Module Six Reflecting on the Previous Session What did you find most useful or valuable What progress have you made since then Any questions or clarification needed Overview of Module Six Identify the economic leaks in the region ID: 556823
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Slide1
Exploring Strategies for Enhancing the Regional Economy
Module
SixSlide2
Reflecting on the Previous Session
What did you find most useful or valuable?
What progress have you made since then?
Any questions or clarification needed?Slide3
Overview of Module Six
Identify the economic leaks in the region
Explore basic avenues for strengthening clusters
Provide an overview of some specific strategies within each avenue
Select some potential directions for the region to exploreSlide4
Import Substitution
Substituting
externally
produced goods and services with those that are
locally
produced, putting regional money
to work
in the region. Slide5
The Leaky Bucket
The Regional
Economy
Purchases of Goods or Services out of the RegionSlide6
Plugging the LeaksSlide7
Strengthening Clusters Through Import Substitution
Identify:
Industries that support the cluster
Goods and services being purchased from outside the region
Capacity for supplying these inputs regionally
Resources needed to help promote the creation, expansion, retention or attraction of businesses to supply inputsSlide8
Labels
Identify Potential Leakages and Opportunities for New Businesses
Wine
Zero inputs available regionally
Small % of inputs available regionally
Large % of inputs available regionally
100% of inputs available regionally
Grapes
Research
I
Irrigation
System
Fertilizer
AdvertisingSlide9
Example: Strengthening the Hospital SectorSlide10
Growing Your Region’s Cluster
Identify:
Industries composing the cluster
Imports (Leakages)
Regional capacity
Potential growth opportunities
Appropriate response strategiesSlide11
C.A.R.E for the Cluster
Source:
Barta
, et al (2010) CARE ModelSlide12
Creation
Growing new enterprises locally to fill the gaps of goods and services purchased from outside the regionSlide13
Creation: Providing Regional Support
Community Support
Entrepreneurs
Intellectual Stimulation
Access to Capital
Education
Information
Connections
& Networks
Infrastructure
Services
& Amenities
Source:
Based
on Reynolds, et. al., Small Business Economics 23: 263–284, 2004. Slide14
Creation: Sample Strategies
Regional training
Business coaching
Youth entrepreneurship
Business incubatorsSlide15
Attraction
Attraction seeks to reduce leakages by recruiting into the region firms that can supply missing goods or services that support the cluster.Slide16
Attraction: Targeting Effectively
Past:
Blindly attracting industry
Now:
Targeting businesses likely to be successful in the regionSlide17
Attraction: Location Models
Analyzes the probability of an industry moving to the region
Evaluates the region’s ability to respond to industry needs
Selects industries with the highest likelihood of successSlide18
Attraction:Community Business Matching Model
Community
Business
Assets
Needs
Profile
Goals
The
Ideal
Source:
Cox et al., 2009 Slide19
Attraction: Targeted Regional Economic Development (TRED)
TRED is:
An economic development strategy
A planning processContent including data analysis and interpretation
Source: Goetz,
Deller
, Harris (2009)Slide20
Attraction: Our Region
Past successes
Past challenges
Potential attraction strategies related to regional clustersSlide21
Retention & Expansion
Supporting existing businesses within a cluster so that they can survive and thrive is another avenue for stopping or preventing cluster leakages.Slide22
Retention & Expansion: Benefits
Lets businesses know they are valued
Helps solve local business issues
Improves community awareness
Connects businesses to community resources
Creates connections between community organizations
Fosters job retention & growthSlide23
Retention & Expansion Process
Planning Phase
Action Phase
Recruit volunteer visitors
Visit local businesses
Follow-up
Respond to concerns
Plan for futureSlide24
Retention & Expansion:
What has the region done to support:
Retention of cluster-related firms
Expansion of cluster-related firms
What are some potential future strategies to support cluster retention and expansion?Slide25
Business Network Development
A formal or informal collaboration among
firms that are part of a value chain
for the purpose of
creating a
net benefit
for all involvedSlide26
Network Examples
Milwaukee Seven Water Council:
Transform the workforce system and create high performance talent pipelines within the region
The Entrepreneurs Network:
Promote job growth and business creationSlide27
Meta-Business Formation
Strategies for generating revenue that support all local business
Examples:
Local coupons
Local credit/debit cards
Local currency
Business directories
Local stock exchange
Businesses that support other businessesSlide28
What’s Next?
Consider other potential strategies that could be successful in the region
Further examine the regional dataSlide29
Final Reflections
What topics did you find most helpful?
What did you find confusing?
What other data do you need?
Other items you want to mention?Slide30
Looking Ahead: Module Seven
We will:
Examine regional assets
Explore the region’s seven capitals
Take an honest look at potential barriers
Take steps to link assets to your potential regional goals