Welcome: Clay County EDC Strategic Planning meeting April 25, 2013

1. Welcome:Clay County EDC Strategic Planning meeting April 25, 2013

2. Co-ChairsGreg Canuteson& Jerry Nolte

3. Mr.Dell Gines

4. Grow Your Own Economic DevelopmentWhat It Is, Why It Is Important Dell Gines, MBA, CeCD Sr. Community Development Advisor Federal Reserve Bank of Kansas City The views in this presentation do not represent the views of the Federal Reserve Bank of Kansas City nor the Federal Reserve System. 4.26.13 Clay County Economic Development

5. Grow Your Own At the Kansas City Federal Reserve Bank we are taking a particular interest in entrepreneurship based economic development strategy. We believe this strategy can have a significant impact in supporting the economic growth needs of our region’s communities. We encourage thoughts and feedback by practicing economic developers as we continue to support our local communities. The Grow Your Own Guide provides a high level overview of what it takes to conduct grow your own economic development.

6. Grow Your Own Economic DevelopmentWhat It Is, Why It Is Important Dell Gines, MBA, CeCD Sr. Community Development Advisor Federal Reserve Bank of Kansas City The views in this presentation do not represent the views of the Federal Reserve Bank of Kansas City nor the Federal Reserve System. 4.26.13 Clay County Economic Development

7. Topic Overview • What is grow your own economic development? • Why is this form of development important? • What are the distinctions of grow your own models from traditional attraction based development? • What is an entrepreneurship ecosystem?

8. Economic Development Matters Definition of Economic Development “…commonly described as the creation of jobs and wealth, and the improvement of quality of life. Economic development can also be described as a process that influences growth and restructuring of an economy to enhance the economic well being of a community.” – International Council of Economic Development

9. Economic Development Matters “Fostering a dynamic environment where economic opportunities can be discovered, taken advantage of and maximized to their fullest extent to create balanced and sustainable growth, a positive sense of ‘place’ and an improved quality of life in a defined geographic region.” – Dell Gines Grow your own economic development focuses on creating a local economic development ecosystem that supports the creation, growth and longevity of businesses to achieve economic development goals.

10. Why Grow Your Own Models of Economic Development? A few reasons why grow your own development is a powerful tool: • Entrepreneurs create jobs, increase local incomes and wealth (Henderson, 2002). • A higher ratio of entrepreneurial activity is associated strongly with faster growth of local economies (Barth, Yago & Zeidman, 2004) • Entrepreneurs connect communities to the larger, global economy. • Local entrepreneurs are more likely than branch plants to reinvest their wealth locally. • Entrepreneurs create a sense of place. • The cost of job creation is lower (Edmiston, 2006) • Entrepreneurship allows our emerging senior populations to continue to be productive and add economic value to local economies. • Grow your own development is a more feasible way to develop traditionally economically challenged areas. • Grow your own development helps create diversified economies. • This kind of development is just a better “fit” for certain communities.

11. Development Model Distinctions

12. The Five C’s of the Entrepreneurship Ecosystem

13. The Transparent Ecosystem

14. The Dense Ecosystem Ecosystem #1 - Sparse Ecosystem #2 - Dense Are the programs, policies and activities sufficient in number and type to meet development goals?

15. Entrepreneurial Opportunity Cost Simply stated, an opportunity cost is the cost of a missed opportunity. – inc.com How more productive could our businesses be if they had more time and energy to focus on growing? The strongest entrepreneurship development ecosystems do the best job of allowing existing and potential entrepreneurs to spend more time and energy 1) focusing on building the business and 2) becoming more effective business owners rather than wasting time figuring out how to get support, information, and resources to build the business.

16. Effective Ecosystem Model Dense Ecosystem Foggy Ecosystem Transparent Ecosystem Sparse Ecosystem

17. Final Thoughts • The Federal Reserve Bank of Kansas City’s role is to simply provide information and help exchange ideas and conversation. We do not make economic development recommendations but can make connections to other agencies or resources. • Each community has to develop their own unique and particular development strategies that fits their region and goals. • Grow your own models of development can be a valuable addition to your development strategy contingent on your goals.

18. Contact Dell Gines, MBA, CeCD Sr. Community Development Advisor Federal Reserve Bank of Kansas City dell.gines@kc.frb.org (402) 221-5606 For more information & resources http://kansascityfed.org/community/ To sign up for our bi-monthly email please email the address above

19. Citations Building Rural Economies with High-Growth Entrepreneurs – Henderson, 2002 Stumbling Blocks to Entrepreneurship in Low and Moderate Communities – Barth, Yago & Zeidman, 2005 The Role of Small and Large Businesses in Economic Development – Edmiston, 2007

20. Welcome Strategic Planning Team Maple Woods College April 25, 2013

21. Clay County Economic Facts • Wages • Employment • Economic Share • The economic share is measured as the average of the percentage of the state's employment, population, and personal income that occurs in a particular county.

22. Wages

23. Employment in Clay County

24. Economic ShareMissouri Counties’ Contribution to the State’s Economy

27. 2013 Business Retention & Expansion Survey Executive Summary Clay County Economic Development Council Jim Hampton, Executive Director “Maximizing Economic Well-Being and Opportunity in Clay County, Missouri”

28. Survey Background • Synchronist Survey • A national system used by more than 900 economic development organizations in 32 states • This is the 10th year the Clay County EDC has utilized this survey

29. What do we look for? What is the company’s level of satisfaction with the community and its services? Do any existing or emerging problems in the community pose a threat to existing or potential businesses? Is the company at risk of downsizing or relocating?

30. What do we look for? What is the growth potential of the company? • • •• Are there untapped marketing opportunities (e.g., industries, companies, strategies) that could be leveraged for attracting new businesses to the community? What is the company’s value to the community?

31. Why Existing Companies? 90% of the new jobs and 100% of the existing business tax base come from existing companies!

38. Public Service Clay CountyNational 2006200720082009201020112012 5.36 5.37 5.56 5.63 5.84 5.61 5.64 5.19 Guide 3.5 Average 4.0 Above Average 5.0 Good 6.0 Excellent 7.0 Perfect

39. Employment Needs 20082009201020112012 Increasing 43% 35% 38% 32% 31% Stable 54% 62% 62% 68% 67% Decreasing 3% 9% 0% 0% 2% Increasing/Stable97% 91% 100% 100% 98%

43. Failure to attract new jobs is unfortunate,but the loss of existing employment can be tragic

44. Your community’s BEST companiesareYour competitor’s BEST prospects!