The Best Kept Secret in Economic Development! Business Retention and Expansion (BR+E)
Why does a "successful" business need community support?
In short, because stable businesses play vital roles in their communities. Locally owned businesses usually have a long-term commitment to their community. They relate to their community’s lifestyle, and they have a vested interest in their community’s quality of life. They are there because they want to be.
Equally important, existing businesses are major contributors to the community’s economy and tax base. Cumulatively, they employ the greatest numbers and, as they grow and expand, they can generate up to 80 percent of their community’s new jobs. In economic development efforts, existing, successful business owners are precious resources. Their presence as community ambassadors also makes a very positive statement in new business recruitment.
Why should a community have a BR+E program?
Simply put, because everyone benefits -- when existing businesses thrive, so do their communities. And viable, healthy businesses are apt to remain in communities that demonstrate constant and visible commitment. Support of existing businesses also demonstrates support of job creation and additional community cash flow.
Why should your organization promote business retention and expansion?
Because existing businesses can relocate thus leaving a void in your community. They must not be taken for granted! The reasons a business may leave a community include lack of public services, political unrest, site limitations and lack of trained labor, just to name a few. Some reports indicate that another reason companies relocate is because the owner decides he/she would rather live somewhere else. In order to prevent some of the potential closures and/or relocations in a community, outreach to businesses may be necessary. However, when hard times hit a business community, and closures or failures occur, it is already too late to save some businesses. Take action early! For example, an organization representative should visit all new businesses, welcome them and develop a relationship. Let them know who to call for information on business assistance. This will send the positive message that the community cares about their future and well-being. -- Excerpted from the Arizona Commerce Authority
A community consensus approach to encourage the growth of local businesses
Why Business Retention and Expansion?
A healthy and vibrant local economy depends on the well-being of a community’s existing firms.
Thus, efforts aimed at helping local businesses survive and grow in the local community are key to successful economic development. The community benefits because:
• Forty to eighty percent of all new jobs are created by existing firms
• Businesses that stay competitive are more likely to remain in the community and possibly expand
• Keeping an existing business is often easier than recruiting a new firm
• Firms considering moving will talk to existing firms. Odds are better of attracting new firms if existing ones are happy with the community.
Benefits of the Community Leader’s approach to BR+E
Economic development efforts often require action from many community players. Without community consensus, economic development stalls.The University of Minnesota Extension Service provides technical assistance, training and research to help communities assess business concerns, understand the structure of the local economy, set priorities, and implement projects that will help make communities more vibrant.
BRE Objectives
Short Term
• Demonstrate community support for local firms
• Help solve immediate business concerns
Long Term
• Build community capacity to sustain business growth and development through creation of a broad-based coalition
• Increase the competitiveness of local firms
• Establish and implement a strategic plan for economic development
-- Excerpted from the University of Minnesota Extension Service
Thursday, December 9, 2010
Saturday, December 4, 2010
Ten Signs of a Business-Friendly Community
1) The community has a pro-business attitude — starting at the top. If top officials in local government like councilors and selectors support new businesses, chances are good that others within the community will be supportive as well.
2) The community lets it be known that it is “open for businesses” by having someone — usually an economic development director — in place to act as a liaison between businesses and community officials to streamline the development process.
3) The community is proactive about offering tax increment financing packages (TIFs) or other tax breaks to attract businesses. As tax breaks are becoming a common tactic to lure companies, cities and states that do not make an effort to offer them up front run the risk of seeming standoffish to new business.
4) The community has a skilled work force — or if not, the community will willingly form partnerships with businesses and local community colleges in training programs to meet a company’s specific needs.
5) The community has sound infrastructure in place. If it is not completely up to par, companies should not hesitate to ask city officials how willing they are to make upgrades happen sooner rather than later. Often the promise of new jobs may be just the thing to make it a top priority.
6) The community has municipal services — such as water, sewer, electrical ,and high-speed Internet — that are up to par and affordable, as well as fire and police departments that are reliable and possess state-of-the-art equipment. Business-friendly municipalities will be quick to impress upon prospects that they have the capability to handle such things as fires, road maintenance, etc., and are willing to make the necessary investments to keep it that way.
7) The community has a good school system and recreational opportunities, and makes an effort to invest in their local arts organizations. Business-friendly communities realize that in order for a company to be successful, it needs to find a location where current and future workers will want to work, live, and raise their families.
8) The community has officials who are aware of the importance of good public relations and are willing to go out of their way to spread the good word on behalf of new businesses coming to town.
9) The community operates with a realization that time is money for business owners, and its officials are willing to cut through red tape by assisting on things like the pre-permitting of development sites.
10) The community has resources and people to do the legwork and help companies find the best land or building available, or to work with them to ensure a new facility can be built to meet their needs.
Read the entire article at Area Development Online http://www.areadevelopment.com/viewpoint/apr07/tenSigns.shtml
2) The community lets it be known that it is “open for businesses” by having someone — usually an economic development director — in place to act as a liaison between businesses and community officials to streamline the development process.
3) The community is proactive about offering tax increment financing packages (TIFs) or other tax breaks to attract businesses. As tax breaks are becoming a common tactic to lure companies, cities and states that do not make an effort to offer them up front run the risk of seeming standoffish to new business.
4) The community has a skilled work force — or if not, the community will willingly form partnerships with businesses and local community colleges in training programs to meet a company’s specific needs.
5) The community has sound infrastructure in place. If it is not completely up to par, companies should not hesitate to ask city officials how willing they are to make upgrades happen sooner rather than later. Often the promise of new jobs may be just the thing to make it a top priority.
6) The community has municipal services — such as water, sewer, electrical ,and high-speed Internet — that are up to par and affordable, as well as fire and police departments that are reliable and possess state-of-the-art equipment. Business-friendly municipalities will be quick to impress upon prospects that they have the capability to handle such things as fires, road maintenance, etc., and are willing to make the necessary investments to keep it that way.
7) The community has a good school system and recreational opportunities, and makes an effort to invest in their local arts organizations. Business-friendly communities realize that in order for a company to be successful, it needs to find a location where current and future workers will want to work, live, and raise their families.
8) The community has officials who are aware of the importance of good public relations and are willing to go out of their way to spread the good word on behalf of new businesses coming to town.
9) The community operates with a realization that time is money for business owners, and its officials are willing to cut through red tape by assisting on things like the pre-permitting of development sites.
10) The community has resources and people to do the legwork and help companies find the best land or building available, or to work with them to ensure a new facility can be built to meet their needs.
Read the entire article at Area Development Online http://www.areadevelopment.com/viewpoint/apr07/tenSigns.shtml
Thursday, December 2, 2010
Political will, federal dollars, and port expansion in the Southeast
The pledge to abstain from earmarks made on the campaign trail is proving more complicated in practice.
Some senators' resolve is being tested as two of the nation's major ports, Savannah, GA and Charleston, S.C., urgently seek funding to expand. Port officials say federal dollars will be crucial next year so they can deepen their harbors to accommodate bigger ships after the Panama Canal is widened and reopens in 2014.
It isn't clear that can be done without earmarking—special funding that lawmakers request for projects in their home states.
The Savannah port is seeking $105 million for the upcoming fiscal year to begin dredging the port, while Charleston wants $400,000 for a feasibility study for its own deepening project. If the ports cannot receive the mega-ships, Savannah and Charleston officials say, the cargo will go to New York or Norfolk, Va., which they argue would be inefficient and deliver an economic blow to the Southeast, costing jobs.
Spending on items such as ports, bridges and roads are included in the president's annual budget, which is then reviewed by congressional committees. It's at that point that lawmakers often go to a committee chairman to get their earmarked projects inserted. Individual projects could also be funded in free-standing bills, but that would be impractical, given how numerous such projects are.
Sen. Lindsey Graham (R., S.C.) supports the earmark ban but has vowed to earmark funds for the Charleston port if necessary. "I'm in a spot where I have to get the port deepened for economic reasons," he said.
Democrats from the region say the ban never made any sense. "Charleston is going to be dead in the water because of this short-sighted myopic view that seems to be controlling," said Rep. James Clyburn (D., S.C.).
Savannah, the second-busiest port on the East Coast after the Port of New York/New Jersey, has been pressing an application with the U.S. Army Corps of Engineers since 1999 to dredge the Savannah River from its current 42-feet depth at low tide to 48 feet. This month, the Corps recommended dredging to 47 feet. The cost has been estimated at about $600 million—$400 million of which would be sought in federal funds.
Curtis Foltz, executive director of the Georgia Ports Authority, said in an interview that he and other officials had visited Washington repeatedly to lobby the White House and the state's congressional delegation. Having no port for large ships in the Southeast would increase the cost of transporting imported and exported goods from one of the fastest-growing parts of the nation, he said.
Georgia's Republican senators are touting their opposition to earmarks but also suggesting they'll do whatever it takes for the port. "My position has consistently been, I'm going to support reform or total elimination of earmarks," said Sen. Saxby Chambliss (R., Ga.). "But if a project is vital to the economy and jobs of my state, I'm sent here by the people of my state to make sure their interests are looked after."
Sen. Johnny Isakson (R., Ga.), who also supported the ban, said he would "continue to fight for funding for projects such as the expansion of the Savannah port that is critical to my state and to U.S. trade."
The Charleston port, like its counterpart in Savannah, is a major driver of its state's economy. Charleston officials are planning a new terminal by 2016 that will boost the port's container capacity by 50%. They also want to deepen the port—the East Coast's fourth-largest—by five feet to 50 feet.
Sen. Jim DeMint (R., S.C.), one of the Senate's foremost earmark opponents and the force behind the ban, does not intend to make an exception for Charleston, a stance that has attracted praise from fiscal conservatives but some heat at home. Mr. DeMint said he strongly supported the port, but that the earmark system had not helped it.
Port projects are handled by the Army Corps, whose budget is largely driven by earmarks. Mr. DeMint has proposed a merit-based system under which a commission would determine which Corps projects receive priority.
QUESTION: Expanding the ports in Charleston and Savannah may require expending considerable political capital. With limited dollars and many politicians pledging to forgo earmarks, what does this mean for JaxPort expansion? Will JaxPort be able to compete effectively with other ports in the Southeast in the future?
Read the full Wall Street Journal article, "Projects Test Resolve on Earmarks" by Cameron McWhirter and Naftali Bendavid
Some senators' resolve is being tested as two of the nation's major ports, Savannah, GA and Charleston, S.C., urgently seek funding to expand. Port officials say federal dollars will be crucial next year so they can deepen their harbors to accommodate bigger ships after the Panama Canal is widened and reopens in 2014.
It isn't clear that can be done without earmarking—special funding that lawmakers request for projects in their home states.
The Savannah port is seeking $105 million for the upcoming fiscal year to begin dredging the port, while Charleston wants $400,000 for a feasibility study for its own deepening project. If the ports cannot receive the mega-ships, Savannah and Charleston officials say, the cargo will go to New York or Norfolk, Va., which they argue would be inefficient and deliver an economic blow to the Southeast, costing jobs.
Spending on items such as ports, bridges and roads are included in the president's annual budget, which is then reviewed by congressional committees. It's at that point that lawmakers often go to a committee chairman to get their earmarked projects inserted. Individual projects could also be funded in free-standing bills, but that would be impractical, given how numerous such projects are.
Sen. Lindsey Graham (R., S.C.) supports the earmark ban but has vowed to earmark funds for the Charleston port if necessary. "I'm in a spot where I have to get the port deepened for economic reasons," he said.
Democrats from the region say the ban never made any sense. "Charleston is going to be dead in the water because of this short-sighted myopic view that seems to be controlling," said Rep. James Clyburn (D., S.C.).
Savannah, the second-busiest port on the East Coast after the Port of New York/New Jersey, has been pressing an application with the U.S. Army Corps of Engineers since 1999 to dredge the Savannah River from its current 42-feet depth at low tide to 48 feet. This month, the Corps recommended dredging to 47 feet. The cost has been estimated at about $600 million—$400 million of which would be sought in federal funds.
Curtis Foltz, executive director of the Georgia Ports Authority, said in an interview that he and other officials had visited Washington repeatedly to lobby the White House and the state's congressional delegation. Having no port for large ships in the Southeast would increase the cost of transporting imported and exported goods from one of the fastest-growing parts of the nation, he said.
Georgia's Republican senators are touting their opposition to earmarks but also suggesting they'll do whatever it takes for the port. "My position has consistently been, I'm going to support reform or total elimination of earmarks," said Sen. Saxby Chambliss (R., Ga.). "But if a project is vital to the economy and jobs of my state, I'm sent here by the people of my state to make sure their interests are looked after."
Sen. Johnny Isakson (R., Ga.), who also supported the ban, said he would "continue to fight for funding for projects such as the expansion of the Savannah port that is critical to my state and to U.S. trade."
The Charleston port, like its counterpart in Savannah, is a major driver of its state's economy. Charleston officials are planning a new terminal by 2016 that will boost the port's container capacity by 50%. They also want to deepen the port—the East Coast's fourth-largest—by five feet to 50 feet.
Sen. Jim DeMint (R., S.C.), one of the Senate's foremost earmark opponents and the force behind the ban, does not intend to make an exception for Charleston, a stance that has attracted praise from fiscal conservatives but some heat at home. Mr. DeMint said he strongly supported the port, but that the earmark system had not helped it.
Port projects are handled by the Army Corps, whose budget is largely driven by earmarks. Mr. DeMint has proposed a merit-based system under which a commission would determine which Corps projects receive priority.
QUESTION: Expanding the ports in Charleston and Savannah may require expending considerable political capital. With limited dollars and many politicians pledging to forgo earmarks, what does this mean for JaxPort expansion? Will JaxPort be able to compete effectively with other ports in the Southeast in the future?
Read the full Wall Street Journal article, "Projects Test Resolve on Earmarks" by Cameron McWhirter and Naftali Bendavid
Subscribe to:
Posts (Atom)