Selecting a BR & E Model
Ten Questions to Guide the Process
2004 RCCI INSTITUTE
August 2004
Kathleen Tweeten
North Dakota State University
(701) 328-9718
ktweeten@ndsuext.nodak.edu
Henry Cothran
University of Florida
(352) 392-1826 ext 409
hmc@ifas.ufl.edu
What is Economic
Development?
“Economic development is the process of
creating wealth through the mobilization
of human, financial, capital, physical and
natural resources to generate marketable
goods and services. The developer’s role
is to influence the process for the benefit
of the community.”
American Economic Development Council
What is the Goal of Economic
Development?
Jobs
Income
Quality of life
How can you accomplish the
goal?
Attract
Create
Retain
Expand
Why Engage in Business
Retention and Expansion?
 Every economy looses about 10 % of its jobs
annually.
 Studies show that up to 80 % of net new jobs come
from existing businesses.
 Identify concerns, issues, and opportunities for
business in our communities.
 Improve the overall climate for investment,
employment, and competitiveness.
 Prevent overlap and duplication in government's
dealings with business.
TWO BR&E MODELS
VOLUNTEER
PAID
“VOLUNTEER”
 Developed by New
Jersey Bell (Late 70s)
 Refined, expanded
and popularized by
Extension in WV,
Ohio, Minnesota
 Widely used by
Extension (30 + states)
 Booklets describing
process published by
NERCRD (1998)
 Many other “How to”
manuals published
(USDA, TX, WV, ND, UT, MN, etc.)
 Wrongly described as
a rural only program
“VOLUNTEER”
 Relies primarily on

volunteers to manage
program and collect data

 Relies primarily on
Higher Education entities
for training and technical

assistance
 Important benefit is
building community
capacity
Generally has a 3-year
lifespan
Awareness and
increased use through
BREI
Used to certify
“consultants”
“PAID”
 Operated by ED or  May involve
Chamber offices
partnerships with
 Involves one or more other ED
organizations
paid staff
 Focuses on a limited
 Does not involve
“volunteers” to assist number of businesses
annually
paid staff
“PAID”
 Targets major
employers
 Primary goal is to
address immediate
problems
 Rarely results in
long range BR&E
ED plan
 Does not attempt to
build local capacity
 Usually does not
involve non-ED folks
in the “business” of
economic
development
Now that we’ve introduced and
described two general approaches
to organizing a BRE program, how
do you go about selecting and
adapting one of these approaches to
your community?
Initiating the Process
1. Who are the key actors in the
community?
2. Who do you select as partners
for economic development?
3. What is the community’s
economic base?
Initiating the Process
4. What is the proposed or actual
service area?
5. Does the community have a
comprehensive economic
development strategy that
includes BR&E as a vital
component?
Implementing the Program
6. Where will the program be
housed?
7. How will the program be
staffed?
8. How will the program be
funded?
Implementing the Program
9. What services will be
offered?
10.What external sources of
business assistance exist and
where are they?
Identify key actors and
potential partners
 What is the scope of your program?
 What is the proposed role of the partner?
 What can the partner bring to the table?
 Personnel
 Financial support
 Does the partner share the community vision?
 Is the partner willing to work collaboratively?
Do you have a Comprehensive
Economic Development Plan?
 YES. You are ready to move forward.
 NO. You need to ask and answer:
 Where are we now?
 Where do we want to be?
 How do we get there?
Where is the community now?
 Develop a community profile.
 Develop background information on
the current economic situation.
 Ensure broad community involvement
in planning.
What’s a Community Profile
and what’s in it?
Available infrastructure
Services available to businesses
Socio-economic data
Quality of life data
Describe Current Situation
Economic Performance Data
Business Vitality Data
Development Capacity Data
Environmental Health Data
International City/County Management Association Harvesting Hometown Jobs, p. 18.
Current Local Situation
 Geography
 Natural resources and
environment
 Population
 Labor force
 Educational/technical
resources
 Infrastructure
 Housing availability
 Commute to work
 Employment by sector


Growth sectors
Declining sectors
 Community strengths
and weaknesses?
 What is driving the local
economy?
 Where is it headed?
Current National Situation
 Employment by
Sector
 Growing
 Declining
 Long-term economic
forecast
 Opportunities and
threats
 Population migration
trends
 What national trends
and forces impact the
local economy?
 What is driving the
national economy?
 Where is it headed?
Where Do We Want to Be?
 What are the future infrastructure plans?
 Develop a vision for the future. (Where do
you want to be in 10 to 20 years?)
 Develop an action plan (including specific
projects to implement) to achieve the vision.
 Develop benchmarks and an evaluation plan
Housing the Program
 Public
 Private
 Partnership
Staffing the Program





Paid Staff
Outside Consultant
Elected Officials
Volunteers
Combination of above
Funding the Program
 Public funds
 Private funding
 Combination
Programs and Services to be
Offered
 Financial assistance
 Workforce
development
 Technical assistance
 General training
 Specialized training
 Workshops
 Business appreciation
events
 Business roundtables
 Industry research
 Business-to-business
links
 Other
External Sources of Business
Assistance?







Public schools
Vocational school
Community College
University
Workforce Board
Local agencies
Regional agencies




State agencies
Federal agencies
Financial institutions
Other private
organizations



SCORE
_________________
_________________
Checklist for Establishing Your
Community’s BR & E Program
 Have you determined the programs and services you
need to and can offer existing businesses?
 Have you identified sources of technical, educational
and financial assistance?
 Does the community have a “vision” for economic
development that includes retention and expansion as a
vital (and equal) component?
 Does the community have the capacity to implement
the program?
Determining Community
Capacity
Is the community ready?
If not:

What needs to be done to build
capacity?
What’s the Bottom Line?
The form that works best … is a
function of many factors, including
community size, economic
circumstances, local development
objectives, and the level of
commitment of public and private
sectors to economic improvement.”
Alan Gregerman (Research Director, CUED)
Questions?
Suggested Reading
What is Economic Development? A Primer,
National Council on Economic Development, Washington, D.C.
Harvesting Hometown Jobs The New Small Town Guide to Economic
Development
(1997) National Center for Small Communities, Washington, D.C.
Business Attraction and Retention: Local Economic Development Efforts
(1996) Kotval, Mullin & Payne, International City/County Management
Association, Washington, D.C.
Economic Development: Strategies for State and Local Practice
(2003) Koven & Lyons, International City/County Management
Association, Washington, D.C.