Economic Development 411

Posted by Lake Superior Community Partnership on September 28, 2015

Earlier this month we hosted a webinar titled Economic Development 411 (ED411). We designed this presentation to give the community a better understanding of economic development and what it means to our county. We received positive feedback on the webinar and plan to host it again in October. Myself and fellow Certified Economic Developer, LSCP VP of Economic Development, Caralee Swanberg, developed the presentation based on different training courses we’ve participated in over the years and experience working with clients on different projects. Topics covered in the webinar are business retention and expansion (BRE), entrepreneurship, attraction, government relations, talent development, incentives, life cycle economic development, network and services.

What is economic development? The definition I like is “improving the economic well-being of a community through efforts in job creation, job retention, tax base enhancement and quality of life.” The bottom line? Economic development MUST generate wealth. The three types of economic development that an Economic Development Organization (EDO) spends time on are Business Retention & Expansion (70-80%), Entrepreneurship (10-20%) and Business Attraction (5-10%). The LSCP’s portfolio remains in line with this as we spend 85% of our resources on BRE, 11% working on start-ups and 4% on attraction. We are slightly heavier on BRE and less on attraction which is typical of an EDO in rural areas. Attraction is very expensive and competitive. Retaining and growing our current business base is critical. Not unlike the cost of retaining a customer versus attracting a new one!

Although expensive, we do spend resources on attraction. The webinar outlines the different methods we use including regular communications with site selectors, responding to request for proposals, typically from the Michigan Economic Development Corporation (MEDC), and attending conferences and summits for face-to-face contact.

A few weeks ago, I discussed some of the work we do in government relations. This is a very important aspect of economic development. We consistently track legislation and keep our partners up to date on key issues that can impact their business. Often times we take a stand on issues based on what benefits the majority of our partners. We do not, however, endorse candidates. We are involved in many organizations including the Marquette County Ambassadors, Northern Michigan Chamber Alliance, and Government Relations task force and facilitate the U.P. Energy Users Coalition, which ensures we are up to date on what is happening in Lansing and Washington D.C.

Talent enhancement is another hot topic in economic development. We work with the Career and Technical Education committee and Lake Superior Partners in Education as well as take the lead on Career Jump Start in the Upper Peninsula. Our foundation (LSCPF) along with partners and NMU continue to administer the Electrical Line Technician Program. We also assist partners who are hiring by connecting them with the appropriate organization or partner (i.e. Michigan Works!, mitalent.org, Manpower, Stang Decision Systems) or featuring available jobs via our “Job of the Week.”

Life cycle economic development means we work with a company through all stages from start up to succession. We are here to work with businesses every step along the way. Often times we feel a part of the company family and share in the passion and pride they have for their business.

This is a brief snapshot of what we cover in ED411. We encourage you to participate in the webinar next month. Visit www.marquette.org and more information on registration will be available soon. This is an opportunity to learn a little bit and ask any questions you’ve ever had on the LSCP or economic development.

 

Amy Clickner, CEO, writes a bi-weekly column for the Mining Journal.