Grow Local Entrepreneurs with Economic Gardening

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Michael StumpfPlace Dynamics

Joshua ClementsUW-Extension

2011 Wisconsin Conference on Downtown Revitalization

October 20, 2011Fond du Lac, WI

• Economic Development framework:– Based upon Entrepreneurship, rather than recruitment– Utilize knowledge and culture, rather than incentives– Provide market research and technical assistance to

growth-oriented small businesses• “connects entrepreneurs to resources, encouraging the

development of essential infrastructure and providing entrepreneurs with needed information” (Kauffman Foundation)

What is Economic Gardening?

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Three Basic Elements

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• Market Information: Provide access to critical information needed by businesses to survive and thrive.

• Infrastructure: Develop and cultivate an infrastructure that goes beyond basic physical infrastructure and includes quality of life, a culture that embraces growth and change, and access to intellectual resources, including qualified and talented employees (educational, cultural, recreational amenities).

• Connectivity: Develop connections between businesses and the people and organizations that can help take them to the next level business associations, universities, roundtable groups, service providers and more.

(Edward Lowe Foundation)

Economic Gardening

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Foster Entrepreneurship Clusters -• Provide community and knowledge resources for a culture of

entrepreneurship- for both new and ‘serial’ entrepreneurs.• Provide Support for Second-Stage Businesses, where

Entrepreneurial Ventures Typically fail• Aid Entrepreneurs begin new ventures through technical support• Aid Entrepreneurs/Owners in making transition from start-up to

second stage• Partner new ventures with older existing firms to develop local

supply chain (ideas, expertise, and product)

Economic Gardening Tools

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• “Traditional” Community Market Analysis• Economic Leakage Studies• Innovative Downtown Businesses• Asset Quilting• Community Placemaking

Organizational Development

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• No Perfect Formula!• Tailor to local conditions, assests, and leadership

• All about Collaboration• Local Chamber(s) of Commerce• Downtown Organization• Economic Development Corporation• Local/Regional Universities and Tech Colleges• Public Partners (Municipalities)• Private Sector Supporters• UW – Extension

Organizational Development

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Important Considerations• Organization Asset Mapping

• If we begin a entrepreneurship chapter/organization, who is responsible? Host organization?

• Local Benefactors & Mentors• Business Development Resources• Long Term Commitment

Why Downtown?

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• In a global economy, place remains as important as ever• Downtown is the natural community center & gathering place• Proximity to other new and existing businesses• High visibility, accessibility

BRINGING BUSINESS DOWNTOWNThe Market and Opportunity

For Co-Working

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• Small businesses are the foundation of our economy • Knowledge-based businesses are the future drivers

of economic growth• Co-working is an effective business growth strategy• Downtown locations offer distinct advantages to the

kinds of businesses we want to grow

An Overview

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• Nine out of ten US businesses have fewer than four employees

• More than half of all businesses are home-based– $62,500 vs $178,200 (SBA)

• These businesses play an important role in our economy, innovation, and job creation

The Importance of Small Business

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Knowledge-Based Businesses• Use knowledge and creative abilities to produce

output – engineering, graphic design, marketing, industrial design, software, etc.

• This work is found in all sectors, but especially:– Professional, scientific, and technical services– Management of companies and enterprises– Information

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The Milwaukee Metro Market• Target sectors within the Milwaukee area:

– 5,267 sole proprietorships– 6,041 businesses with fewer than ten employees– 1,924 emerging entrepreneurs (in progress)– 5,831 potential entrpreneurs (considering)– 19,063 total

• 121,253 existing or potential businesses in all sectors

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Who Do We Want to Grow?• Existing businesses as well as start-ups• Solo to micro-businesses (<4 employees)• Knowledge and creative sector businesses• Businesses selling outside of the local area• Growth-oriented businesses

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What Do These Businesses Need?• Access to specialized resources (software, office

equipment, etc.)• Professional presence - office and conferencing

space, support services• Marketing assistance – sales!• Technical assistance• Networking and mentoring

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The Business Development Concept• A regional or statewide collaboration• Business support and accelleration delivered through

existing providers (SBDC, technical colleges, others)• Tailored support delivered through the collaboration• A regional network of co-working centers providing

professional office space, an energetic and collaborative work environment, and access to specialized resources

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What is Business Acceleration?

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Business accelerators provide a range of services intended to spur the more rapid growth of existing businesses. Unlike incubators, they tend not to “graduate” firms, but assist them throughout their growth phase.

What is Co-Working?

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Co-working centers are shared spaces in which solo businesses, freelancers, contractors, or small businesses set up shop. They typically provide a range of spaces target to the needs of different clients, such as desks, single offices or suites, conference rooms, studios, and specialized facilities. Space may be leased by the day, week, or month depending on the space and the needs of the client.

The Benefits of Co-Working

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• Opportunities for networking, inspiration, and collaboration among participating businesses

• Professional setting lending credibility to the business and keeping business owners “on task”

• Access to specialized services, technology, or other resources targeted to specific industry sectors

• Platform for delivering acceleration services

Why a Downtown Location?• The right environment for these businesses:

– Proximity to other successful small businesses– Proximity to services, dining, coffee (Third Place)– Vibrant and creative atmosphere of downtown– Potential to provide unique space

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How Does Downtown Benefit?• Businesses starting and growing downtown:

– Reinforces the role of downtown as an informal business incubator

– The incubator is an anchor for downtown– Incubator tenants and clients shop, purchase

services, and dine at downtown businesses– Growing businesses move into downtown space

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Next Steps• Identify potential partners

– Market feasibility at the participant level• Define operating structure

– Not for profit corporation?• Fiscal feasibility, business plan, and funding

– Site selection and design• Begin to develop co-working centers

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Questions

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Michael StumpfPlace Dynamics

Joshua ClementsUW-Extension

Grow Local Entrepreneurs with Economic Gardening

2011 Wisconsin Conference on Downtown Revitalization

October 20, 2011Fond du Lac, WI