Webinar given for Lorman about effective strategies that local governments can use to grow their small business sector.

1. Leaders or Feeders:
What Governments Can Do
To Help Grow Small
Businesses
Della G. Rucker, AICP CEcD
Principal, Wise Economy Workshop
Wiseeconomy.com
LocalEconomyRevolutionbook.com
www.wiseeonomy.com

2. Your Presenter
• All those letters?
• Economic
Revitalization/Public
Engagement
• Building: Communities
that work long term–
– Strong economy
– Resilient economy
– Invested people
www.wiseeonomy.com

3. Who’s here?
www.wiseeonomy.com

4. Not all small businesses are the same
www.wiseeonomy.com

5. What’s With Them?
Understanding why
governments and small
businesses don’t
understand each other
(or, Governments are
from Alpha, Small
Businesses are from
Beta)
www.wiseeonomy.com

6. The World of a Small Business
• Independence
• Over-capacity
• Speed
• Myopia
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7. Independence
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8. Over Capacity
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9. Speed
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10. Myopia
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11. And… the world of local government
• Responsibility
• Protecting
• Scrutiny
• Caution
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12. Responsibility
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13. Protecting
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14. Scrutiny
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15. Caution
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16. Results:
www.wiseeonomy.com

17. What does that sound like?
“Why do I need to follow that regulation/get that
permit/live by your rules?”
“Just get out of my way and let me run my
business.”
“You’re taking too long!”
“That’s what the regulation says.”
“You can’t have an exception.”
“This is the process.”
www.wiseeonomy.com

18. Two Models: Leaders or Feeders
• Brad Feld, Startup Communities
– Boulder, CO
– Tech
– “Entrepreneur Ecosystems”
– “Government should always be Feeder, not
Leader.”
– [Government can’t do entrepreneurship right –
only entrepreneurs can]
– [Economic development is a waste]
www.wiseeonomy.com

19. Hm.
• Della sez:
– Tech = subset of small business
– Small businesses have a much wider range of
needs than tech alone.
– Ecosystems aren’t just for tech dudes
– Local government has a unique role, unique
perspective, unique assets. Needs to be part of
the equation.
– Feeding does not equal useless. Everything needs
to eat.
www.wiseeonomy.com

20. Leaders |Feeders
• Control
• Direct
• Requirements
• Hierarchy
• Reporting
• Make it Happen
• Credit
• Support
• Guide
• Resources
• Network
• Information
Sharing
• Help it happen
• ?
www.wiseeonomy.com

21. Leaders |Feeders
• Recruitment
• Sales
• Star Chamber
• Confidential
• Small # Big Projects
• Large Money to
Small #
• Staff spends time on
a few big businesses
• Connection
• Share information
• Everyone we can get
• Transparent
• Large # Small Projects
• Small money to large
#
• Staff spends time on…
www.wiseeonomy.com

22. Consider the Practical Matters:
• More small businesses + less staff and budget = … a
big problem for local governments.
• More demand for transparency (read: everyone can
be their own investigative reporter) = higher risk in
“confidential” plans and deals.
• More economic dependence on small businesses =
more dependence on businesses that are
overextended, not always seeing the whole picture,
and often flying by the seat of their pants.
www.wiseeonomy.com

23. Therefore, we need to change:
• Small number of intensive interactions to
large number of less intensive “touches”
• Build self-reinforcing connections – networks
• Enable, within reason
• Open up.
• Partner.
• Focus on what we uniquely bring to the table
www.wiseeonomy.com

24. The Big Secret
• Most of the time we can make a better impact
on our local economy and community if we
take a Feeder Role, rather than a leader.
– Feeder =/= passive or unimportant.
– Feeder = adding necessary energy to system.
• But in some situations, we need to be a
Leader. More on that shortly.
www.wiseeonomy.com

25. The Care and Feeding of Small
Businesses
www.wiseeonomy.com

26. OK. So what do local governments
“uniquely bring to the table?”
• Convening power
• Connector
• Attention-Getter
• Space owner
• Big picture view
• Fair Rules Administrator
• Resource-sharer
• Partnership-builder
www.wiseeonomy.com

27. So what can we do?
• Convene Connecting events:
– Not just “Networking”
– Useful information
– Shared group exploration
• Your Role
– Host
– Structure
– Institutional memory
• Example: Annapolis EDC
www.wiseeonomy.com

28. So what can we do?
• Direct popular/media Attention to small
business ecosystem
– You have it, they don’t
– They want it/need it
• Your role:
– Story-finder
– Media/business connector
• Example: Brimfield, Ohio Police Department
www.wiseeonomy.com

29. Give ‘em a little Space
• Types of space
– Work space
– Selling space
– Meeting space
• Your role:
– Space finder
– Space promoter
– Space manager
• Example: Allegheny Valley EDC Makerspace
• Example: Findlay Market, Cincinnati
www.wiseeonomy.com

30. Fair Rules Administrator
• Communicate permit/license/zoning/etc.
processes
– Communicate clearly – the how and the why
– They want to know what to expect
– Make it predictable
• Your role:
– Make it clear
– Make it consistent
– Make it fair
www.wiseeonomy.com

31. Resource Director
• You have:
– Connections to state
– Connections to foundations
– Connections to other businesses/people in
community
• Your role:
– Tell them what’s available
– Tell them more than once
– Connect them
– Help them research new avenues for help
• Example: Ann Arbor SPARK Virtual Business Advisor
www.wiseeonomy.com

32. Partnership-Builder
• You know who else is working on what in your
community.
• Your small business people don’t
• Your Role:
– Connect your powers with those of other
organizations.
– Make it happen
www.wiseeonomy.com

33. When do you have to Lead?
• Your community needs entrepreneurs and
small businesses but they’re not thriving.
• Your small businesses seem dispirited, tired,
burned out or just worn out.
• No one else in the community is stepping up
to the plate
• Example: Kalamzoo, MI
www.wiseeonomy.com

34. Tips for Leading
• Don’t do it alone
• Pull in everyone you can get
• Share problem identification and
strategy development
• Share jobs
• Maintain long term horizon
• Test programs before big
investments
• Be ready to shift to Feeder
• Don’t worry if small business
people don’t show up right away
www.wiseeonomy.com

35. Let’s talk(ish…)
www.wiseeonomy.com

36. Thank you!
For more information:
www.wiseeconomy.com
www.localeconomyrevolutionbook.com
Twitter: @dellarucker
Also on LinkedIn, Facebook, SoundCloud,
YouTube, etc.
www.wiseeonomy.com