Economic gardening is an entrepreneur-focused economic development strategy that helps existing businesses grow, rather than recruiting outside companies. It involves providing information and expertise to help second-stage companies address strategic issues like market expansion and leadership transitions. Economic gardening specialists use business intelligence tools and a personalized approach to help entrepreneurs make better decisions and resolve growing pains. Their goal is to support an entrepreneurial culture and help communities serve growth-oriented businesses.

1. Economic
Gardening
Economic Gardening
An entrepreneur-oriented approach to economic prosperity
I t may seem ironic in today’s global
economy, but place has become
more important than ever. Natural
resources, low-cost labor and tax
incentives used to be key drivers to
comes in — and why it takes a neutral
third party like the foundation to get
involved and be a catalyst for change.”
Economic gardening takes an
entrepreneurial approach to job
strategies.”
Economic gardening helps establish
an entrepreneurial culture within
communities and sets itself apart from
other economic-development strategies
regional prosperity. Today, however, the creation. Sometimes referred to as a by its target audience, tools and timing
ability to support innovative companies “homegrown” or “inside-out” strategy, of services.
and entrepreneurs is also a critical economic gardening focuses on helping For example, traditional economic-
component to economic growth. existing growth-oriented companies development programs offer tax
“We’re living in a period of become larger. incentives, workforce development
exponential economic change, “We’re not saying that attraction services and infrastructure
which means economic developers and recruitment activities should improvements to attract and retain
and community leaders must serve be discontinued, but they’ve been companies that may be considering
businesses differently,” says Mark overemphasized due partly to relocation — strategies that emphasize
Lange, executive director of the Edward competitive and political pressures,” movement rather than growth.
Lowe Foundation in Cassopolis, Mich. Lange says. “A balanced approach is the At the other end of the spectrum,
“That’s where economic gardening key to building effective programs and there are a variety of small-business-

2. Edward Lowe Foundation
ECONOMIC GARDENING
development organizations
that serve startups and small
businesses by providing
assistance with operations and
management issues such as
business-plan review, cash-
flow analysis and succession
planning.
In contrast, economic
gardening deals with
growth-oriented
companies and strategic
issues like penetrating
new markets, refining
business models,
developing teams
and embracing new
leadership roles. Economic gardening
provides information and decision- less dramatic than gazelles but
making assistance to companies that are remains impressive.
transitioning from small to large, with This growth orientation is a
services customized to meet the just-in- critical distinction that separates
time needs of this audience. entrepreneurs from other types of
Communities currently nurture small businesses. For example, some
their economies through economic individuals may be self-employed • Market adjustments.
development, workforce development because they like being their own boss, • Outgrowing early
and small-business development. “But but job creation isn’t part of their game management teams and their role as
there is a fourth dimension we need to plan. Then there are small businesses founders.
add,” Lange says. “Growth-company that provide jobs in a community, but • Scaling business models to handle
development is the missing piece, which their growth is somewhat restricted by growth.
is why the Edward Lowe Foundation is the local trading area they serve. • Understanding capital requirements.
an advocate for economic gardening.” In contrast, second-stage “It’s hard for entrepreneurs to
entrepreneurs are significant job resolve these issues on their own —
Second-stage benefits creators because of their focus on or even identify them accurately,”
Some of the greatest returns growth. And because they often have says Dino Signore, manager of
of economic gardening come national or global markets, they bring program development at the Edward
from working with second-stage outside dollars into the community. Lowe Foundation. “For one thing,
entrepreneurs — companies that have “It’s time we treat growth-oriented moving from Stage 1 to Stage 2
advanced beyond the startup stage with entrepreneurs differently than small brings on an entirely new set of
the intent and potential for additional businesses — giving them their own challenges. Entrepreneurs face more
growth. (Second-stagers typically have place in the overall scheme of economic responsibilities, and everything becomes
10 to 99 employees and generate about development,” says Lange. “The magnified. Their core competencies
$1 million to $50 million in annual foundation can play an important role become stronger, but so do their
revenue, depending on their industry.) by helping community organizations weaknesses.”
Many people associate second stage collaborate more effectively to serve Making things even more difficult,
with gazelles (companies with extremely this audience.” changes in markets, management,
high growth). Although gazelles pass business model and money are
through second stage, which makes it Understanding key issues interrelated, Signore continues. “Being
a good place to find them, they’re only growth companies face out of sync in one area can cause you to
part of the story. Second stage also According to Doug Tatum, author be out of sync in others.”
includes: 1) companies with potential of “No Man’s Land,” entrepreneurs These conditions manifest
for high growth and 2) companies face four key challenges as their themselves in a variety of ways. Some
generating steady growth that may be companies transition from small to big: common symptoms: not being able

3. Edward Lowe Foundation
ECONOMIC GARDENING
to fulfill commitments to customers; that profile customers or show gaps in adds. “The ones generating today’s
quality problems become more market coverage. breakthroughs will become either
pressing; and decisions become • Search-engine optimization tools can updated or outdated quickly.”
increasingly complex and no longer raise visibility in search-engine results
intuitive. In addition, reporting systems and increase traffic on Web sites. The power of connectivity
no longer provide good information, • Social-media monitoring The tools and techniques described
and founders feel they’re no longer able applications can track Web sites, blogs here highlight the “one-to-one”
to lead every aspect of the business. and online communities to see what approach in economic gardening and
To help entrepreneurs resolve people are saying about companies set the stage for an ongoing relationship
growing pains, economic-gardening and products — and reveal important between a support organization and
organizations employ a variety of market influencers. individual companies.
techniques. These fall into two broad “Yet it’s important to note that these Another important aspect of
categories: decision making and tools aren’t a panacea to entrepreneurs’ economic gardening is connectivity (a
information. problems,” Lange says. “one-to-many” approach), which uses
Businesses are biological entities, peer-to-peer networks, recognition
Making better decisions where there is constant flux due to events, just-in-time workshops and
Entrepreneurs need help with employees, customers, markets and discussion groups to attract growth
strategy, identifying what they’re good economic conditions, he explains. entrepreneurs and serve their
at and finding a sustainable competitive Applying mechanical rules (where the immediate, pressing needs.
advantage. same process always yields the same “Activities like these are critical to
They also need to shift their output) won’t work. Instead, economic- launching and maintaining an overall
leadership role as the company grows, gardening specialists leverage these economic-gardening strategy,” says
build a strong management team, create tools to find new ideas and approaches. Lange. “They nurture the culture and
a clear vision, and then communicate it “What’s more, economic-gardening connectivity that is so important to
consistently. tools are constantly changing,” Lange growing regional economies.”
This is where temperament tools
can help. Understanding temperament
(personality preferences, such as Working with entrepreneurs
extroversion and introversion or how
people process information), can help
entrepreneurs recruit high-performance
The need for speed
teams that balance their own inherent
strengths and weaknesses. Being
aware of temperament can also ensure
E conomic-gardening specialists
function much like an
outsourced team of experts. Their
One challenge is getting up to
speed with entrepreneurs.
During initial meetings,
employees are in positions that enable goal is not to dictate or implement considerable time is spent
them to play to their strengths. solutions, but to help CEOs identify discussing an entrepreneur’s
issues that might be hindering background, company structure,
Sophisticated information growth — and point them to goals and growth issues. Then, as
Economic-gardening specialists can new tools, business concepts economic-gardening specialists learn
also provide valuable information by and information to make better more about each company, they
using business-intelligence tools that decisions. become more efficient at delivering
smaller or younger companies either “Economic gardening is about actionable information. It’s a back-
can’t afford or don’t know about. For applying just-in-time, high-end and-forth, ongoing relationship.
example: expertise rather than counseling,” To gain trust and truly make
• Sophisticated databases can identify says Steve Quello, founder of CEO a difference, economic-gardening
market trends, potential partners or Nexus in Winter Park, Fla. and organizations must act like the
competitors and unknown resources an economic-gardening expert. entrepreneurs they serve.
often buried deep inside industry “Entrepreneurs know more about “That means being nimble and
information. their companies than anyone else. nonbureaucratic,” Quello explains.
• Geographic information systems Give them a better view of the “Entrepreneurs need answers
can track customer expenditures, big picture, and they can make in hours or days, not weeks or
psychographics and demographics and adjustments themselves.” months.”
then create color-shaded, density maps

4. Edward Lowe Foundation
ECONOMIC GARDENING
Economic gardening at work
A closer look at helping growth companies
I
n November 2008 the Edward Lowe Using the Keirsey Temperament PlayStation or Xbox console.
Foundation hosted an economic-gardening Sorter, Santos and Gibbons determined McAlindon was initially trying to
workshop led by Chris Gibbons, director of the manager was an “artisan” (liking
find game developers in alpha-stage
business and industry affairs for Littleton, Colo., freedom and movement) while a development and convince them to
who pioneered the concept of economic gardening “guardian” (who has a preference for
include Switchblade in their products.
in the late 1980s. Assisting Gibbons was the details and deadlines) was better suited to
The JumpStart team began researching
JumpStart team (experts in different economic- his assigned responsibilities. blogs, portals and other community
gardening disciplines who work on projects outside In response, Santos diverted some of
sites looking for concentrated groups of
of Littleton.) The three-day event focused on the manager’s tasks to others, allowing the
people that influence a market. Instead of
helping second-stage entrepreneurs from different manager to play to his strengths. Santos
game developers, the team recommended
industries. Below is a quick look at challenges also brought in a computer programmer
that McAlindon target end-users by
faced by two participants. to design a software application that
setting up competitions between gamers
improves communications between the
who use keyboards and gamers who use
For Victor Santos, CEO of NaturePlex firm’s production and sales departments.
controllers.
LLC, strategy was a key issue. With many employees contributing “In the gaming world, it appears to
Based in Memphis, Tenn., NaturePlex information, the application makes it easy
be about bragging rights,” Gibbons says,
produces nutritional supplements, to see where NaturePlex is — and where
noting that opinions run hot and heavy
medicated creams, and other health- it needs to be, Santos says. “It contains all
in online blogs — peppered with plenty
related products for dollar discount stores. the small details that can get overlooked
of four-letter words — as to whether
The JumpStart team helped Santos realize when communicating with someone a keyboard or controller provides the
that while NaturePlex is in a commodity verbally or even through e-mail.” The
superior gaming experience.
market, the company has established a payoff: fewer meetings and less confusion.
After working with the JumpStart
niche of higher-margin, natural products Since working with Gibbons and the
team, McAlindon began working with
that it can expand to bolster growth and JumpStart team, things have improved
a company that specializes in online
profits. substantially at NaturePlex. “I didn’t
competitions to build an “arena” for
Blue Orb’s Web site, with
keyboard-controller contests
“ I like the specificity of the JumpStart team’s reports. It’s one thing to
suggest viral marketing on Web sites. That’s very different than saying:
slated to begin in fall 2009.
He expects the competitions
Here’s the link, here’s what they do and here’s a contact for you.
— Pete McAlindon
” to accelerate both visibility
and sales for Blue Orb. “Once
PC players know they can
compete with a controller,
they’ll want to download our
With that in mind, Santos is launching change my core strategy, but I’m refining software so they can compete,” he says.
a line of all-natural, EPA-approved it,” Santos says. McAlindon says the economic-
biopesticides. Santos is also using Temperament was also an eye-opener, gardening program differed from
sampling to increase sales for high-margin Santos adds: “I knew something was off, other types of business assistance he
items, such as including trial-size portions but I thought it was a matter of me not has received — with speed being a key
of vitamin E cream with antifungal foot communicating, which proved not to be hallmark. For example, when McAlindon
ointment. the case. After meeting with Chris, it was found the Web-competition developer, he
Another concern for Santos: Although like a bolt of lightning hit me.” asked the JumpStart team if there were
talented and hard-working, one of his For Pete McAlindon, another program other firms he should investigate.
managers was not detail-oriented, which participant, mining social media provided “They got back to me the same day,
was causing production problems. new insights into business development. saying “Here are two other companies,
“Temperament is a slotting problem,” CEO of Blue Orb in Maitland, Fla., but the one you found appears to be best
Gibbons explains. “Every job has certain McAlindon is targeting the online gaming and here’s why,” McAlindon says.
requirements, and every temperament industry. His company’s Switchblade “Could I have done this research?
has certain strengths and weaknesses, software maps the functions of a mouse Perhaps, but it would have taken me
depending on the situation. The idea is to and keyboard into a controller (joystick) two days or longer. They got back to me
match the strengths of your employees to that allows people to play online games within a few hours, which was a huge
their job requirements.” on their computers as if they were using a benefit.”