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The Indiana Business Growth Network IEDA Annual Meeting, Indianapolis March 5, 2011 Scott Hutcheson Purdue Extension Purdu...
Successful Communities Build Networks to Support Business Growth Focus BOTH  on new enterprises (entrepreneurship) and hel...
Which Are  “Growth” Businesses? <ul><li>BBQ Restaurant </li></ul><ul><li>Local Drycleaner </li></ul><ul><li>Beauty Shop </...
Growing Businesses Are  Innovative Businesses <ul><li>An innovative business introduces new products and/or processes each...
Growth & Innovation Can Come from  Unexpected Places <ul><li>A BBQ restaurant starts bottling and selling sauce </li></ul>...
Growth & Innovation Can Happen Anywhere Helena, Montana Pink Gloves Boxing
A Tale of Two  Growth Companies
A Tale of Two Growth Companies <ul><li>Founded in Washington (State) in 1971 </li></ul><ul><li>Initial investment - less t...
A Tale of Two Growth Companies <ul><li>Founded in Washington (State) in 1971 </li></ul><ul><li>Initial investment - less t...
A Tale of Two Growth Companies <ul><li>Founded in Washington (State) in 1971 </li></ul><ul><li>Initial investment - less t...
A Tale of Two Growth Companies <ul><li>Founded in Indiana in 1985 </li></ul><ul><li>Initial investment - less than $2,000 ...
A Tale of Two Growth Companies <ul><li>Founded in Indiana in 1985 </li></ul><ul><li>Initial investment - less than $2,000 ...
A Big Difference Between Starbucks and Papa John’s
A Big Difference Between Starbucks and Papa John’s
The Billion $ Question <ul><li>What makes a community a great place for businesses to  grow ? </li></ul>
Understanding Business Growth Stage 4  (500+ Employees) Stage 3  (100-499 Employees) Stage 2  (10-99 Employees) Stage 1  (...
Second-Stage Businesses <ul><li>Privately-held businesses </li></ul><ul><li>10-99 employees  </li></ul><ul><li>Revenue of ...
Second-Stage Firms in Indiana YourEconomy.org – Edward Lowe Foundation Establishments Jobs MSA 2006 2008 2006 2008 Self-Em...
Focusing on  Business Growth  is Something New <ul><li>Business Attraction  </li></ul><ul><li>Cheap land </li></ul><ul><li...
What “Information” Do Second Stage Firms Need? <ul><li>Help in articulating and realigning with their  Core Business Strat...
Success in Littleton <ul><li>Littleton, CO developed and began to execute the strategy in 1989 </li></ul><ul><li>Focused o...
Indiana Business Growth Network <ul><li>IBGN is a growing network of business- support organizations (Purdue, SBDC, LEDOs)...
Example IBGN Projects <ul><li>Analytical Test Laboratory needed information about global competitors and ideas to attract ...
Adding Business Growth to Your Strategy Portfolio <ul><li>Investing in  Business Growth  services to help your community’s...
For More Information <ul><li>Scott Hutcheson </li></ul><ul><li>Purdue Extension & Purdue Center for Regional Development <...
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IEDA Business Growth Presentation

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March 4, 2011 Presentation to the Indiana Economic Development Association

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  • Civic Engagement Staff Development, February 27-28, 2007
  • Civic Engagement Staff Development, February 27-28, 2007
  • Civic Engagement Staff Development, February 27-28, 2007
  • Civic Engagement Staff Development, February 27-28, 2007
  • Civic Engagement Staff Development, February 27-28, 2007
  • Civic Engagement Staff Development, February 27-28, 2007
  • Civic Engagement Staff Development, February 27-28, 2007
  • Civic Engagement Staff Development, February 27-28, 2007
  • 5154965 Civic Engagement Staff Development, February 27-28, 2007
  • Transcript of "IEDA Business Growth Presentation"

    1. 1. The Indiana Business Growth Network IEDA Annual Meeting, Indianapolis March 5, 2011 Scott Hutcheson Purdue Extension Purdue Center for Regional Development
    2. 2. Successful Communities Build Networks to Support Business Growth Focus BOTH on new enterprises (entrepreneurship) and helping existing businesses grow. Source: Ed Morrison, Distributed under a Creative Commons 3.0 license.
    3. 3. Which Are “Growth” Businesses? <ul><li>BBQ Restaurant </li></ul><ul><li>Local Drycleaner </li></ul><ul><li>Beauty Shop </li></ul><ul><li>Personal Trainer </li></ul><ul><li>Mini Blind Manufacturer </li></ul><ul><li>Medical Device Developer </li></ul>
    4. 4. Growing Businesses Are Innovative Businesses <ul><li>An innovative business introduces new products and/or processes each year </li></ul><ul><li>Only 15% of businesses are typically innovators – usually have high growth trajectory </li></ul>
    5. 5. Growth & Innovation Can Come from Unexpected Places <ul><li>A BBQ restaurant starts bottling and selling sauce </li></ul><ul><li>A dry cleaners develops a new “green” process and licenses the new process </li></ul><ul><li>A beauty shop develops a new way to train stylists and goes nationwide </li></ul><ul><li>http://www.acenetworks.org/upload_files/file/Regional%20Flavor%20June.pdf </li></ul>
    6. 6. Growth & Innovation Can Happen Anywhere Helena, Montana Pink Gloves Boxing
    7. 7. A Tale of Two Growth Companies
    8. 8. A Tale of Two Growth Companies <ul><li>Founded in Washington (State) in 1971 </li></ul><ul><li>Initial investment - less than $8,000 </li></ul><ul><li>2006 sales were $7.8 billion </li></ul><ul><li>Created 145,800 jobs </li></ul><ul><li>This is their founder </li></ul>
    9. 9. A Tale of Two Growth Companies <ul><li>Founded in Washington (State) in 1971 </li></ul><ul><li>Initial investment - less than $8,000 </li></ul><ul><li>2006 sales were $7.8 billion </li></ul><ul><li>Created 145,800 jobs </li></ul><ul><li>This is their founder </li></ul><ul><li>This is their logo </li></ul>
    10. 10. A Tale of Two Growth Companies <ul><li>Founded in Washington (State) in 1971 </li></ul><ul><li>Initial investment - less than $8,000 </li></ul><ul><li>2006 sales were $7.8 billion </li></ul><ul><li>Created 145,800 jobs </li></ul><ul><li>This is their founder </li></ul><ul><li>This is their logo </li></ul>
    11. 11. A Tale of Two Growth Companies <ul><li>Founded in Indiana in 1985 </li></ul><ul><li>Initial investment - less than $2,000 </li></ul><ul><li>2006 sales were $1 billion </li></ul><ul><li>Created 14,743 jobs </li></ul><ul><li>This is their founder </li></ul>
    12. 12. A Tale of Two Growth Companies <ul><li>Founded in Indiana in 1985 </li></ul><ul><li>Initial investment - less than $2,000 </li></ul><ul><li>2006 sales were $1 billion </li></ul><ul><li>Created 14,743 jobs </li></ul><ul><li>This is their founder </li></ul><ul><li>This is their logo </li></ul>
    13. 13. A Big Difference Between Starbucks and Papa John’s
    14. 14. A Big Difference Between Starbucks and Papa John’s
    15. 15. The Billion $ Question <ul><li>What makes a community a great place for businesses to grow ? </li></ul>
    16. 16. Understanding Business Growth Stage 4 (500+ Employees) Stage 3 (100-499 Employees) Stage 2 (10-99 Employees) Stage 1 (1-9 Employees)
    17. 17. Second-Stage Businesses <ul><li>Privately-held businesses </li></ul><ul><li>10-99 employees </li></ul><ul><li>Revenue of $750,000 to $10 million </li></ul><ul><li>Dealing with growth issues instead of survival issues </li></ul><ul><li>Intent and capacity to keep growing </li></ul>
    18. 18. Second-Stage Firms in Indiana YourEconomy.org – Edward Lowe Foundation Establishments Jobs MSA 2006 2008 2006 2008 Self-Employed 34.5% 36.1% 5.7% 6.4% Stage 1 (1-9) 55.4% 55.7% 28.9% 30.6% Stage 2 (10-99) 9.5% 7.7% 36.9% 35.9% Stage 3 (100-499) 0.5% 0.4% 15.4% 14.8% Stage 4 (500+) 0.07% 0.05% 13.1% 12.3%
    19. 19. Focusing on Business Growth is Something New <ul><li>Business Attraction </li></ul><ul><li>Cheap land </li></ul><ul><li>Cheap labor </li></ul><ul><li>Cheap taxes </li></ul><ul><li>Cheap utilities </li></ul><ul><li>Business Growth </li></ul><ul><li>Information </li></ul><ul><li>Infrastructure </li></ul><ul><li>Networks </li></ul>
    20. 20. What “Information” Do Second Stage Firms Need? <ul><li>Help in articulating and realigning with their Core Business Strategy </li></ul><ul><li>Market Intelligence to answer important questions </li></ul><ul><li>Guidance on search engine optimization and effective use of social media </li></ul><ul><li>Leadership & management team development to make sure people are slotted right </li></ul>
    21. 21. Success in Littleton <ul><li>Littleton, CO developed and began to execute the strategy in 1989 </li></ul><ul><li>Focused on “wealth” creation not “job” creation </li></ul><ul><li>Eliminated all incentives and tax breaks for business recruitment </li></ul><ul><li>Since 1989, more than doubled the number of jobs from 15,000 to 35,000 </li></ul><ul><li>Sales tax revenue tripled from $6.8 million to $19.6 million </li></ul>
    22. 22. Indiana Business Growth Network <ul><li>IBGN is a growing network of business- support organizations (Purdue, SBDC, LEDOs) piloting economic gardening and other business-growth tools with two regions currently engaged: </li></ul><ul><ul><li>North Central Indiana (Greater Lafayette and Greater Kokomo </li></ul></ul><ul><ul><li>Central Indiana </li></ul></ul>
    23. 23. Example IBGN Projects <ul><li>Analytical Test Laboratory needed information about global competitors and ideas to attract more potential customers to their website </li></ul><ul><li>Manufacturer needed list of potential customers that meet certain criteria including a commitment to sustainability </li></ul>
    24. 24. Adding Business Growth to Your Strategy Portfolio <ul><li>Investing in Business Growth services to help your community’s Second Stage companies grow. </li></ul><ul><li>Demonstrate Value to a new group of companies in your community </li></ul>
    25. 25. For More Information <ul><li>Scott Hutcheson </li></ul><ul><li>Purdue Extension & Purdue Center for Regional Development </li></ul><ul><li>Burton D. Morgan Center for Entrepreneurship </li></ul><ul><li>1207 W. State Street, Room 227 </li></ul><ul><li>765-494-7273 (office) </li></ul><ul><li>765-479-7704 (mobile) </li></ul><ul><li>hutcheson@ purdue.edu </li></ul>
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