April 14, 2005 Junction City, KS

1. April 14, 2005Junction City, KS HomeTown Competitiveness

2. Heartland Center for Leadership Development Strategic Partnership

3. HomeTown Competitiveness Framework for Effectiveand Sustainable RuralCommunity and EconomicDevelopment

4. HomeTown CompetitivenessOverview How all the pieces fit together for community and economic growth.

5. HomeTown Competitiveness isFocused on Critical Issues • Generational Wealth Transfer • Historical Youth Out-Migration Trends • Loss of Farms and Small Businesses • Erosion of Leadership Capacity

6. HomeTown Competitiveness Philosophy • Locally controlled • Build upon community assets • Do not replace local capacity; all HTC activities must add value • Build community capacity through empowering local leadership • Convene and build partnerships • Belief in power of “Hometown”

7. Putting All the Pieces Together… Youth Leadership Entrepreneurship Charitable Assets HomeTown Competitiveness

8. Entrepreneurship Leadership Youth Entrepreneurship Charitable Assets HomeTown Competitiveness

9. EntrepreneurshipExpected Outcomes • Strategy in place for increasing local entrepreneurial business development • Increased entrepreneurial activity within the community in private and public sectors • New jobs and wealth being created within the community • More current businesses retained and growing

10. EntrepreneurshipHow does it support the HTC strategy? • Business development creates jobs and new wealth in the community • Assists in retaining existing businesses • Sustains population with manageable growth • Creates career opportunities for youth • Entrepreneurs can provide leadership and new ideas for the community’s development

11. Why Entrepreneurship? “In the 21st century, we will increasingly rely on the lean and agile entrepreneurship of the small, growth-oriented business – rather than the resources, scale and market size of the large corporation – to fuel our economic growth through the creation of jobs and innovative goods and services.” The E Generation

12. The Case for Entrepreneurship • Research • Policy Shops • Community Wisdom • Proof from the Field

13. Valley County Fact Sheet. . . • Very Rural North Central Nebraska • Population 4,500 • Farming, Ranching and Trade Center • Losing Population and in Decline for 100 Years • Passed the Sales Tax for Development • Created a Development Organization – Hired Staff • Focused on Entrepreneurs • Hired an Entrepreneurial Coach

14. Fairfield Fact Sheet. . . • Rural Southeastern Iowa • Population 9,500 • Farming, Manufacturing and Trade Center • Entrepreneurial Capital of Iowa • 2,000 New Jobs Over the Decade • $250 Million in New Investment • Home to 50 Companies • Fairfield Entrepreneurs Association

15. Targeting Development Discovery Prioritization Visitation Portfolio Management Identification Support External Resource Team Coach Local Resource Team Pathway Strategies

16. Economic Development Evaluation & Celebration Capacity Building Strategy Assessment Readiness A 1,000 Mile Journey

17. Charitable Assets Youth Entrepreneurship Leadership Charitable Assets HomeTown Competitiveness

18. Charitable AssetsExpected Outcomes • Community-based endowed assets • Greater knowledge about charitable giving tools and resources • Grants awarded to specific activities that will improve economic prospects for individuals and/or technical assistance and business coaching to entrepreneurs and small businesses • Grants awarded to specific activities that will improve the likelihood that young people stay or return to their hometown

19. Charitable AssetsHow does it support the HTC strategy? • Annual earnings from endowments provide capital to invest in community priorities: Chase County -- Endow 5% of 10-Year transfer = $7 million endowment => $350,000/year payout Perkins County -- Endow 5% of 10-Year transfer = $4.75 million endowment => $237,500/year payout

20. Philosophy • Locally-controlled/decentralized • Do not replace local capacity; all services from “mothership” must add-value • Build community capacity through empowering local leadership • Convene and build partnerships • Belief in power of Hometown

22. Focus on Assets and Future Gifts • In land-rich, cash-poor rural economies, traditional urban income-based fundraising strategies will not succeed. • Gifting of assets (especially appreciated assets) must be the focus. • Therefore, estate planning, and creation of expectancies within those plans, is paramount to success.

23. What are Endowments? • “An endowment fund is a permanent fund whose assets are invested to generate income every year forever to be used by the beneficiary nonprofit organization.” • When asked what the most powerful force in the universe is, Einstein replied, “compound interest.”

24. Marketing Motivators • 50% to 70% have no will or estate plan • 70% of endowments from bequests • Fewer than 20% of people have ever been asked • Nebraska Rural Poll – 87% gave to local community organizations in past year but only 4% currently have estate plan in place providing for community

25. People Give to People • To help people in need. • To bring about change. • To improve quality of life. • To educate. • To help heal.

26. Community Case StudyValley County, Nebraska • Population = 4,647; 10% loss in ten years • Primarily farm/ranch economy; strong retail and service sector; little manufacturing • 50% more low-income residents than state average; 50% less upper-income residents • 22% elders; 13% over 75 (2x state average)

27. VALLEY COUNTY CHARITABLE GOAL SETTING October 2004 10- Year County Wealth Transfer = $129,400,000 5% of 10-Year Transfer = $6,470,000 Current Endowment = $1,448,917 (Wozab Trust; anonymous Donor-Advised Fund) Current Expectancies (5 expectancies) = $5,250,000 ____________________________ Total Endowment & Expectancies$6,698,917 Percent of 5% Wealth = 103.54% Transfer Achieved

29. Youth Leadership Entrepreneurship Charitable Assets Youth HomeTown Competitiveness

30. YouthExpected outcomes • Increased number of young people working towards returning to their hometown • Entrepreneurship curriculum and community-based learning available to more youths • Stronger school-community partnerships in place to support shared education and community economic development goals • Greater youth involvement in community service and leadership

31. YouthHow do they enhance the HTC strategy? • Pool of young entrepreneurial talent for creating new businesses and transitioning ownership from retiring business owners • Fresh ideas, energy and leadership • Youth attraction can create significant wealth retention and new wealth creation over a lifetime

32. Moving Forward… Youth Engagement and Entrepreneurship

33. YouthHow do they enhance the HTC strategy? • Pool of young entrepreneurial talent for creating new businesses and transitioning ownership from retiring business owners. • Fresh ideas, energy and community leadership. • Youth attraction can create significant wealth retention and new wealth creation over a lifetime. • Compelling charitable giving priority.

34. Youth Impact…

35. Youth Are Critical to Rural Vitality! • 3:1 positive impact upon population • Long-term business and career goals • Educated workforce for expanding businesses • Substantial consumers of goods and services • New energy, skills, ideas and resources • Support and use public institutions • Retention of local generational wealth

36. Key Elements of Youth Attraction Quality Economic Opportunities & Education Heart for Service and Pride in Community by Youth Positive Community Attitude and Support of Youth

37. First: Set A Goal! Youth Attraction Making your community a more attractive choice for young people!

38. Youth Attraction Formula • Based on actual U.S. Census population data • Factors in rural county marriage rate • Calculated using average children per family • Adjusts for current number of youth in county • Formula helps determine annual youth goal • Goal used to open dialog and engage youth

39. Example 1:Valley Co. Youth Attraction Goal 1990 Population 5,169 2000 Population 4,647 Percent change -10% Loss Per Year in 1990s 52 Persons Total Youth 1,207 Persons Youth as a Percent of Total 26% Average Graduating Class 67 Persons Annual Youth Attraction Goal 18 Persons 27% Youth Attraction Goal

40. Second: Engage Youth • Seek young people with entrepreneurial ideas • Ask them about their hopes and dreams • Ask them to show you what they’re working on • Be patient and actively listen to them • Show them they are valued and important • Find out what they need to be successful • Make it happen one youth at a time!

41. Identifying E-Youth • May not immediately come to mind • Can appear to be introverted, but not always • Creative and enjoy experimenting • May find them in the workshop or craft room • Often have one or more micro-businesses • May talk about markets more than sports, etc. • Usually know they are wired differently (1:10)

42. Leadership Leadership Youth Entrepreneurship Charitable Assets HomeTown Competitiveness

43. LeadershipExpected Outcomes • Increased diversity in community leadership • Enhanced leadership knowledge and skills • More volunteer engagement in community projects and activities • More people willing to run for public office

44. LeadershipHow does it support the HTC strategy? • Expands the pool of volunteers and emerging leaders to work on HTC task forces and projects. • Assists current and new leaders in developing their leadership skills. • Encourages community members to participate in community planning and projects.

45. don@ruraleship.org For More Information. . . . • Center for Rural Entrepreneurship – http://www.ruraleship.org • Ewing Marion Kauffman Foundation – http://www.emkf.org • RUPRI – http://www.rupri.org