Economic Gardening Growing Your Community From Within

1. Economic GardeningGrowing Your Community From Within APPA Economic Development Conference May 5, 2010 Mark Lange – Edward Lowe Foundation

2. Three Themes • The Foundation and Second-stage Businesses • Economic Gardening • Youreconomy.org

5. Championing the • Entrepreneurial Spirit • National Operating Foundation • Serving Second-stage Entrepreneurs • Entrepreneur Support Organizations • Peer Learning and Retreats • Recognition and Research • Economic Gardening

6. What’s Your Point?

7. Serving our Economy

8. Business Stage Distribution US Average 1993 - 2007 .1% Stage Four – 500 Employees .7% Stage Three – 100 - 499 11.8% Stage Two – 10 - 99 59.6% Stage One – 2 - 9 Self Employed (1) 27.8% Source – YourEconomy.org – Edward Lowe Foundation National Establishment Time Series – Walls & Associates

9. Business Stage Clusters? Industry Clusters Technology Tourism Alternative Energy Second-stage growth cluster Early Stage Incubators

10. Second-Stage Entrepreneurs Privately Held Businesses 10-99 Employees Revenue $1 - $50 Million Includes high, steady and potential growth companies Past start-up but not to maturity Growth Issues vs Survival Intent/Capacity to Grow Transitioning from Small to Large

13. Business Development – By “Stage” Stage 2 Stage 4 Stage 1 Stage 3 Incubators serving stage 1 c 2009 CEO Nexus

14. Business Development –“Growth” Companies Stage 2 Stage 4 Stage 1 Stage 3 Role Changes - Continuous - Rapid - Initial - Start-up Source: Leading at the Speed of Growth c 2009 CEO Nexus

15. Second-stage Growth Companies Facing different issues through growth Stage 2 Stage 4 Stage 1 Stage 3 c 2009 CEO Nexus

16. MICHIGAN 2010 • A select group of companies…. • Over last five years (2006 – 2010) • 1.6 Billion Revenue Increase • 1,003 New Jobs added • 22% Average increase in revenue per year • 20% Average increase in jobs per year 2010 Class - Michigan 50 Companies to Watch

17. Economic Gardening c 2008 CEO Nexus

18. Littleton, CO. – Chronology of Events 1989 – Loss, Stopped Incentives/Recruitment 1990 – 1994 – Exploration and Testing EG 1995 – EG Program Evolved to Current Form Present– Next Generation EG Programming Florida, Georgia, Kansas, Oregon, Indiana c 2009 CEO Nexus

19. Littleton, CO. % Change in Employment PeriodUSACO. DenverLittleton 1990-2005 21.447.264.2*135.3 The Economic Gardening Movement Where it all began * Local “peer” communities grew 6% to 20% Source: US Dept Labor, Bureau of Labor Statistics and Denver Regional Council of Govt. c 2009 CEO Nexus

20. Economic Gardening - The Philosophy c 2008 CEO Nexus

21. Economic Gardening – Tactical Core Intense One-to-One Consultation and Coaching Decision-Making Tools Strategy Refinement Leadership Development Information Tools Database Services (Industry trends, competitors) SEO / New Media Analytics GIS (Identify Mkts, purchase patterns, site locator) 21 c 2009 CEO Nexus

22. Emphasis on Strategic Issues • “Front end loaded” • 80/20 rule • Core strategy • Market/Industry Info • Marketing/sales Leads • Management Team • Capital - referral • Labor – referral • Export assistance • Outsourcing

24. Economic Gardening the Next Generation National Jumpstart Teams Virtual EG Services Serve Local Growth Companies Build Local Support Train Local/Regional Team

25. North Florida Jacksonville and Tallahassee Florida Economic Gardening Institute University of Central Florida Orlando FEGI Central Florida Central Florida Tampa, Sarasota South Florida South Florida Naples, Ft Lauderdale, Miami

26. Last Night in Kokomo….. “Last night, we had our very first second-stage firm talk with the Jump Start Team. The call went very well and the firm leadership left very excited about how the JST was able to zero in on some very strategic needs in just an hour-long call and then get to work immediately on providing key information and advice. The team had already begun sending the client data and information before the last contestant belted out their tune on American Idol!” Scott Hutcheson, Purdue

27. Going National! • Edward Lowe Foundation and Chris Gibbons are creating the National Center for Economic Gardening • Building a national platform for Jumpstart team delivery • Multiple Teams • Central operations, billing and coordinations @ ELF • The Greenhouse – virtual collaborations center • Gaining attention in Washington with SBA, EDA and White House Economic Council

28. “New Math” for Economic Development c 2009 CEO Nexus 100 X 5 jobs> 5 X 100 jobs Long term, sustainable strategyto grow / diversify economy…Find them, Serve them, Keep them Success requires serving the Stage-specific needsof Resident, growth-oriented companies New methods, New tools

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31. Non-Commercial Establishments Non-Profit Organizations Government Organizations Education Institutions 31

32. Non-Resident Establishments Headquartered in a different State 32

33. Non-Resident Establishments Headquartered in a different State Resident Establishments Stand-alone businesses in the area and businesses with headquarters in the same state 33

36. Serving our Economy

37. What can you do? • Find and serve your Growth Companies • Embrace Economic Gardening – Launch a pilot program • Do the math! Youreconomy.org Mark Lange 269-445-4221 mark@lowe.org Edwardlowe.org