Selecting a BR & E Model
10 Questions to Guide the process
2004 SCED Conference
May 20 – 21, 2004
Hank Cothran
commdev@ufl.edu
Food and Resource Economics
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
 “Economic development is a process that influences
the growth and restructuring of an economy to enhance
the well-being of a community.”
National Council on Urban Economic
Development, Washington, D.C.
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, problems, 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
TRADITIONAL
CONTINUOUS
These two terms come from David Kraybill at Ohio State University to
describe the way BRE is done throughout the nation.
“TRADITIONAL”
 Developed by New
Jersey Bell
 Refined, expanded
and popularized by
Extension in WV,
Ohio, Minnesota
 Widely used by
Extension (30 + states)
 Booklets published by
NERCRD
 Many other “How to”
manuals published
(USDA, TX, WV, ND, UT, MN, etc.)
 Method used to certify
BRE “consultants”
“TRADITIONAL”
 Adapted model used  Focuses on building
in Canada (Ontario)
human and social
 Relies solely on
capital
volunteers to manage  Often thought of as
program and collect
a
“rural”
program
data
 Relies on Extension  Has a 1.5 to 2 year
for all other activities life-span
“CONTINUOUS”
 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
“CONTINUOUS”
 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
Initiating the Process
1. Who are the key actors in the
community?
2. Who and how do you select as partners
for economic development?
3. Does the community have a
comprehensive economic development
strategy that includes BR&E as a vital
component?
Initiating the Process
4. What is the community’s economic
base?
5. What is the proposed or actual service
area?
 Community size
 Geographic area
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:
1. Where are we now?
2. Where do we want to be?
3. How do we get there?
Where is the community now?
 Prepare a community profile.
 Develop background information on
the current economic situation.
 Ensure broad community involvement
in planning.
Develop a Community Profile
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
Implementing the Program
6. Where will the program be housed?
7. How will the program be staffed?
8. How will the program be funded?
9. What services will be offered?
10.What external sources of business
assistance exist and where are they?
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
_________________
_________________
Establishing a Business Retention
and Expansion 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.