elkhart edc
TRANSCRIPT
Second Stage Companies
Growth Issues vs Survival
Intent to Grow
Capacity to Grow
Enterprise Composition
Privately Held Businesses 10-99 Employees Revenue $1 M to $50 M Double-Digit Rate of Growth
Importance of Second-Stage Companies
Create jobs
Attract money
Attract talent
Drive culture
Drive community direction
Affect philanthropy
Drive policy decisions through identified needs
Understanding the Second-Stage Entrepreneur
If you really want to understand, you must listen and be willing to look beyond the obvious.
How to Spot a Second-StagerMoves fast and faces complex problems, often many at the same time
Not attracted to traditional ways of learning
Content must be relevant instead of unique
Need to build systems so they can step away from the business
Too much business can trip them up faster than too little – capacity issues
Hard to gain their trust / High Trust level of Peers
Easily frustrated by bureaucracy
Process everything through the lens of their business
May love creating but not managing
Very positive
Strong internal locus of control
Does Your Culture Look Like Theirs?
Do you listen to ideas, then act and implement quickly?
Can you live with making mistakes?
Are you willing to change some of your direction to serve your audience?
Do you understand outside audiences well enough to find and match resources?
Is it OK if you don’t know everything?
Our Role in Second Stage
Spreading the word
Research and data analysis
Program development
Community convener
Your Economy
Longitudinal Database
15 Years / 37 Million records
Key Measurements:
Resident Enterprises
Non-Resident Enterprises
Non-Commercial Enterprises
Births and Deaths of Establishments
Impact on Jobs
Document ARelationships of Establishments to Jobs
1. Nonresident Companies had the highest % change (-6.2%) compared to other establ ishment cr i ter ia (the only one with a negat ive number)
2 . Nonresident Companies had the largest change in the number of jobs (-8.1%)
3. Number of Resident Companies grew by 4.6% in that t imeframe
4. Resident Companies added 2.7% of jobs
Document B Net New Establishments
OPENED RESIDENT ESTABLISHMENT grew 3.86 %
Relocated firms fell 0.16%
Net New Establishments grew 3.7 %
Mostly from first stagers ( 384 )
Net New Jobs“Opened” establishments lost 4.3% of the jobs
Expansion of companies added 3.42% of the jobs
Relocated establishments had a negative impact -.03 on jobs
Net new jobs was -.09%
Document B continued
How much worse would it have been without expansion of existing firms ?
The Bottom Line
Do you know who the growth oriented “expansion” companies are?
Do you know “how” you add value to these establishments?
How do you help first stages make the “leap” to second stage?
How do you help Second-stagers sustain and thrive?
Job growth comes from “resident” company expansion
Economic Gardening provides resources to growth oriented “Resident” companies