Tag Archives: education

Champion the entrepreneurial spirit

Edward Lowe Foundation

Onwards into Michigan to met with the Edward Lowe Foundation and some more incredible hospitality from Dino and the team at the 2,600-acre Big Rock Valley.  The Foundation was established by Ed and Darlene Lowe in 1985 to “champion the entrepreneurial spirit”, after having started and scaled Edward Lowe Industries which invented cat litter.

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Here’s one of the many historic houses on the property.

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The foundation supports the following programs:

All of the above are great tools to utilise depending on what is happening for businesses or locations.  A couple of favourites if I had to pick…

Economic gardening

Economic gardening is “grow from within” strategy targeting existing growth companies and offering them critical strategic information that is customized to their needs.  It was started by Chris Gibbons in Littleton, Colorado who is now the CEO for the National Center for Economic Gardening.  It has achieved some impressive results:

  • “During the 20-year period Littleton practiced Economic Gardening, jobs grew from 15,000 to 30,000, and sales tax revenue more than tripled from $6M to $21M without any recruiting, incentives or tax rebates”.
  • More recently in Utah, 12 companies achieved $16m in sales increases and the creation of 122 jobs, or in Kansas with 28 companies growing both employment and revenue approximately 30% on average.

Data – YourEconomy.org

YourEconomy.org is a very smart tool that gives an overall view of sales, job and business creation.  It drills down to all layers including down to State and most importantly locally.  Pick your favourite location and have a try.

In summary, a couple of insights emerge:

  • Business retention is growth is an often ignored poorer cousin to the more high profile attraction initiatives such as tax incentives.  What a difference can be made in any context by starting with what you’ve got and asking how do you grow?
  • While the Kauffman Foundation (new and young companies) and Edward Lowe Foundation (second-stage entrepreneurs) have slightly different definitions on what companies create the most jobs, they are saying the same thing – entrepreneurs and young companies create the most jobs.
  • Like most places I’ve met the Foundation partners and collaborates with other organisations to achieve their end goal and they have great systems.
  • Data when powered by smart technology showing local information is critical to give context of what is happening in economies.
  • Finally, how do locations educate, retain and attract talent so they create and scale businesses that operate globally?

What makes a Boom Town?

The last couple of days have been in Effingham, Illinois.  Effingham is the home of Jack Schultz, the author of author of Boomtown USA: The 7-1/2 Keys to Big Success in Small Towns and CEO of Agracel, a developer of industrial projects.  Jack and his wife Betinha have been the most outstanding hosts.  Effingham is a community of just over 12,000 people who have committed to creating a better future over a long period of time.  What is most impressive is the difference a few people can make instigating and persevering with projects as times change and reinvention is the new norm. 

I was fortunate to have a number of tours of local businesses.  Pam gave a great insight into the Patterson Technology Center, which started off as a software company and now with a number of activities employs 450 people locally.  It just goes to show how one or two people can create wealth and opportunity for the wider community.  Jack also gave a whirlwind tour of Midland States Bank which has seen some big growth in the last few years and also supports a number of community initiatives (see CEO below).  I even managed a ride on a locomotive.

effingham train

Agracel

Agracel has a great niche in providing development services to Agurb® (rural) communities.  They’ve done over 100 projects in 17 states so see all sorts of approaches to economic development outside big cities.  Some interesting insights were around manufacturers preferring to be in rural locations because of costs, workforce availability and work ethic.  Do manufacturers currently in cities consider relocation?  Anything is possible, it just comes down to people…I’d recommend the BoomTown book for some down to earth ideas.

City of Effingham Economic Development

Todd and the team gave a overview of some of the tools they have in their incentives toolkit, including Business districts, enterprise zones and tax increment financing districts.  Their insight about advantages of smaller locations were simple – quality of life.

CEO (Creating Entrepreneurial Opportunities)

Craig is incredibly passionate about the importance of kids learning entrepreneurship through learning and changing the way kids view the world.  Students have 90 minute classes each day, are integrated with the local business community and every student starts their own business.  It is similar to the Young Enterprise Trust in NZ.  Do you see value if children learning entrepreneurship for 90 minutes a day, even if their business fails at the end of it?  If you fancy yourself as an entrepreneur, take the Gallup Entrepreneurial Profile 10.

Tuscola Chamber and Economic Development, Inc. (TCED)

The last session of the day was with the very passionate and saavy Brian.  After years of hard work, they have recently secured investment in a Cronus $1.4b fertiliser plant.  Brian gave his thoughts on success – knowing your local strengths, learning from failure, community engagement and just how much of a long term commitment economic development is.  He is another believer in the small town advantage.