1. Non-resident companies had the highest percentage change in establishments (-6.2%) and the largest change in jobs (-8.1%) between 2005-2007. 2. The number of resident companies grew by 4.6% in this time frame, adding 2.7% of new jobs. 3. Net new establishments grew 3.7% mostly from first stage companies, while opened establishments lost 4.3% of jobs. Expansion of existing companies added 3.42% of new jobs.

1. Building Community Around
Growing Companies

3. Second Stage Companies
Growth Issues vs Survival
Intent to Grow
Capacity to Grow
Enterprise Composition
Privately Held Businesses
10-99 Employees
Revenue $1 M to $50 M
Double-Digit Rate of Growth

4. Importance of Second-Stage Companies
Create jobs
Attract money
Attract talent
Drive culture
Drive community direction
Affect philanthropy
Drive policy decisions through identified needs

5. Understanding the Second-Stage Entrepreneur
If you really want to
understand, you must listen
and be willing to look beyond
the obvious.

6. How to Spot a Second-Stager
Moves fast and faces complex problems, often many at the same time
Not attracted to traditional ways of learning
Content must be relevant instead of unique
Need to build systems so they can step away from the business
Too much business can trip them up faster than too little – capacity issues
Hard to gain their trust / High Trust level of Peers
Easily frustrated by bureaucracy
Process everything through the lens of their business
May love creating but not managing
Very positive
Strong internal locus of control

7. Does Your Culture Look Like Theirs?
Do you listen to ideas, then act and implement quickly?
Can you live with making mistakes?
Are you willing to change some of your direction to serve your
audience?
Do you understand outside audiences well enough to find and
match resources?
Is it OK if you don’t know everything?

8. Our Role in Second Stage
Spreading the word
Research and data analysis
Program development
Community convener

9. Our Programs

10. Your Economy
Longitudinal Database
15 Years / 37 Million records
Key Measurements:
Resident Enterprises
Non-Resident Enterprises
Non-Commercial Enterprises
Births and Deaths of Establishments
Impact on Jobs

11. Elkhart County
Key Trends
2005-2007

12. Document A
Relationships of Establishments to Jobs
1. No n r e s i d e n t C o m p a n i e s h a d t h e h i g h e s t % c h a n g e ( - 6 . 2 % ) c o m p a r e d t o o t h e r
establishment criteria (the only one with a negative number)
2. Nonresident Companies had the largest change in the number of jobs (-8.1%)
3 . N u m b e r o f Re s i d e n t C o m p a n i e s g r e w b y 4 . 6 % i n t h a t t i m e f r a m e
4 . Re s i d e n t C o m p a n i e s a d d e d 2 . 7 % o f j o b s

13. Document B Net New Establishments
OPENED RESIDENT
ESTABLISHMENT grew 3.86 %
Relocated firms fell 0.16%
Net New Establishments
grew 3.7 %
Mostly from first stagers ( 384 )

14. Document B continued Net New Jobs
“Opened” establishments lost 4.3% of
the jobs
Expansion of companies added 3.42% of
the jobs
Relocated establishments had a
negative impact -.03 on jobs
Net new jobs was -.09%
How much worse would it have been without expansion of existing firms ?

15. The Bottom Line
Job growth comes from “resident” company
expansion
Economic Gardening provides resources to
growth oriented “Resident” companies
Do you know who the growth oriented “expansion” companies are?
Do you know “how” you add value to these establishments?
How do you help first stages make the “leap” to second stage?
How do you help Second-stagers sustain and thrive?

16. Don’t Make it so Hard!
Let your audience be your guide
Unleash your creativity
Trust your audience
Trust yourself
Tell everybody what you’re doing
Tell your own audience what you’re doing
Tell everyone about your audience