Louisiana American Planning Association Conference

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Louisiana American Planning Association Conference

• Economic Gardening An Entrepreneurial Model for
  Rebuilding Communities
• Christine Hamilton-Pennell
• City of Littleton, Colorado
• October 6, 2005

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Littleton, A Denver Suburb
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Why Is Littleton at This Conference?

• Not Experts in Disaster Recovery
• LA Has Unprecedented Opportunity to Do Economic
  Development Differently
• Littletons Economic Gardening Model Has
  Widespread Applicability
• Focus on Entrepreneurs as Drivers of Economic
  Recovery

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Its About Entrepreneurs
An entrepreneur is someone who perceives an
opportunity and creates an organization to pursue
it.

• Entrepreneurs Create Jobs
• Entrepreneurs Create Communities
• Entrepreneurs Create Networks

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Local Economy 101

• If we were to start a new town, it would have to
  have some specialization that it could trade with
  the world
• That specialization exported out of the community
  is known as a primary job.
• Primary jobs determine the amount of wealth
  coming into the community

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Local Economy 101
Primary Jobs
Residential
Local Businesses
Government
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Traditional Economic Development Recruiting Model

• We Are a Low Cost Place to Do Business
• Low Wages
• Low Land Prices
• Low Taxes
• Advertise That Fact and Get a Plant Expansion
• Offer Incentive Packages

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The Commodity Trap

• The Types of Industry Looking for Low Costs Are
  Commodity Industries
• Need to Get Costs Down
• Will Stay as Long as Costs are Low
• Will Move to Mexico or China if Standard of
  Living Rises

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Recruiting Issues

• Job Losses After Subsidies
• CT 41 of Subsidized Companies Lost Jobs
• Job Creation Costs
• NC 536,000 per Job for Nucor Steel

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Sources of Job Growth

• 75-95 of New Jobs from Existing Businesses
• 81 of Businesses Have Less Than 10 Employees
  (InfoUSA)
• 3-5 of Companies Produce 70-80 of Jobs
• Gazelles (Entrepreneurial Growth Companies)

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Economic Gardening An Entrepreneurial Solution

• Develop Local Entrepreneurs
• People with Roots in the Community
• Support Innovation to Keep Exports from Becoming
  a Commodity
• Encourage University Technology Transfer
• Expand Training Capabilities

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Characteristics of Entrepreneurs

• Worldwide, an Average of 9.3 of People Involved
  in Entrepreneurial Activity
• U.S. Average Is 11.3
• 25 to 34 Year Olds Most Likely to Start New
  Businesses
• --Global Entrepreneurship Monitor

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Characteristics of Entrepreneurs

• Half of New Ventures Started by More Than One
  Person
• Men Twice as Likely as Women to Start a New
  Business
• Blacks 50 More Likely to Engage in Start-Up
  Activities Than Whites
• More People in Urban Settings Start Businesses
  Than Those in Rural Communities
• --The Entrepreneur Next Door, Kauffman
  Foundation

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Characteristics of Entrepreneurs

• Immigrants Have Substantially Higher Rates of
  Entrepreneurship Than U.S.-Born Individuals
• Entrepreneurship Activity Increased Most in the
  West and South in the Past Few Years
• The Construction Industry Has the Highest Rate of
  Entrepreneurship Among All Major Industry Groups
• --Kauffman Index of Entrepreneurial Activity

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Characteristics of Entrepreneurs

• Temperament Is Key Factor in Growth Companies
• Myers-Briggs STJ or NTJ
• TLogical
• JControl
• Common Personality Traits
• Need to Achieve
• Internal Locus of Control
• Risk Taking

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Characteristics of Entrepreneurs

• Entrepreneurs Are Social Creatures
• Influence Others to Join Them
• Create Networks of Support
• Seek Peer Mentoring

Successful entrepreneurs are especially skilled
at using their time to develop relationships with
people who are crucial to the success of their
new venture.
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What Do Entrepreneurs Need?

• Access to Capital
• Entrepreneurial Culture
• Peer Networks
• Basic Infrastructure
• Market Information
• Access to Markets
• Training in All Aspects of Business

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City of Littletons Economic Gardening Program
An Entrepreneurial Approach to Economic
Development

• Entrepreneurs Create Jobs, Not Economic
  Developers
• Created in 1989
• Grow Your Own vs. Hunting or Recruiting
• No Incentives or Tax Breaks
• Focus on Growing Jobs Locally
• Long Term CommitmentNot a Theme of the Year

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Entrepreneurial Support System

• What Can Local Government Do to Support
  Entrepreneurs?
• Information
• Infrastructure
• Connections

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Economic Gardening The Information Component

• GIS
• Business Support Services
• Customized Research Services

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Customer Locations Trends

• Business Supplied Customer List
• Create 1, 2, 3, 5 Mile Perimeters from Business
  Location
• View Customer Clusters Chart Their Distances
  from the Business

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Customer Density Analysis

• Better Visualize Where Your Customers Are (or Are
  Not) Located
• Target Future Marketing

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Lifestyle Profiles

• Demographics
• Age, Income, Gender
• Expenditures
• Lifestyles
• Watch Disney
• Belong to PTA
• High-End PCs
• SUVs
• Martha Stewart Living

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Expenditures on Flowers
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Targeting Customers

• Locate Current Business

• Plot Customers

• Generate Density Map

• Profile Demographics of High-Density Areas

• Find New Areas that Match Demographic Profile

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Site for Sushi Restaurant

• Downtown Littleton Site Proposed
• Locate Competitor Restaurants
• Create Five-Mile Trade Perimeter
• Conduct Competitor Intelligence
• Create Demographic Report of Proposed Site

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Real Estate Records

• Denver Metro Area
• 50 Types of Info
• Marketing Uses
• Air Conditioner
• Carpets
• Unfinished Basement
• Updated Every Month

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Business Support Services

• Start-Up Checklist
• Database of Available Property
• 70 Fact Sheets
• Access to Local Media
• Seminars on Marketing, Temperament, Ad Design
• Brochure Review

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Customized Research Services

• Core Strategy Sessions with Individual Business
  Owners
• Summary of Recommendations
• Customized Reports and Lists that Create
  Competitive Advantage

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Core Strategy Sessions

• Identify Business Goals
• Identify Core Strategy Commodity vs. Niche
• Identify Growth Businesses
• Identify Skills Needed by the Team
• Identify Competitive Information Needed

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Information Resources We Use

• 10 Commercial Database Services
• 1000s of Sources
• Corporate-Level Tools
• Local to International Scope
• Federal Government Databases
• State of Colorado Lists
• Internet

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Customized Research Services

• Marketing Lists
• Competitor Information
• Company Financial Information
• Market Research Reports
• Industry Trends Forecasts
• Legislative Issues
• Trademarks and Trade Names

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SRDS Direct Marketing List Source

• Consumer Business Lists
• Searchable by Topic
• Profile, Contact, Purchase Information
• Costs Absorbed by Business

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Dodge Construction Reports

• Early Notice of Construction Projects
• Used by Contractors, Landscapers, Engineers, Flag
  Seller
• Can Search by Project Type, Cost, Location

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Website Optimization

• Optimize for Search Engines
• Search Engines Find Your Site
• Page Rank in the Top 10
• Draw Traffic to Your Site
• Best Keywords for Marketing
• Paid Advertising on Search Engines
• Increased Customer Sales

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Case Studies of Littleton Businesses
Accessible Systems
ChurchPartner
Artistic Edventures
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Accessible Systems, Inc.

• Question How to Expand Regional Market of People
  with Disabilities?
• Weekly Dodge Reports
• Magazine Subscriber Lists
• Disability Marketing Information
• Doctors and Chiropractors
• Multi-Level Houses Not Sold for 20 Years
• Website Optimization

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ChurchPartner

• Question How Can We Maximize Sales in Multiple
  Channels?
• Weekly Dodge Reports on Church and School
  Building Projects
• Web Optimization Report
• Industry Trends in School Furniture Market

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Artistic Edventures

• Question How Can We Improve Our Marketing
  Efforts?
• ACC Brochure Assistance
• Media Contacts
• Homeowners AssociationsHigh Income Children
• Marketing ResourcesParents, Grandparents
  Children
• Impact of Arts on Learning
• Home Schooling Associations

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Feedback from Businesses

• Through the Dodge reports, we have been able
  to do work for some of the general contractors
  that end up getting the bids. Weve done three
  large projects so far.
• --T.J. McCune, PBM Excavating
• After three months of implementing web
  optimization recommendations, our
  click-through rate has increased 22.46 and our
  sales are also up proportionately.
• --Rick Emmelhainz, ChurchPartner

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Feedback from Businesses

• The discussions centering on our existing
  customer base and operations followed by the
  focus group of current customers led us to the
  decision to pursue a GSA Schedule 70which
  enables us to work directly with our government
  agency customers and to perform work on a
  national basis.
• --John Ostermiller, Deane Communications
• Mayor, City of Littleton

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Economic Gardening Infrastructure Component

• Light Rail
• Restoration of Historic Courthouse
• Downtown Sidewalks
• 3 Interchange Projects
• 55 Million
• Rebuilding Streets
• 16 Million

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Quality of Life Infrastructure

• Trail System Along Every Major Drainage Channel
• 660-Acre Nature Preserve
• Park Acreage Four Times the National Average
• Town Hall Arts Center
• Littleton History Museum

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Greater Littleton Youth Initiative

• A strategic approach to enhance the development
  of young people and to prevent youth violence.
• Response to Columbine Tragedy
• Multi-Agency Collaboration
• Six Blueprint Programs
• Suicide Prevention Initiatives

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Economic Gardening Connections Component

• Higher Education and Industry
• Business to Business
• Strategic Networks/Clusters
• Government and Private Resources
• Monthly Newsletter
• Littleton Hotmail

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Tangible Results

• Employment Growth More Than Doubled
• 1990 14,907
• 2004 34,119
• Sales Tax Revenues Tripled
• 1990 6.8 Million
• 2004 19.0 Million

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Regional Comparison

• Job Growth in Denver Metro Area 37
• 1990 1,093,091 Jobs
• 2004 1,497,300 Jobs

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Model Program for the Nation?

• Cited for Innovation
• National League of Cities
• University of Minnesota
• US EDA
• NPR Magazine Interviews
• 350 Inquiries
• 30 Projects Started in Other Communities

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Contact Information
Christine Hamilton-Pennell Economic Intelligence
Specialist Business/Industry Affairs City of
Littleton 2255 W. Berry Ave. Littleton, CO
80165 303-795-3758 chamiltonpennell_at_littletongov.o
rg www.littletongov.org/bia