What Local Governments Can Actually Do to Help Small Businesses July 2014
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This slide deck comes from a presentation that I gave on behalf of Lorman Education in July 2014. The session focused on helping government and nonprofit professionals understand some of the issues that create barriers to communication between businesses and administrators, and it examined some concrete ways in which governments and community nonprofits can directly improve their local small business environment. To learn more about the Wise Economy approach to economic revitalization and local economy growth, check out wiseeconomy.com. The webinar is still available for purchase through Lorman; check out http://www.lorman.com/archive/392921 for options.
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What Local Governments Can Actually Do to Help Small Businesses July 2014
- 1. Leaders or Feeders: What Governments Can Do To Help Grow Small Businesses Della G. Rucker, AICP CEcD Principal, Wise Economy Workshop Wiseeconomy.com LocalEconomyRevolutionbook.com www.wiseeonomy.com
- 2. Your Presenter • All those letters? • Economic Revitalization/Public Engagement • Building: Communities that work long term– – Strong economy – Resilient economy – Invested people www.wiseeonomy.com
- 4. Not all small businesses are the same www.wiseeonomy.com
- 5. What’s With Them? Understanding why governments and small businesses don’t understand each other (or, Governments are from Alpha, Small Businesses are from Beta) www.wiseeonomy.com
- 6. The World of a Small Business • Independence • Over-capacity • Speed • Myopia www.wiseeonomy.com
- 11. And… the world of local government • Responsibility • Protecting • Scrutiny • Caution www.wiseeonomy.com
- 17. What does that sound like? “Why do I need to follow that regulation/get that permit/live by your rules?” “Just get out of my way and let me run my business.” “You’re taking too long!” “That’s what the regulation says.” “You can’t have an exception.” “This is the process.” www.wiseeonomy.com
- 18. Two Models: Leaders or Feeders • Brad Feld, Startup Communities – Boulder, CO – Tech – “Entrepreneur Ecosystems” – “Government should always be Feeder, not Leader.” – [Government can’t do entrepreneurship right – only entrepreneurs can] – [Economic development is a waste] www.wiseeonomy.com
- 19. Hm. • Della sez: – Tech = subset of small business – Small businesses have a much wider range of needs than tech alone. – Ecosystems aren’t just for tech dudes – Local government has a unique role, unique perspective, unique assets. Needs to be part of the equation. – Feeding does not equal useless. Everything needs to eat. www.wiseeonomy.com
- 20. Leaders |Feeders • Control • Direct • Requirements • Hierarchy • Reporting • Make it Happen • Credit • Support • Guide • Resources • Network • Information Sharing • Help it happen • ? www.wiseeonomy.com
- 21. Leaders |Feeders • Recruitment • Sales • Star Chamber • Confidential • Small # Big Projects • Large Money to Small # • Staff spends time on a few big businesses • Connection • Share information • Everyone we can get • Transparent • Large # Small Projects • Small money to large # • Staff spends time on… www.wiseeonomy.com
- 22. Consider the Practical Matters: • More small businesses + less staff and budget = … a big problem for local governments. • More demand for transparency (read: everyone can be their own investigative reporter) = higher risk in “confidential” plans and deals. • More economic dependence on small businesses = more dependence on businesses that are overextended, not always seeing the whole picture, and often flying by the seat of their pants. www.wiseeonomy.com
- 23. Therefore, we need to change: • Small number of intensive interactions to large number of less intensive “touches” • Build self-reinforcing connections – networks • Enable, within reason • Open up. • Partner. • Focus on what we uniquely bring to the table www.wiseeonomy.com
- 24. The Big Secret • Most of the time we can make a better impact on our local economy and community if we take a Feeder Role, rather than a leader. – Feeder =/= passive or unimportant. – Feeder = adding necessary energy to system. • But in some situations, we need to be a Leader. More on that shortly. www.wiseeonomy.com
- 25. The Care and Feeding of Small Businesses www.wiseeonomy.com
- 26. OK. So what do local governments “uniquely bring to the table?” • Convening power • Connector • Attention-Getter • Space owner • Big picture view • Fair Rules Administrator • Resource-sharer • Partnership-builder www.wiseeonomy.com
- 27. So what can we do? • Convene Connecting events: – Not just “Networking” – Useful information – Shared group exploration • Your Role – Host – Structure – Institutional memory • Example: Annapolis EDC www.wiseeonomy.com
- 28. So what can we do? • Direct popular/media Attention to small business ecosystem – You have it, they don’t – They want it/need it • Your role: – Story-finder – Media/business connector • Example: Brimfield, Ohio Police Department www.wiseeonomy.com
- 29. Give ‘em a little Space • Types of space – Work space – Selling space – Meeting space • Your role: – Space finder – Space promoter – Space manager • Example: Allegheny Valley EDC Makerspace • Example: Findlay Market, Cincinnati www.wiseeonomy.com
- 30. Fair Rules Administrator • Communicate permit/license/zoning/etc. processes – Communicate clearly – the how and the why – They want to know what to expect – Make it predictable • Your role: – Make it clear – Make it consistent – Make it fair www.wiseeonomy.com
- 31. Resource Director • You have: – Connections to state – Connections to foundations – Connections to other businesses/people in community • Your role: – Tell them what’s available – Tell them more than once – Connect them – Help them research new avenues for help • Example: Ann Arbor SPARK Virtual Business Advisor www.wiseeonomy.com
- 32. Partnership-Builder • You know who else is working on what in your community. • Your small business people don’t • Your Role: – Connect your powers with those of other organizations. – Make it happen www.wiseeonomy.com
- 33. When do you have to Lead? • Your community needs entrepreneurs and small businesses but they’re not thriving. • Your small businesses seem dispirited, tired, burned out or just worn out. • No one else in the community is stepping up to the plate • Example: Kalamzoo, MI www.wiseeonomy.com
- 34. Tips for Leading • Don’t do it alone • Pull in everyone you can get • Share problem identification and strategy development • Share jobs • Maintain long term horizon • Test programs before big investments • Be ready to shift to Feeder • Don’t worry if small business people don’t show up right away www.wiseeonomy.com
- 36. Thank you! For more information: www.wiseeconomy.com www.localeconomyrevolutionbook.com Twitter: @dellarucker Also on LinkedIn, Facebook, SoundCloud, YouTube, etc. www.wiseeonomy.com