Business Retention & Expansion Flashcards
BRE programs assist businesses in an effort to
help them survive economic difficulties
assist with expansions and add jobs
increase their competitiveness in the wider market
existing businesses are responsible for ____ % of all net new employment
80
BRE programs typically involve partnerships with
public sector, businesses and community leadership
what is an early warning system?
a sign that a company is at-risk and could be facing trouble that leads to layoffs, shutdowns, or relocation
BRE programs enable communities to keep up-to-date pictures of the community by getting data on
competitive strengths and weaknesses of the local area as a business community
relative strength of the local economy (number of business investments and expansions)
areas of interest and concern that can be used to formulate public policy, enhance development efforts, or improve the local business climate (available workforce, regulatory issues, access to capital)
successfu BRE programs are based on several factors
- industry knowledge - know the industries in your community
- local firm knowledge - know the comapnies and their primary needs and priorities
- professional service - offering high-quality business services that can meet the changing needs of companies
- results oriented - adopt an outcome or result in service delivery
- focused on long-term - encourage a favorable overall business climate in the long-term
- coordination of services - employs a team approach to help companies
what are some of the ways that economic development practitioners can help with BRE
- provide resources directly
- act as a broker between company and resources
- act as an advocate for businesses dealing with the public process
________ typically include folks offering financing, technical assistance, management and technological assessments, workforce training and retraining, finding new markets
service providers
_____have a special interest in maintaining the business community because exiting business represents their customer base
Utilities
the survival and profitability of utility companies depends on
the preservation and growth of the customer base in their service area
utility BRE programs might include
- discounted rates for growing companies
- info on available land and facilities in the service area
- energy auits to help companies save energy and increase operating efficiency
- revolving loan funds and grant programs for small companies
- low cost financing for local business
- export promotion assistance or new market expansion assistance
BRE programs are typically housed in ____, ______, or _____ organizations
local, private, or public private
advantages of a local government BRE program
- staff likely have day-to-day contact with top elected and appointed officials providing opportunities to build support for the program
- staff from other departments affecting business may be more responsive to fellow employees
disadvantages of a local government program
- business owners may be dismissive of the public sector’s ability to help
- funding could be drastically reduced or eliminated
- personnel rules or collective bargaining agreements may mean that someone without experience is put into the BRE role
Private sector (chambers) program advantages
- staff may have more credibility than government employees with local business
- members can be leveraged to serve as keep personnel in the program
- without short-term political considerations can take a longer term approach
private program disadvantages
- public regulatory agencies can be unresponsive
- businesses can use their membership in the chamber to thwart efforts they don’t support (like wanting to maintain certain levels of unemployment to keep wages low)
- lack of funding due to tight budgets [could contract the work out to local EDO]
public/private partnership organization advatages
- initial government funding can leverage additional funds from private sector
- being outside government there is a level of protection from elected officials but there is still access to government staff
- increased flexibility in staff and personnel issues (ability to hire more aggressively)
public/private disadvantages
- chamber may view as a funding competitor
- may be viewed as redundant if there are already local BRE programs
look at these areas when assessing the strengths and weakness of the community
labor force access to market transportation educational infrastructure site availability tax rates utility cost and availabilty quality of life business climate
true or false: action plans should never change
FALSE; an action plan is based on the community’s status at a certain time and should be updated annually
what two things can a business visitation survey provide?
- an alert about early warning signs
2. database information that tells the practitioner about the dynamics of the community
List the five survey models
- site visit surveys using volunteers
- site visits with staff
- combined mail and site visit surveys
- email or web-based surveys
target companies to interview based on the ____
strategic objectives of your community
ways to determine who to target can be based on _____
size of company - number of employees, annual sales, annual revenue
industry segment - using NAICS code
geography - specific districts
ownership - maybe just locally owned or international firms
survey administration should not exceed ___
45 minutes to one hour
surveys should ask questions about
company background business climate labor and training needs marketing and trade financing regulatory issues growth constraints satisfaction with public services and facilities experience with local business assistance programs
describe the immediate follow-up response
within two days of completing the survey it’s reviewed for assistance requests and red flags and a rapid response is deployed
describe the short term survey response
send a thank you note within two weeks of the survey response
describe the medium term company response
within four weeks of the survey effort ensure that any agencies called upon for response assistance have provided the support required
what is the the long term survey response
about 3-4 months after the survey firms should be updated on the progress of addressing community-wide issues that impact the business climate
an early warning system
predicts when a local company is in danger of closing or relocating
some early warning signal include
decling sales and employment large, non-local corporate ownership recent ownership changes lease of property or an expiring lease other faciltites producing the smae product or service negative attitudes about the community regulatory burdens union contratc expirations expanding employment/sales facility and site expansion plans land locked or obsolete facilities problem neighborhoods old product lines or obsolete facilities family-owned companies with older owners and no succession plans loss of supplier relocation of top management
name two public resources that BRE programs can use to market their services
utilities -send information about program out with audits
community college systems - pile on with college staff marketing their continuing education and training opportunities
what are some of the specialized amenities and support services that can help clusters grow?
- business service firms that specialize in providing services to the industry
- financial institutions or venture capitalists that specialize in funding the industry
- major research university that supports the cluster through specialized research and academic programs
creating _____ will be a critical element in most retention and expansion programs
new site opportunities
______ programs can provide management consulting expertise to small and medium sized firms at an affordable cost
technical assistance
name some types of technical assistance offerings
operations management
marketing sales assistance (exporting strategies)
financial control systems
workforce training and development
strategic planning (writing business plans)
technical assistance programs offer ____ at a fraction of the cost
consulting
technical assistance - determining who to target
how large is company?
does the company export?
does the company employ a large number?
have they asked for assistance?
technical assistance - what are standards for participation
is there a minimum or maximum size?
are there financial conditions?
do there need to be growth opportunities?
technical assistance - what is the scope of services offered
provide the most comprehensive package of assistance possible
technical assistance - determine how to best provide needed services
contract with local management
hire staff
partner with college system or SBDC
workforce development programs are being targeted to help_____
drive industry
public dollars spent to upgrade the skills of a community workforce will largely
stay in the community
a well-trained workforce can give a community a distinct advantage that cannot
be easily duplicated like normal incentives
the survival and possible expansion for many companies depends on ______ for their products and services
identifying new markets
____ and _____ assistance is potentially a very immediate way to help companies
permitting; licensing
possible ways to assist with permitting and licensing
one-stop-shop technical assistance ombudsman case management assistance center
