Growth:Growing the Economy,Growing Businesses

Scott Hutcheson, Ph.D.Purdue Center for Regional Development

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The predominant economic development sales pitch has been

• cheap taxes• cheap land• cheap labor• cheap utilities

Average number of Indiana industrial recruitment “projects” annually with a promise of at least 100 jobs from 2007-2011

5IEDC Economic Incentives and Compliance Report for July 1, 2007 – June 30, 2011

Average number of Indiana industrial recruitment “projects” annually with a promise of at least 100 jobs from 2007-2011

6IEDC Economic Incentives and Compliance Report for July 1, 2007 – June 30, 2011

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Average number of Indiana industrial recruitment “projects” annually with a promise of at least 100 jobs from 2007-2011

7IEDC Economic Incentives and Compliance Report for July 1, 2007 – June 30, 2011

5…and Indiana’s one of the “best” in the U.S.

Niche: Existing Business Base

Stage Four: 500+ Employees

Stage Three: 100-499 Employees

Stage Two: 10-99 Employees

Stage One: 1-9 employees

Stage Four: 500+ Employees

Stage Three: 100-499 Employees

Stage Two: 10-99 Employees

Stage One: 1-9 employees

Second Stage Companies• 10-99 employees • Revenue of $750,000 to $10 million• Local owned/controlled• Privately-held businesses• Dealing with growth issues instead of

survival issues• Intent to grow

Tippecanoe County Indiana 2nd Stage Firms 2012

Tippecanoe County Indiana 2nd Stage Jobs 2012

What Do Second Stage Companies Need?

• Information• Infrastructure• Connections

Gibbons, C. (2010). Economic gardening. Economic Development Journal 9.3:5.

• Help in articulating and realigning with their core business strategy

• Market intelligence & GIS to answer important questions

• Guidance on search engine optimization and effective use of social media

• Leadership & management team • development to make sure people are • slotted right

Indiana Business Growth Network

Our Certified IBGN TeamPurdue Center for Regional DevelopmentHoosier Heartland Small Business Development CenterParrish Library of Management & EconomicsErik Deckers, co-author of No Bull-&%$# Social Media

$250K with of databases & analytic tools

The IBGN Process• Companies access IBGN through their LEDO, REDO,

Chamber, etc.• Fill out a Company Profile, sign mutual NDA• Schedule call with IBGN Team Leader (1 hour)• Schedule Call with IBGN Team (1hour)

– Identify 4-5 growth-related questions that need answered– Team does 30 hours worth of work

• Information and communication occurs on a secure website

• Company is contacted 6 months and 12 months afterward

Examples

• Manufacturer needed list of potential customers that meet certain criteria including a commitment to sustainability

• Analytical Test Laboratory needed information about global competitors and ideas to attract more potential customers to their website

For More Information or to Connect

Scott Hutcheson, Ph.D. Purdue Center for Regional Development

Purdue Extension

Purdue University203 Martin Jischke Drive

765-479-7704 (mobile)hutcheson@purdue.edu

www.linkedin.com/in/scotthutcheson/www.twitter.com/jshutch64

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