Gwinnett eg2011, Snellville, Economic Gardening

1. 5/5/11
Economic
Gardening
An
entrepreneur-­‐centered
approach
to
economic
development
Mark
Lange
May
2011
• Na/onal
Opera/ng
Founda/on
– Not
a
grant
making
founda?on
– Currently
ac?ve
in
42
states
– Build
and
deliver
programs
• Approach
to
entrepreneurship
– Entrepreneur
Support
Orgs
– Second-­‐stage
Entrepreneurs
– Economic
Gardening
• Tools
and
programs
– Peer
learning
– Companies
to
Watch
– YourEconomy.org
– Leadership
Retreats
Edward
Lowe
Founda?on
copyright
2010
www.edwardlowe.org
2
Serving our Economy………
Edward
Lowe
Founda?on
copyright
2011
3
1

2. 5/5/11
Thinking differently about!
growing our economy!
Re-balance! Increase Update
economic! attention on services to
development ! Growth! reflect a
strategy
Companies
balanced
strategy!
4
Edward Lowe Foundation copyright 2010
Re-­‐balance
economic
development
strategy
Economic
Gardening
Needed
Emphasis
Current
Emphasis
Exis/ng
Growth
Companies
Startups
Grow
From
Within
Small
Businesses
Recruitment
5
Edward
Lowe
Founda?on
copyright
2010
GwinneO
County
Jobs
By
Stage
%
Jobs
1992
%
Jobs
2008
5.4%
5.3%
16.8%
11.5%
46.4%
33%
29%
42%
2.4%
8.2%
Data
from
Youreconomy.org
2010
2

3. 5/5/11
GwinneQ
County
Jobs
and
Job
Growth
By
Stage
1995
–
2000
Jobs
grew
by
46%
2003
-­‐
2008
Jobs
grew
by
19%
What’s
wrong
with
this
picture?
Between
2001
-­‐2008
as
ESTABLISHMENTS
increase…
JOB
CREATION
decreases
Increase!
attention !
on Growth!
Companies
• Past startup – not mature"
• Privately Held Company"
• 10-99 employees" • Intent and capacity for
Growth"
• 1-50 Million in Revenue"
• External Market Company
• Includes High Growth, High
(Export or Traded Sector)
Potential and Steady
Growth
Edward Lowe Foundation copyright 7
2010
3

4. 5/5/11
Business
Development
–
By
“Stage”
Stage
1
Stage
2
Stage
3
Stage
4
Incubators
serving
stage
1
Edward
Lowe
Founda?on
copyright
2011
10
Business
Development
–“Growth”
Companies
Stage
1
Stage
2
Stage
3
Stage
4
Role
Changes
-­‐
Con/nuous
-­‐
Rapid
-­‐
Ini/al
-­‐
Start-­‐up
Source:
Leading
at
the
Speed
of
Growth
Edward
Lowe
Founda?on
copyright
2011
11
Second-­‐stage
Growth
Companies
Facing
different
issues
through
growth
Stage
1
Stage
2
Stage
3
Stage
4
Edward
Lowe
Founda?on
copyright
2011
12
4

5. 5/5/11
Update
services
to
reflect
a
balanced
strategy
• Tradi?onal
Economic
Development
Services
– Transac?ons
based
services
focused
on
movement
• New
Services
– Informa?on
based
services
focused
on
company
strategy
and
growth
• Economic
Gardening
– Strategic
Research
Teams
– Connec?vity
and
referral
networks
Edward
Lowe
Founda?on
copyright
2010
13
Provide
decision
making
informa/on
with
an
emphasis
on
strategic
issues
100
• “Front
end
loaded”
90
– Core
strategy
80
– Business
Model
– Market
Dynamics
70
– Marke?ng
60
– Capital
-­‐
referral
50
– Labor
–
referral
40
– Export
assistance
30
– Outsourcing
20
– Export
assistance
10
– Outsourcing
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Edward
Lowe
Founda?on
copyright
2011
14
Learn from the
Littleton model
Littleton Technical Assistance Model
• 1990
-­‐
LiOleton,
Colorado
First
Economic
Gardening
Program
• Gradually
built
highly
successful
informa?on
system
for
local
businesses
• Doubled
jobs
and
tripled
tax
revenue
over
20
years
• Gained
na?onal
and
interna?onal
aOen?on
Edward
Lowe
Founda?on
copyright
2011
15
5

6. 5/5/11
Florida
pilot
program
accelerates
“Strategic
Research
Team”
model
• 2009
-­‐
Florida
passes
economic
Strategic
Research
Team
Model
gardening
bill
focusing
on
second-­‐stage
• $1.5
million
Technical
Assistance
Pilot
Program
• ELF
creates
a
“virtual”
LiOleton
model
(SRT)
to
service
companies
and
train
local
team
• Year
one
–
159
companies
create
418
Jobs
• Cost
per
job
$3,416
Edward
Lowe
Founda?on
copyright
2010
16
• Edward
Lowe
Founda?on
agrees
to
host
the
Na?onal
Center
for
Economic
Gardening,
providing
infrastructure
&
technology
• Economic
Gardening
Networks
established
to
offer
“Strategic
Research
Team”
services
for
state
and
regional
pilot
programs
2010-­‐2011
2010-­‐2011
2011
projected
Florida
Regional
Pilots
Missouri
Kansas
Coastal
Georgia
Louisiana
Indiana
–
2-­‐regions
Oregon
Northern
Arizona
South
Carolina
Sudbury
Canada
Others
17
Edward
Lowe
Founda?on
copyright
2010
Economic
Gardening
Strategic
Research
Team
(SRT)
System
Services
and
Program
Management
• Sojware
system
for
online
company
applica?on
and
selec?on,
collabora?on
workspace,
and
project
management
• Turn-­‐key
billing,
invoicing
and
progress
reports
• Typical
engagement
-­‐
35
total
hours
with
(SRT)
at
$105
per
hour
and
$150
set
up
fee
per
company
• Training
and
Cer?fica?on
for
state
or
regional
SRT
programs
and
teams.
6

7. 5/5/11
®
Second-­‐stage
growth
companies
are
underserved
and
under
recognized
for
their
contribu?on
to
net
new
job
crea?on,
economic
growth
and
community
development.
The
founda?on
believes
that
the
Economic
Gardening®
techniques
developed
by
Chris
Gibbons
and
used
by
the
city
of
LiOleton,
CO
provide
the
most
effec?ve
business
growth
services
available
for
growth
company
CEO’s.
Our
role
as
an
independent
non-­‐profit
opera?ng
founda?on
has
allowed
us
to
serve
as
a
catalyst
for
introducing
this
program
and
for
developing
na?onal
standards
and
infrastructure
for
implementa?on.
®
Edward
Lowe
Founda?on
copyright
2010
19
Contact
and
Resources
Mark
Lange
mark@lowe.org
Phone
–
269-­‐783-­‐4255
www.edwardlowe.org
www.youreconomy.org
www.GrowFL.com
www.networkkansas.com
Edward
Lowe
Founda?on
copyright
2011
20
7