).
Who is the best entity to lead and house the BRE program?
Local, county, and state governments.
What does a BRE program need to be successful?
Appropriate human capital: to manage the program, conduct outreach, resolve problems, and provide technical assistance
Budget: size and what costs will be included
Technology: software programs and data collection and analysis, CRM
