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Exploring Strategies for Enhancing the Regional Economy

Exploring Strategies for Enhancing the Regional Economy. 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.

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Exploring Strategies for Enhancing the Regional Economy

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  1. Exploring Strategies for Enhancing the Regional Economy Module Six

  2. 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?

  3. 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 explore

  4. Import Substitution Substituting externallyproduced goods and services with those that are locally produced, putting regional money to work in the region.

  5. The Leaky Bucket The Regional Economy Purchases of Goods or Services out of the Region

  6. Plugging the Leaks

  7. 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 inputs

  8. Identify Potential Leakages and Opportunities for New Businesses Grapes Labels Advertising Research Fertilizer Wine Zero inputs available regionally I Small % of inputs available regionally Irrigation System Large % of inputs available regionally 100% of inputs available regionally

  9. Example: Strengthening the Hospital Sector

  10. Growing Your Region’s Cluster Identify: • Industries composing the cluster • Imports (Leakages) • Regional capacity • Potential growth opportunities • Appropriate response strategies

  11. C.A.R.E for the Cluster Source: Barta, et al (2010) CARE Model

  12. Creation Growing new enterprises locally to fill the gaps of goods and services purchased from outside the region

  13. Access to Capital Intellectual Stimulation Education Entrepreneurs Community Support Information Connections & Networks Infrastructure Services & Amenities Creation: Providing Regional Support Source: Based on Reynolds, et. al., Small Business Economics 23: 263–284, 2004.

  14. Creation: Sample Strategies • Regional training • Business coaching • Youth entrepreneurship • Business incubators

  15. Attraction Attraction seeks to reduce leakages by recruiting into the region firms that can supply missing goods or services that support the cluster.

  16. Attraction: Targeting Effectively • Past: Blindly attracting industry • Now: Targeting businesses likely to be successful in the region

  17. 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 success

  18. Attraction:Community Business Matching Model Community Assets Goals The Ideal Needs Profile Business Source: Cox et al., 2009

  19. Attraction: Targeted Regional Economic Development (TRED) TRED is: • An economic development strategy • A planning process • Content including data analysis and interpretation Source: Goetz, Deller, Harris (2009)

  20. Attraction: Our Region • Past successes • Past challenges • Potential attraction strategies related to regional clusters

  21. Retention & Expansion Supporting existing businesses within a cluster so that they can survive and thrive is another avenue for stopping or preventing cluster leakages.

  22. 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 & growth

  23. Retention & Expansion Process • Planning Phase • Action Phase • Recruit volunteer visitors • Visit local businesses • Follow-up • Respond to concerns • Plan for future

  24. 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?

  25. 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 involved

  26. 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 creation

  27. 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 businesses

  28. What’s Next? • Consider other potential strategies that could be successful in the region • Further examine the regional data

  29. 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?

  30. 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

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