Post on 03-Jan-2016
description
Regional Economic Regional Economic DevelopmentDevelopment
Michael MorrisonMichael MorrisonPresidentPresident
Jamie T. ZaniosJamie T. ZaniosDirectorDirector
The Need for ChangeThe Need for Change
Demography is Destiny:Demography is Destiny:Unless We Do Something About Unless We Do Something About
It!It!
Iowa CountiesIowa Counties
Population ChangesPopulation Changes
North Iowa Area Schools North Iowa Area Schools Enrollment Under 18 Enrollment Under 18
1975-20011975-2001
-29.90%
-35% -30% -25% -20% -15% -10% -5% 0%
Percent Change inArea 2 Enrollment
Under 18, 1975-2001
Percent Change
Population Projections from Woods and Poole
Population Projections from Woods and Poole
Projected Population Changes, 2000 to 2015Projected Population Changes, 2000 to 2015
Population Projections from Woods and Poole
Projected Population Changes, 2000 to 2015Projected Population Changes, 2000 to 2015
Iowa In National ContextIowa In National Context
The EconomyThe Economy
Business Vitality Index - EntrepreneurismBusiness Vitality Index - Entrepreneurism
Net Gain/Loss ofNet Gain/Loss ofIowa ResidentsIowa Residents
States’ Ability to Produce Graduates vs. States’ Ability to Produce Graduates vs. Ability to Keep and Attract GraduatesAbility to Keep and Attract Graduates
Migration Rate of 22- to 29-Year-Olds
with a College Degree
100
7.5 15 22.5 30
400
AK
NV
NM
GA
ID
FL
OH
NC
MI
MO
VT
KS
NE
ME
PARI
TXOR
AZ
WA MD
IL
VA
UT
CA
CO
NY DEMN
CT
NH
NJ
MA
0
State New Economy Index Scores (2002)
Top Tier
Middle Tier
Low Tier
OKLA
AR
MS
HI
KY
AL
TN
SC
WVMT
IN
SD
WI
ND
IAWY
Low Production, Importer of Capital High Production, Importer of Capital
Low Production, Exporter of Capital High Production, Exporter of Capital
200
300
-400
-100
-300
-200
Net Migration of Residents 22-29Net Migration of Residents 22-29with Bachelor’s Degree or Higher, 1995-2000with Bachelor’s Degree or Higher, 1995-2000
Source: U.S. Census Bureau, Public Use Microdata Samples, 2000
191,07073,509
49,421
44,216
43,837
40,06035,307
32,564
30,36329,603
28,99827,216
25,875
24,470 14,557
13,666
10,9469,752 3,295
2,337
1,190
960645
-303
-498-661
-1,385-1,503
-2,899
-2,996
-3,510
-3,579
-3,854
-4,447
-4,591-4,966
-5,530
-6,670-6,903
-6,934-7,241
-8,420
-9,246-9,687
-9,763
-10,534-13,488
-16,902-17,643
-34,642
Califo
rnia
Texas
Georg
ia
New
York
Illinois
Flo
rida
Colo
rad
o
Virg
inia
Massa
chuse
tts
Wash
ing
ton
North
Caro
lina
New
Jerse
y
Mary
land
Arizo
na
Ore
gon
Min
neso
ta
Tennesse
e
Nevad
a
Haw
aii
Ala
ska
South
Caro
lina
Dela
ware
Connecticu
t
Misso
uri
Idaho
Kentu
cky
New
Mexico
Wyom
ing
Kansa
s
New
Ham
psh
ire
Rhod
e Isla
nd
Verm
ont
Ark
ansa
s
Neb
rask
a
South
Dakota
Main
e
Monta
na
Mississip
pi
North
Dakota
Okla
hom
a
West V
irgin
ia
Louisia
na
Ala
bam
a
Uta
h
Mich
igan
Ohio
Wisco
nsin
Iow
a
Ind
iana
Pennsy
lvania
-50,000
50,000
100,000
150,000
200,000
0
Aggregate Personal Income Inequality Aggregate Personal Income Inequality Grows Between Iowa Counties, 1969-2002Grows Between Iowa Counties, 1969-2002
0.00
0.10
0.20
0.30
0.40
0.50
0.60
19691972
19751978
19811984
19871990
19931996
19992002
Year
Gin
i C
oef
fici
ent
15.52% increase in 15.52% increase in inequality since 1969inequality since 1969
Enough! No more prizes forEnough! No more prizes forpredicting rain!predicting rain!
Bold, New InitiativesBold, New InitiativesAre RequiredAre Required
Nine New InitiativesNine New Initiatives
1.1. Pappajohn Entrepreneurial CenterPappajohn Entrepreneurial Center2.2. North Iowa Growth PartnershipNorth Iowa Growth Partnership3.3. Labor Shed AnalysisLabor Shed Analysis4.4. Cluster AnalysisCluster Analysis5.5. North Iowa AcceleratorNorth Iowa Accelerator6.6. Business IncubatorBusiness Incubator7.7. North Iowa Venture Capital FundNorth Iowa Venture Capital Fund8.8. North Iowa Growth Marketing Partnership North Iowa Growth Marketing Partnership 9.9. Regional Economic DevelopmentRegional Economic Development
• Iowa’s future depends on it!Iowa’s future depends on it!– Bold, new initiatives are requiredBold, new initiatives are required
• We are appropriately “positioned” to do itWe are appropriately “positioned” to do it
• It is strategic to do it!It is strategic to do it!
• It’s aligned with State and Federal It’s aligned with State and Federal economic development initiatives & planseconomic development initiatives & plans
• ROIROI
Why Should We Do This?Why Should We Do This?
I. PappajohnI. PappajohnEntrepreneurial CenterEntrepreneurial Center
• Produce and cultivate a culture conducive to entrepreneurship• Provide entrepreneurs the tools for success• Provide promising entrepreneurs access to capital
NIACC John Pappajohn Center…Step by Step
• Step 1: Classes, workshops and technical support• Step 2: Integration with EDC’s (i.e. company
recruitment) and others• Step 3: Access to Capital• Step 4: Deal Flow• Next Steps 5: A Wider Reach
Entrepreneurship Education:A wide array of programs
Degree Programs• Associate of Science Degree and
Certificate Degree– Opportunity Recognition– Foundation Courses– Hands on Learning– Interdisciplinary
• Creating a Way of Thinking• Job Creators vs. Job Takers
Necessity and Opportunity Based Education
• FastTrac New Venture• FastTrac Planning• Angel Investing Seminar• ON-LINE Intro to
Entrepreneurship• E-Commerce Workshops• Start your Own Business
Seminar
Entrepreneurship Awareness and Education
To offer expanded programs which may include populations that might otherwise not be exposed to the concept and option of entrepreneurship and self employment.
• Communication Courses• Faculty Training • Collegiate Entrepreneur Organization• Credit Class - The Entrepreneurial Process –
2 s.h. evening course
NIACC and ISU Collaboration
• Allow students to network and provide entrepreneurial support to start-up and mezzanine level businesses.
• Develop best practices in cross curriculum entrepreneurship education
• Increase the ties between Regents Institutions and Community Colleges
Small Business Development Center: AREAS OF ASSISTANCE
• Feasibility Analysis• Business Planning• Sources of Capital• Financial Planning• Cashflow Analysis• Loan Proposals• Loan Applications• Human Resource
Planning
• Market Research• Market Planning• Strategic Planning• Government Procurement• Accounting, Recordkeeping• Information Technology• International Trade• Inventions
SBDC : Supporting the EntrepreneurA wide array of workshops
• Smart Start Program• On-Line E-Z Start• Growing your Business• Effective Marketing• SCORE Workshop• Financial Management/Cash Flow
Workshop• IRS Tax Workshop –Codes
Update• Iowa Sales Use and Local Sales
Option Tax
• Deductions and Expenses• Iowa Payroll and Employment
Taxes• Taxes for Construction
Contractors• Taxes for Landscape
Contractors • SBDC Franchise Workshop• Women’s Technology
Workshop• OSHA’s Knocking, Are You
Ready?
Iowa Entrepreneurial Consortium: Iowa Entrepreneurial Consortium: New Business StartsNew Business Starts
StatewideStatewide
Over 4000 Over 4000 participantsparticipants
Over 400 new Over 400 new business starts business starts
LocallyLocally
130 + new 130 + new business startsbusiness starts
NIACC and Lean Manufacturing
• NIACC leads the State of Iowa in “Lean Manufacturing” training and results and Iowa leads the nation. A strong program delivered by the college in conjunction with Iowa Workforce Development and part of 260 E and F training funds.
• Over $148,000,000 in realized savings reported by the industries served!
Additional Activities
• Youth Entrepreneurial Academy– Summer 4 day, live and learn on campus, with
business visits. Final is business plan presentation to Prominent Business Persons.
– 20 students attend free of charge for the academy which includes training, room, board, evening activities, field trips and more.
– Last year resulted in two student run businesses being developed and launched.
• Entrepreneurship Exchange – Gathering of entrepreneurs at the JPEC for short
topical presentations and networking with each other.
Next Steps : A Wider Reach
• Intra Entrepreneurship– Introducing entrepreneurial thinking into Iowa’s many mature
industries
• Entrepreneurial Symposium for Elected Officials• Entrepreneurship Introduced Early in a Child's
Education• Business and Student Incubation• The Entrepreneurial Community Colleges of Iowa
Some Results
• 98 Students Enrolled in Entrepreneurial Credit Course and 23 in the degree program (First Year).
• Seven student business plans from the NIACC JPEC were submitted for the state wide business plan competition sponsored by the JPEC’s statewide.
• Nineteen Scholarships were awarded to students in the JPEC Entrepreneurship Degree Program.
Some Results
• 30 new businesses started this fiscal year with a total of 66 employees as a direct result of our programs.
• The JPEC delivered over 65 entrepreneurial and small business programs throughout the year and reached over 1,500 Iowans.
• The North Iowa Venture Capital Fund has reviewed over 50 deals and funded 5 for a total of $800,000. 63 new jobs in North Iowa will be the result of one deal and retention of 30+ in a second.
• The new North Iowa Business Accelerator has consulted with over 10 businesses in less that half a year, with state funding and jobs as a result.
II. North Iowa Growth PartnershipNorth Iowa Growth Partnership
PartnersPartners::•Mason City EDCMason City EDC•Clear Lake EDCClear Lake EDC•Cerro Gordo CountyCerro Gordo County•Alliant EnergyAlliant Energy•NIACCNIACC
III. Labor Shed AnalysisIII. Labor Shed Analysis
Traditional Labor ShedTraditional Labor Shed
• Narrow geographic focusNarrow geographic focus
• No or little cooperation among competing No or little cooperation among competing EDCs (Economic Development EDCs (Economic Development Corporations)Corporations)
• Resulting in no time synchronization for Resulting in no time synchronization for the analysesthe analyses
• Mind set – “win/lose”; no “win-win” Mind set – “win/lose”; no “win-win”
Traditional Labor ShedTraditional Labor Shed
• Meaning that when a prospect comes to Meaning that when a prospect comes to our region we have:our region we have:– Narrow labor sheds Narrow labor sheds – Dated labor shedsDated labor sheds– Labor sheds that cannot be aggregated Labor sheds that cannot be aggregated
because they are not conducted at the same because they are not conducted at the same timetime
– EDCs not cooperating, thereby failing to EDCs not cooperating, thereby failing to leverage regional assets and resourcesleverage regional assets and resources
• Nine-countyNine-county labor shed labor shed
• Conducted at the same timeConducted at the same time
• Establish comprehensive partnership:Establish comprehensive partnership:– NIACC, IWD, and EDCsNIACC, IWD, and EDCs
• Thereby, leveraging resources for cost Thereby, leveraging resources for cost effectivenesseffectiveness
• Aggregate the Aggregate the 9 county labor shed9 county labor shed data to data to demonstrate our POTENTIAL to business demonstrate our POTENTIAL to business prospectsprospects
Solution to the Labor Shed IssueSolution to the Labor Shed Issue
• Nine-countyNine-county labor shed labor shed
• Conducted at the same timeConducted at the same time
• Establish comprehensive partnership:Establish comprehensive partnership:– NIACC, IWD, and EDCsNIACC, IWD, and EDCs
• Thereby, leveraging resources for cost Thereby, leveraging resources for cost effectivenesseffectiveness
• Aggregate the Aggregate the 9 county labor shed9 county labor shed data to data to demonstrate our POTENTIAL to business demonstrate our POTENTIAL to business prospectsprospects
Solution to the Labor Shed IssueSolution to the Labor Shed Issue
Solution to the Labor Shed IssueSolution to the Labor Shed Issue
IV. Cluster AnalysisIV. Cluster Analysis
Critical NeedCritical Need
• What is absolutely critical for North Iowa is What is absolutely critical for North Iowa is to find its to find its competitive advantagecompetitive advantage..
• Therefore, NIACC is partnering with IWD Therefore, NIACC is partnering with IWD and each EDC in our region to complete a and each EDC in our region to complete a comprehensive 9 county cluster analysiscomprehensive 9 county cluster analysis to determine our competitive advantage.to determine our competitive advantage.
ClustersClusters
• Clusters: critical masses in one place, Clusters: critical masses in one place, linking industries that enjoy unusual linking industries that enjoy unusual competitive success in a particular field. competitive success in a particular field. – Example: Silicon ValleyExample: Silicon Valley
• Cluster analyses identify competitive Cluster analyses identify competitive advantageadvantage– The key is to identify regional strengths to The key is to identify regional strengths to
leverage new business development through leverage new business development through the identification of “multipliers”the identification of “multipliers”
ClustersClusters
• Clusters: critical masses in one place, Clusters: critical masses in one place, linking industries that enjoy unusual linking industries that enjoy unusual competitive success in a particular field. competitive success in a particular field. – Example: Silicon ValleyExample: Silicon Valley
• Cluster analyses identify competitive Cluster analyses identify competitive advantageadvantage– The key is to identify regional strengths to The key is to identify regional strengths to
leverage new business development through leverage new business development through the identification of “multipliers”the identification of “multipliers”
Cluster AnalysisCluster Analysis
V. North Iowa AcceleratorV. North Iowa Accelerator
Business Accelerators:Business Accelerators: Organizations Organizations that foster the accelerated growth of new that foster the accelerated growth of new and existing businesses.and existing businesses.
Partnership: IDED, Community College regions 1, 2 and 3; and IWD
North Iowa AcceleratorNorth Iowa Accelerator
• NIACC is among the first organizations in NIACC is among the first organizations in the State to be honored and selected by the State to be honored and selected by the Iowa Department of Economic the Iowa Department of Economic Development as a “Business Accelerator”.Development as a “Business Accelerator”.
• Our “territory” extends to Areas I & III, Our “territory” extends to Areas I & III, through cooperative arrangements with my through cooperative arrangements with my colleagues in those areas.colleagues in those areas.
• Assistance to meet the needs for Areas 1 Assistance to meet the needs for Areas 1 and 3 is provided by IWDand 3 is provided by IWD
Significance of theSignificance of the“Business Accelerator”“Business Accelerator”
• Rural economic is important to the State of IowaRural economic is important to the State of Iowa– Represents a vision that all of Iowa needs to Represents a vision that all of Iowa needs to
prosperprosper• Represents a paradigm shift in the “way we Represents a paradigm shift in the “way we
think” about economic developmentthink” about economic development– Fishing and gardeningFishing and gardening– Look internally to invest in ourselvesLook internally to invest in ourselves
• Vote of confidence in NIACC and our regionVote of confidence in NIACC and our region• Demonstrates that Community Colleges are well Demonstrates that Community Colleges are well
positioned to lead these effortspositioned to lead these efforts
Significance of theSignificance of the“Business Accelerator”“Business Accelerator”
• Rural economic is important to the State of IowaRural economic is important to the State of Iowa– Represents a vision that all of Iowa needs to Represents a vision that all of Iowa needs to
prosperprosper• Represents a paradigm shift in the “way we Represents a paradigm shift in the “way we
think” about economic developmentthink” about economic development– Fishing and gardeningFishing and gardening– Look internally to invest in ourselvesLook internally to invest in ourselves
• Vote of confidence in NIACC and our regionVote of confidence in NIACC and our region• Demonstrates that Community Colleges are well Demonstrates that Community Colleges are well
positioned to lead these effortspositioned to lead these efforts
VI. Business IncubatorVI. Business Incubator
Leveraging existing resources:Pappajohn Center
SBDCIowa Workforce Development Center
Business AcceleratorNew Jobs Training Program
VI. Business IncubatorVI. Business Incubator
Leveraging existing resources:Pappajohn Center
SBDCIowa Workforce Development Center
Business AcceleratorNew Jobs Training Program
VII. North Iowa Venture Capital FundVII. North Iowa Venture Capital Fund
North Iowa Venture Capital Fund, LLCNorth Iowa Venture Capital Fund, LLC
• Comprised of 61 accredited angel Comprised of 61 accredited angel investors and/or businessesinvestors and/or businesses
• Capitalized and raised Capitalized and raised $$1.7M1.7M
• Look to invest in Northern Iowa Look to invest in Northern Iowa
• Investment strategies will vary from Investment strategies will vary from start-up to expansion businessesstart-up to expansion businesses
• Angel Investment Motivation: ROIAngel Investment Motivation: ROI
North Iowa Venture Capital Fund, LLCNorth Iowa Venture Capital Fund, LLC
• Comprised of 61 accredited angel Comprised of 61 accredited angel investors and/or businessesinvestors and/or businesses
• Capitalized and raised Capitalized and raised $$1.7M1.7M
• Look to invest in Northern Iowa Look to invest in Northern Iowa
• Investment strategies will vary from Investment strategies will vary from start-up to expansion businessesstart-up to expansion businesses
• Angel Investment Motivation: ROIAngel Investment Motivation: ROI
Available Capital for a Seed/Start-up
Business$10K-1M
Bank Financing$10-50K
Wellmark Venture Capital
Fund$10-50K
North Iowa Venture Capital
Fund, LLC$50-160K
WellmarkAdditional Funding$50,000
Angel$10-100K
What’s Possible Today for What’s Possible Today for Seed and Start-up Business?Seed and Start-up Business?
North Iowa and Iowa now have access to more early stage equity capital then ever before.
Venture and Equity Fund Network
$100-500K plus
VIII. North Iowa Growth Marketing VIII. North Iowa Growth Marketing Partnership Partnership
North Iowa Growth Marketing North Iowa Growth Marketing Partnership Partnership
• Seven CountiesSeven Counties
IX. Regional Economic DevelopmentIX. Regional Economic Development
Current StatusCurrent Status• Our region “strikes out” too often. Our region “strikes out” too often. • Most often, we’re not even “up to bat”Most often, we’re not even “up to bat”
– Des Moines, Cedar Rapids etc hit the home runs Des Moines, Cedar Rapids etc hit the home runs before North Central Iowa knows there’s a ball before North Central Iowa knows there’s a ball game.game.
• Resources are not leveragedResources are not leveraged• Cities & counties act as if their competition is “just Cities & counties act as if their competition is “just
down the road”down the road”
Current Economic Development Current Economic Development “Organization”“Organization”
Future Vision for Economic Future Vision for Economic Development OrganizationDevelopment Organization
Future Vision for Economic Future Vision for Economic Development OrganizationDevelopment Organization
First Steps:9 County Labor Shed
9 County Cluster AnalysisBusiness AcceleratorBusiness Incubator
North Iowa Venture Capital FundNorth Iowa Growth Marketing
Regional Economic Development
ConclusionConclusion
• Someone once asked Winston Churchill,Someone once asked Winston Churchill,– ““Mr. Churchill, why are we fighting this terrible Mr. Churchill, why are we fighting this terrible
war?”war?” – Churchill responded,Churchill responded, “If we don’t, you’ll “If we don’t, you’ll
understand why later.”understand why later.”
• The same analogy holds now for the The same analogy holds now for the decisions we must make. We must take decisions we must make. We must take action now to change the paradigm of action now to change the paradigm of economic development in our region.economic development in our region.