# Presentation: 375431

## Economic DevelopmentAn Emerging ProfessionHow to practice it effectively.

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

## Sheldon Keyser, CED IllinoisUSDA Rural Development

## My Town

## Economic Development is an “emerging” profession.

- Economic Development is an “applied science.”         Dr. Robert Koepke CED

## Good

- Ole
- Boy.

## Originally practiced by: 

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

## Economic Development was initially funded by and served private interests.  Now the profession gets public support and serves both public and private interests. 

## Knowledge Skills the ED Professional must have.

- Computer
- Construction
- Creative Writing
- Economics
- Education Development & Job Training
- Engineering

- Economic Development Tomorrow, AEDC 1991

## Knowledge Skills the ED Professional must have.

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

- Economic Development Tomorrow, AEDC 1991

## Knowledge Skills the ED Professional must have.

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

- Economic Development Tomorrow, AEDC 1991

## 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

## Economic Development

- Keep the wealth we have
- Add new wealth

- Jobs                                           Tax Base

## The Rusty/Leaky Bucket Concept

- Eroding Tax Base

- Jobs

- _Inflow_
- Sell Outside (Export)
- Bring in Outside Capitol

- _Outflow_
- Businesses buy supplies outside
- Shoppers buy away
- Taxes & SS
- Bad investments
- Investing away

## How do we go about doing this?

## The first step is?

## 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

## “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 don’t much care where,” said Alice.**
**“****Then it doesn’t matter which way you want to go,” said the cat.**
- Lewis Carroll
- Alice in Wonderland

## Benefits to planning?

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

## 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.

## Practicing Economic Development EffectivelyHow do we assist existing businesses expand?Clue:Why do businesses exist?

## How can we assist new business start ups?Clues:80% of all new jobs come from micro-enterprises.They have to make a profit to survive.

## Should we even try to entice new businesses?

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

## Attracting businesses

- Its called Marketing
- (external customers)

## Practicing sound economic development is effectively marketing the product (community) to internal and external customers and providing benefits once they buy.

## A bad product, well marketed, will always outsell a good product that is poorly marketed.

## Shotgun or Rifle?

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

## Marketing Tools?

- Direct Mail
- Trade Shows
- Advertising
- Web Site
- Cold Calls
- Video, CD’s

## Fish is nibbling but ain’t hooked

- Trust
- Confidentiality
- Provide Information
- Provide more information
- Knowledge & Integrity
- Team

## Site or Visit Team

- Leader
- Finance
- Government
- Incentives
- Utilities
- Real Estate

## It is OK to say, “I don’t know, but I will find out.”

## 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.

## 10 Ways to Ruin a Town

- Stay convinced that it’s not important to attend school programs, concerts, ballgames, etc.  You won’t be missed.
- Knock the village board or city council. Talk about the “kickbacks” they must get.

## 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.

## 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.

## 10 Ways to Ruin a Town

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

## Slide 36

## Retaining Youth

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

- Source: _How to Build Strong Home Towns_, American Demographics, Feb. 1997.

## Prosperous Small Businesses

- Jobs                                          Social Glue

## Trained Workforce?  Opinions of Students Vs Employers.

- Source USA Today, Roper Starch Worldwide Inc.

## Every morning in Africa, a gazelle wakes up.

- It knows it must outrun the fastest lion or it will be killed.

## Every morning in Africa, a lion wakes up.

- It knows that it must run faster than the slowest gazelle or it will starve.

## It doesn’t matter whether you’re a lion or a gazelle—

- when the sun comes up, you’d better be running.

## How do I learn more?

- Basic Economic Development Course
- EDI  (_[www.aedc.org](http://www.aedc.org/)__ select Calendar)_
- Professional ED Associations
- State ED Agency
- Peer network
- Conferences, conferences, conferences
- Call me, 217-398-5412, x214

## Realization and Commitment to Hard Work

- 20 Clues

- “I find that the harder I work,
- the more luck I seem to have.”
- Thomas Jefferson

## Thank You!andGood Luck!

- Sheldon Keyser, USDA Rural Development
- Sheldon.Keyser@il.usda.gov