Asset Based Economic Development
If you want more jobs, more choices and a better community, this is the way forward...
When people hear the term "Economic Development" their eyes start to glaze over. We get that. But, those same people want jobs, shopping options, restaurant choices, entertainment venues and a unique community that they can be proud of. That sort of economic development takes an economic development strategy. The Main Street four point approach (Design, Business Enhancement, Promotion and Organization) is an economic development strategy that falls in the category of "asset based". It is important for citizens to understand asset based economic development because: 1. It is more effective than alternatives, 2. It is working in Emporia, and 3. Failure to understand asset based economic development can actually hurt a local economy.
Every community has a unique set of assets that can result in economic growth. These assets help differentiate one community from other competitors within a region. Unfortunately, many communities seek to achieve a homogeneous mixture of commercial entities based on what surrounding communities "have", thus preventing them from standing out as a destination. By identifying and leveraging community assets, we can achieve real and sustainable economic growth. Assets are divided into categories:
Heritage Assets include two basic forms: Built History and Cultural History.
Built history includes buildings and spaces that are unique and create an emotional attachment. The Granada Theatre means something beyond the brick and stucco used to construct it for those that watched a film within its walls. A dormitory on the Emporia State University Campus means something to the individuals that spent part of their college years there. Even buildings that changed uses over the years can bring back nostalgic feelings and act as a catalyst for economic improvements. How different would our community be if the Granada Theatre were never restored?
Cultural History includes the unique food, art, music, unique activities and historical events from an area. William Allen White's editorial history, the activities associated with the Flint Hills, College History, our ethnic diversity, our association with Veterans and much more make up our culture. Tying these cultural assets to business opportunities can result in a more effective climate for business growth.
Human assets can give a community an edge in developing a thriving community. From an economic development standpoint, human assets are categorized in two sets: entrepreneurs and an engaged public.
Entrepreneurs are obviously a major part of community development. However, many people don't realize that the environment an entrepreneur exists in can have a major impact on their success and the creation of additional entrepreneurs. Communities that successfully incubate entrepreneurs often have them in very close proximity in areas that promote easy interaction. It sometimes seems counterintuitive to bunch up businesses, but creating entrepreneurial clusters creates cross shopping opportunities, while the entrepreneurial energy supplied creates a new wave of entrepreneurs. In addition, an existing entrepreneurial business can lead to more business recruitment by properly identifying the businesses/individuals that supply the entrepreneur as well as the businesses/individuals that are the end users of the entrepreneurial enterprise. These associations represent opportunities to expand the local marketplace.
An engaged public creates the atmosphere for development and business growth through positive perceptions of realistic community development. Furthermore, an engaged public that understands development assets (like Main Street) can act as "lead generators" either making development officials aware of potential development opportunities or advocating for development with individual entrepreneurial contacts.
From a physical development process, organizations and individuals need to understand that development is a long and detailed process. Simply making contact with a national organization does not equal recruitment. Within development, individuals and organizations must engage in physical property development and management, marketing of properties, leasing activities and they must provide financial and human resource management services to aid in business start up and expansions. Failure to recognize any of these development activities will result in a failed development. In addition, we can't see developments as individual activities. For developments to create sustained success for the developed business and neighbors, they should exist in a cluster or node of businesses that can share customers or targeted demographics.
We can generate development by leveraging our assets in an asset based economic development strategy. The Granada Theatre used built history leverage to recruit two store fronts, and the built history was further leveraged with area infill development. Our Flint Hills cultural history leveraged gravel road biking into an expanded High Gear Cyclery. We can see entrepreneurial leverage in "serial" entrepreneurs like Kristi Mohn that surrounds her partnership in ERG with other entrepreneurs that bought into her "node" concept. Every day we leverage an engaged public to supply leads and act as community liaisons to potential entrepreneurs and expanding businesses.
Of course, all of these business concepts must be supported by targeted market research. Without research, we can make bad community decisions that overestimate the market. We must research market gaps, traffic patterns and community shopping habits. Individuals seeking development must use information to help build credibility with the existing business and potential entrepreneurial pools while earning the trust of the public. We must recognize that opening or expanding a business is a scary proposition, so we must inspire action to redevelop a community while we coordinate our effort to ensure maximum business viability.
What does this mean for the four points? In Design, we encourage certain aesthetics because it can make a business/property owner more money. Design also focuses on saving our built history so we can leverage it as an asset in future developments.
Promotion develops a brand specific to certain areas and seeks to engage area residents in our cultural history through events and interaction.
Business Enhancement fosters entrepreneurial and business growth by leveraging our heritage assets and conducting/disseminating market research while acquiring the resources necessary to help our businesses and developers succeed.
Organization team members understand that going after the right "people" is critical in developing a successful community. They are responsible for finding and developing citizens that can succeed in our local economy while assisting in asset based economic development.
Without asset based planning, economic development entities simply throw out lines and hope, or they wait for a third party to provide lead and compete among several entities... This ineffective method of development usually results in wasted resources and development that resembles large bursts spaced far apart. This lack of incremental growth has a destabilizing effect on local economies and can result in an economic mix dominated by a few large entities that can decimate a local economy upon closing. In contrast, an asset based economic development strategy supports incremental growth in a sustainable fashion that recognizes the realities and opportunities in the local economy. By building on our local assets, we create a sustainable growth model for Emporia that benefits all citizens and areas of the community. No other economic development strategy can claim that effect.
Information for this article was provided by Todd Barman of the National Main Street Center. Todd is a national expert in asset based economic development strategies, and he recently lead a session on asset based economic development at the Kansas Main Street Quarterly Training on January 12th in El Dorado, Kansas. |