Economic Development An Emerging Profession How to practice it effectively'

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Economic DevelopmentAn Emerging ProfessionHow
to practice it effectively.

• (right, like we can learn it all in 60 minutes)

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Sheldon Keyser, CED IllinoisUSDA Rural
Development
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My Town
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Economic Development is an emerging
profession. Economic Development is an applied
science. Dr. Robert Koepke CED

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Good Ole Boy.
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Originally practiced by

• Railroads in settlement of new right of ways.
• Then
• Chambers of Commerce

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Economic Development was initially funded by and
served private interests. Now the profession
gets public support and serves both public and
private interests.
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Knowledge Skills the ED Professional must have.

• Computer
• Construction
• Creative Writing
• Economics
• Education Development Job Training
• Engineering

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Knowledge Skills the ED Professional must have.

• Environmental Management
• Financing
• Geography
• Government
• Human Relations
• International Relations

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Knowledge Skills the ED Professional must have.

• Law
• Marketing
• Planning
• Public Speaking
• Statistics
• Technology Trends
• Real Estate

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Economic development is the process of creating
wealth in the local community. It is most
commonly measured by new employment
opportunities, increased personal incomes and
expansion of the tax base.
Swagler 1991
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Economic Development

• Keep the wealth we have
• Add new wealth

Jobs
Tax Base
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The Rusty/Leaky Bucket Concept

• Outflow
• Businesses buy supplies outside
• Shoppers buy away
• Taxes SS
• Bad investments
• Investing away

• Inflow
• Sell Outside (Export)
• Bring in Outside Capitol

Eroding Tax Base
Jobs
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How do we go about doing this?
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The first step is?
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What is the first step?

• A Applying for a grant
• B Developing a plan
• C Contacting someone for advice
• D Announce your intentions at the first
  opportunity
• All of the above

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Would you tell me please, which way to go from
here? said Alice. That depends a good deal on
where you want to get, said the cat. I dont
much care where, said Alice. Then it doesnt
matter which way you want to go, said the
cat. Lewis Carroll Alice in Wonderland
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Benefits to planning?

• Establish priorities
• Allocate resources
• Develop your product
• Develop strategies
• Designate your customer market

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New Jobs, Where do they come from?

• 55 Expansion of Existing Business
• 44 Local New Start Up Business
• 1 Relocation of Existing Business

Source Harvesting Hometown Jobs, National
Center for Small Communities.
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Practicing Economic Development EffectivelyHow
do we assist existing businesses
expand?ClueWhy do businesses exist?
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How can we assist new business start
ups?Clues80 of all new jobs come from
micro-enterprises.They have to make a profit to
survive.
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Should we even try to entice new businesses?

• You betcha, if we can do the first two things
  really well this one is easy.

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Attracting businesses

• Its called Marketing
• (external customers)

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Practicing sound economic development is
effectively marketing the product (community) to
internal and external customers and providing
benefits once they buy.
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A bad product, well marketed, will always outsell
a good product that is poorly marketed.
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Shotgun or Rifle?

• Target Marketing
• Business Cluster
• Linkages
• Know your product and strengths
• Think profits for the business

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Marketing Tools?

• Direct Mail
• Trade Shows
• Advertising
• Web Site
• Cold Calls
• Video, CDs

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Fish is nibbling but aint hooked

• Trust
• Confidentiality
• Provide Information
• Provide more information
• Knowledge Integrity
• Team

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Site or Visit Team

• Leader
• Finance
• Government
• Incentives
• Utilities
• Real Estate

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It is OK to say, I dont know, but I will find
out.
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10 Ways to Ruin a Town

• Attend no meetings, instead criticize the way
  they do things.
• Always remind others about the cold winters, hot
  summers and general tough conditions for those
  who live here.
• Complain about the police department, chamber of
  commerce, etc.

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10 Ways to Ruin a Town

• Stay convinced that its not important to attend
  school programs, concerts, ballgames, etc. You
  wont be missed.
• Knock the village board or city council. Talk
  about the kickbacks they must get.

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10 Ways to Ruin a Town

• Stay away from Church. You might attend on
  Easter and Christmas to reassure yourself that
  all who attend are hypocrites.
• Make purchases out of town through Internet, mail
  order, or discount catalogues. these firms
  contribute lots to the community.

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10 Ways to Ruin a Town

• Remind others that the local media are no good
  and have less local news than out of town media.
• Remember that all kids are delinquent, all
  businessmen are crooks, and bad remarks about
  your town are the order of the day.

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10 Ways to Ruin a Town

• Above all, always be skeptical, cynical and
  negative about anything designed for the
  community's progress and betterment.

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(No Transcript)
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Retaining Youth

• Make them stakeholders
• Strong civic organizations and churches
• Prosperous small businesses

Source How to Build Strong Home Towns, American
Demographics, Feb. 1997.
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Prosperous Small Businesses
Jobs
Social Glue
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Trained Workforce? Opinions of Students Vs
Employers.
Source USA Today, Roper Starch Worldwide Inc.
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Every morning in Africa, a gazelle wakes up. It
knows it must outrun the fastest lion or it will
be killed.
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Every morning in Africa, a lion wakes up. It
knows that it must run faster than the slowest
gazelle or it will starve.
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It doesnt matter whether youre a lion or a
gazelle when the sun comes up, youd better be
running.
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How do I learn more?

• Basic Economic Development Course
• EDI (www.aedc.org select Calendar)
• Professional ED Associations
• State ED Agency
• Peer network
• Conferences, conferences, conferences
• Call me, 217-398-5412, x214

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Realization and Commitment to Hard Work
20 Clues
I find that the harder I work, the more luck I
seem to have. Thomas Jefferson
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Thank You!andGood Luck!
Sheldon Keyser, USDA Rural Development Sheldon.Key
ser_at_il.usda.gov