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Practicing Economic Gardening
                             Roy Powell

© Copyright Economic Gardeners Pty Ltd 1988 - 2007
...
Overview

 Our initial economic gardening program has:
 ! Verified the assumptions on which it was based,
 ! Produced outs...
Who Is Roy Powell?

 !     A grumpy old man – it has
       advantages!
 !     Repatriated academic
 !     Sometime cricke...
Sometime Grazier (Rancher) – with Dependants




© Copyright Economic Gardeners Pty Ltd 1988 - 2007
                      ...
Practical Economic Gardener




© Copyright Economic Gardeners Pty Ltd 1988 - 2007
                                       ...
Proponent of Men’s Sheds




       Visit the award-winning website: www.mensheds.com.au


© Copyright Economic Gardeners ...
Conductor of the Pelican Choir




© Copyright Economic Gardeners Pty Ltd 1988 - 2007
                                    ...
The 2007 Port Macquarie Program

 !     The first such program in Australia
 !     An initiative of the PMH Council with E...
The Businesses

 !     Had not accessed government programs
 !     Were not part of business networks
 !     Had never sou...
The Outcomes - Business


 !     Businesses exist with the potential and the will to grow
 !     There are businesses will...
Outcomes - General

 !     The program provides a practical connection between
       the Council and the small business s...
Products - Medals




                     Medals designed and supplied by Awards and Promotional Supplies P/L



© Copyri...
Products – fastening straps




                      Products developed and supplied by Kadmac Enterprises P/L


© Copyri...
Products – Polocrosse racquets




               Polocrosse racquets and other supplies from Bennett Polocrosse P/L


© C...
Products – stretch fabric sportswear




                  Australian Basketball                 Hockey uniform supplied t...
Easyjoin Steel Fasteners




                                                           Bennett Steel




© Copyright Econ...
Safety Doors




                                                       The principle
                                    ...
And there is More….

 !     Local bottled water taking on the majors
 !     Chlorine-resistant swimwear, especially for ol...
Why Develop “Locally-owned” Businesses?


 ! Shape the identity of the local economy
 ! A focus for local entrepreneurs an...
Types of Regional Businesses

 Business category                                   Business share of region economy
 1. Gl...
Business and the Local Economy

 Business links to the local economy
 ! Sales
 ! Cost of goods sold
 ! Overheads          ...
An Economic Gardening Program


 ! Is an approach to build business capacity
       focused on businesses that are:
      ...
Part of Overall Development Strategy


 ! Economic gardening is the business
       development component of an economic
 ...
The Objectives

 !     To support the growth of small, local businesses in the
       region.
 !     To operate economic g...
How does the Program Operate?

 !     The main vehicle is the workshops that are “learning
       and doing” sessions.
 ! ...
The Focus of the Program - Participants

 Businesses can be categorised into various size groups:
 ! Just starting
 quot; ...
The Program Structure

 1.      A structured selection process
         !     To meet region development objectives
      ...
What are the Outcomes for Participating
                      Businesses?

 !     Participants build:
         !   A new b...
What are the Outcomes for Other Businesses?

 !     Flow-on/linkage effects
         !   Growing local businesses generate...
What are the Outcomes for a Council?

 !     An enhancement to their economic development strategy and
       program (one...
What are the Outcomes for the Community?

 !     A growing economy provides a growing base for
       building community p...
The Add-On Phase

 !     The present focus is on businesses on the move
 !     Now to build the entrepreneurial and innova...
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EG2008 Roy Powell Practicing Eg June2008

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2008 Economic Gardening Gathering in Steamboat: Roy Powell Practicing EG

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Transcript of "EG2008 Roy Powell Practicing Eg June2008"

  1. 1. Practicing Economic Gardening Roy Powell © Copyright Economic Gardeners Pty Ltd 1988 - 2007 1
  2. 2. Overview Our initial economic gardening program has: ! Verified the assumptions on which it was based, ! Produced outstanding results for the participating businesses ! Provided a positive bridge between the Council and businesses ! Been a sensational learning process for us and them ! Allowed us to innovate the program This is a summary of where we have been, the refined future direction and new opportunities © Copyright Economic Gardeners Pty Ltd 1988 - 2007 2
  3. 3. Who Is Roy Powell? ! A grumpy old man – it has advantages! ! Repatriated academic ! Sometime cricketer – ‘national’ representative ! Regular traveller ! Sometimes at home – the early morning view © Copyright Economic Gardeners Pty Ltd 1988 - 2007 3
  4. 4. Sometime Grazier (Rancher) – with Dependants © Copyright Economic Gardeners Pty Ltd 1988 - 2007 4
  5. 5. Practical Economic Gardener © Copyright Economic Gardeners Pty Ltd 1988 - 2007 5
  6. 6. Proponent of Men’s Sheds Visit the award-winning website: www.mensheds.com.au © Copyright Economic Gardeners Pty Ltd 1988 - 2007 6
  7. 7. Conductor of the Pelican Choir © Copyright Economic Gardeners Pty Ltd 1988 - 2007 7
  8. 8. The 2007 Port Macquarie Program ! The first such program in Australia ! An initiative of the PMH Council with Economic Gardeners delivering the program ! Setup costs covered by Council, participating businesses pay fees ! Combination of workshops and individual sessions to build planning and operating capacity ! Balance between running the business, learning and planning is the big issue ! Needs integrity and mutual respect in large amounts © Copyright Economic Gardeners Pty Ltd 1988 - 2007 8
  9. 9. The Businesses ! Had not accessed government programs ! Were not part of business networks ! Had never sought an independent assessment of their business performance ! Would not access the materials and tools from the net ! Did not have written business plans ! Were “reserved” about their business ! Run on good intuition and industry knowledge ! Knew they needed help but did not know where to start looking for that help © Copyright Economic Gardeners Pty Ltd 1988 - 2007 9
  10. 10. The Outcomes - Business ! Businesses exist with the potential and the will to grow ! There are businesses willing to pay for the direct cost of the program (no drop outs) ! Networking among the businesses has developed wholesomely ! Real partnerships have been developed among business partners ! Businesses have the confidence and capacity for: ! Planning and achieving high business growth ! For networking, sharing and trust ! For benchmarking and peer review ! On-going learning and business improvement © Copyright Economic Gardeners Pty Ltd 1988 - 2007 10
  11. 11. Outcomes - General ! The program provides a practical connection between the Council and the small business sector ! Over time, the program will build the diversity of the Port Macquarie economy ! Selection processes can be used to nurture the key industries identified in the development strategy ! There are small businesses with strong market niches – distinctive products © Copyright Economic Gardeners Pty Ltd 1988 - 2007 11
  12. 12. Products - Medals Medals designed and supplied by Awards and Promotional Supplies P/L © Copyright Economic Gardeners Pty Ltd 1988 - 2007 12
  13. 13. Products – fastening straps Products developed and supplied by Kadmac Enterprises P/L © Copyright Economic Gardeners Pty Ltd 1988 - 2007 13
  14. 14. Products – Polocrosse racquets Polocrosse racquets and other supplies from Bennett Polocrosse P/L © Copyright Economic Gardeners Pty Ltd 1988 - 2007 14
  15. 15. Products – stretch fabric sportswear Australian Basketball Hockey uniform supplied to Japan Sportswear designed and manufactured by Soft Edges P/L © Copyright Economic Gardeners Pty Ltd 1988 - 2007 15
  16. 16. Easyjoin Steel Fasteners Bennett Steel © Copyright Economic Gardeners Pty Ltd 1988 - 2007 16
  17. 17. Safety Doors The principle In an emergency, the jambs can be retracted allowing the door to open in the opposite direction to normal operation. Manufactured by North East Door Frames Paula Beauchamp © Copyright Economic Gardeners Pty Ltd 1988 - 2007 17
  18. 18. And there is More…. ! Local bottled water taking on the majors ! Chlorine-resistant swimwear, especially for older women ! Fantastic Sydney rock oysters ! Production and distribution rights for new ‘green’ cleaning product and advanced moisture solutions ! Tomatoes and strawberries to die for! ! Pies for all seasons ! Fantastic foam ! Allergy free foods…….. © Copyright Economic Gardeners Pty Ltd 1988 - 2007 18
  19. 19. Why Develop “Locally-owned” Businesses? ! Shape the identity of the local economy ! A focus for local entrepreneurs and the retention and attraction of young people ! They have innovation and risk taking capacity ! “Neglected” in terms of business support ! Identify with local economy ! Strong leverage through local linkages ! Source of pride for the community © Copyright Economic Gardeners Pty Ltd 1988 - 2007 19
  20. 20. Types of Regional Businesses Business category Business share of region economy 1. Global companies 5% 2. National companies 30% 3. Local companies: 65% 100% I. Global reach 2% II. Franchises (local) 10% III. National reach 15% IV. Local reach 38% 65% The above are my estimates of the composition of the businesses in the local economy. I expect that the share of local companies is declining and that of national companies and franchises is rising. © Copyright Economic Gardeners Pty Ltd 1988 - 2007 20
  21. 21. Business and the Local Economy Business links to the local economy ! Sales ! Cost of goods sold ! Overheads Onsite ! Corporate ! Wages paid ! Wages spent ! Profits/dividends paid ! Profits/dividends spent Locally owned and managed businesses are the category that can contribute to the local economy under all headings. © Copyright Economic Gardeners Pty Ltd 1988 - 2007 21
  22. 22. An Economic Gardening Program ! Is an approach to build business capacity focused on businesses that are: ! High Performance: networked, globalised, customised, fast and flexible (after Burgess) ! Well structured and planned ! Strongly linked to the local economy ! Capable of achieving high growth ! Robust and adaptable ! Involves direct business advice from experienced business people © Copyright Economic Gardeners Pty Ltd 1988 - 2007 22
  23. 23. Part of Overall Development Strategy ! Economic gardening is the business development component of an economic development strategy including: ! Business relocation ! Developing key industries ! Building infrastructure ! Building customer care and service ! Special projects (farmers’ market) ! Promotion of the region ! Economic Gardening – helping small businesses to look and operate like large businesses © Copyright Economic Gardeners Pty Ltd 1988 - 2007 23
  24. 24. The Objectives ! To support the growth of small, local businesses in the region. ! To operate economic gardening programs to fill the ‘gap’ in business support for regional businesses identified by Keniry. ! The group approach keeps costs low and builds networks of businesses that share common values. ! To grow the businesses and the economy. ! To begin to diversify the industry and market structure of the economy to reduce volatility ! To build the perception that the region is a hub for high performance, entrepreneurial businesses. © Copyright Economic Gardeners Pty Ltd 1988 - 2007 24
  25. 25. How does the Program Operate? ! The main vehicle is the workshops that are “learning and doing” sessions. ! There is homework between sessions. ! There is an increasing amount of information on the website for reference purposes. ! Businesses have access to EG 24/7 by phone and email for advice and discussion. ! We provide templates and tools and instructions on how to use them. The biggest challenge is businesses setting aside quality time to do the work! © Copyright Economic Gardeners Pty Ltd 1988 - 2007 25
  26. 26. The Focus of the Program - Participants Businesses can be categorised into various size groups: ! Just starting quot; Established, small and owner-operator (turnover < $2m) ! Small corporates with staff (turnover > $2m) Businesses can also be categorised in terms of their aspirations: ! Elephants (large and unresponsive management) quot; Gazelles (entrepreneurial) quot; Would-be gazelles ! Low aspiration They must be serious about growing and improving their business! © Copyright Economic Gardeners Pty Ltd 1988 - 2007 26
  27. 27. The Program Structure 1. A structured selection process ! To meet region development objectives ! To meet selection criteria 2. A Preliminary Program ! To introduce the program ! To establish a common starting point ! To build the network and trust 3. The Development Program ! To build the business plan ! To build a business development plan 4. A On-going Program ! To maintain the pressure on continued business improvement © Copyright Economic Gardeners Pty Ltd 1988 - 2007 27
  28. 28. What are the Outcomes for Participating Businesses? ! Participants build: ! A new business operating culture ! A capacity to use more tools ! A philosophy of continuous learning ! A comprehensive business plan ! A fully documented business development plan ! Membership of a supportive network ! Pride and confidence in their business and its operations ! Strong linkages with other local businesses © Copyright Economic Gardeners Pty Ltd 1988 - 2007 28
  29. 29. What are the Outcomes for Other Businesses? ! Flow-on/linkage effects ! Growing local businesses generates demand for other materials and services provided by other local businesses ! All businesses benefit from building a perception that the locality is a good place to be in business ! More diverse businesses means greater local linkages © Copyright Economic Gardeners Pty Ltd 1988 - 2007 29
  30. 30. What are the Outcomes for a Council? ! An enhancement to their economic development strategy and program (one that they could not readily do themselves) ! A program to grow the local economy through key business growth and maximisation of linkage effects ! Begin developing the diversity of the economy to reduce present instability ! Demonstration that Council is supportive of local businesses ! Development of the perception that this is a “business friendly” place to be ! Establishing a culture of business innovation and entrepreneurship © Copyright Economic Gardeners Pty Ltd 1988 - 2007 30
  31. 31. What are the Outcomes for the Community? ! A growing economy provides a growing base for building community programs and resources ! Pride in being in a growing community that is successful including successful businesses ! Enhanced opportunities for employment of all family members in rewarding jobs ! Greater stability in the regional economy and community © Copyright Economic Gardeners Pty Ltd 1988 - 2007 31
  32. 32. The Add-On Phase ! The present focus is on businesses on the move ! Now to build the entrepreneurial and innovative cultures! ! Our businesses form the nucleus of an ‘innovative business group’ on the move and hunting down new opportunities ! Building entrepreneurial capacity and support. ! A business leadership group © Copyright Economic Gardeners Pty Ltd 1988 - 2007 32
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