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Bo Beaulieu & Michael Wilcox
Purdue Center for Regional Development &Extension Community Development Program
Transforming Your Local and Regional Economy – Gibson County
September 4, 2014
Special Thanks
• Economic Development Administration,
Chicago Regional Office
• Kim Howard, Southwest ISBDC
• Our Purdue Extension Colleagues
Something to Ponder
The literature on job creation has frequently found that most jobs are created from existing employers, yet many local economic development organizations continue to emphasize new industry recruitment.
Daniel Davis
The Federal Reserve Bank of St. Louis.
May 2011
Our Focus Today
• Examine the economic resources and opportunities that exist in your county/region (but are often overlooked) o The stages of your local establishmentso Regional competitive assets
• Highlight entrepreneurship as an important aspect of your economic development stategies.
• Identify ways you can cultivate entrepreneurship in your county & region
A Look at the Four Stages
1st 2nd
3rd 4th
Data Source: NETS 2011, Edward Lowe, IEGC, PCRD
Establishments in Gibson County, 2011
Total 1,427 Stage 1 1,184 Stage 2 219 Stage 3 23 Stage 4 1
Employment
Total 14,692 Stage 1 3,734 Stage 2 5,818 Stage 3 4,565 Stage 4 575 Sales ($) in 2011
Total $1,474,693,400 Stage 1 299,961,689 Stage 2 461,615,609 Stage 3 655,906,502
Stage 4 57,209,600
Definition of company stages
• Stage 0 (self-employed)
• Stage 1 (2-9 employees)
• Stage 2 (10-99 employees)
• Stage 3 (100 to 499 employees)
• Stage 4 (500+ employees)
• This table is based on the National Establishment Time Series (NETS) database
• The definitions for stages are based on research by the Edward Lowe Foundation
• A firm can have more than one establishment within the same county
Establishments in Gibson County :The Four Stages
Data Source: NETS 2011, Edward Lowe, IEGC, PCRD
Gibson CountySales Industry Establishments NAICS Employees
Stage 1 (2-9 employees)8,276,000 Fertilizer and fertilizer materials 424910 86,000,000 Grain elevators 424510 62,700,000 Pipelines, nec 486990 9
2,285,700 Gases, liquefied petroleum (propane) 424720 8
2,227,500 Gasoline service stations 447110 3Stage 2 (10-99 employees)
23,375,300 Electric services 2211 6020,000,000 Supermarkets, independent 453110 8016,875,000 Bowl covers, plastics 326199 5013,235,300 Automobiles, new and used 441110 309,739,700 Electric services 2211 25
Stage 3 (100 to 499 employees)136,356,100 Electric services 2211 350126,000,000 Distribution, electric power 221122 36051,873,691 General medical and surgical hospitals 622110 26050,000,000 Motors, electric 335312 25043,740,000 Department stores, discount 452112 225
Stage 4 (500 + employees)57,209,600 Seats, automobile 336360 575
Top Five Sales Establishments by Company Stage, 2011
A Look at Your Working Labor Force
9
Gibson County, IN
Gibson County Commute and Labor Sheds CommutingVariable Count, 2011 % Share
Employed in Gibson County 16,561 100
• Employed in county but living outside 10,127 61.1
• Employed and living in county 6,434 38.9
Living in Gibson County 16,045 100
• Living in county but employed outside 9,611 59.9
• Living and employed in county 6,434 40.1
• Gibson County is an employment center given that larger number of workers are commuting into the county for work than are commuting outside the county for work.
• Net commuting (In- commuters minus out- commuters) is positive in the county with a gain of 516 commuters.
• Gibson County residents are commuting to only a handful of counties, mainly to Evansville metropolitan area for purposes of securing work.
• On the other hand, residents from several surrounding counties are commuting to Gibson County for employment purposes
• The footprint of Gibson County as a workplace extends well beyond the boundaries of the county.
Source: OTM, LEHD, U.S. Census Bureau; PCRD
10,127
6,434
9,611
11
Gibson County Commuting
Gibson County as a Home Jobs Count, 2011 Share Cumulative Share
Gibson County, IN 6,434 40.1% 40.1%Vanderburgh County, IN 3,681 22.9% 63.0%Knox County, IN 511 3.2% 66.2%Marion County, IN 504 3.1% 69.4%Warrick County, IN 443 2.8% 72.1%Dubois County, IN 351 2.2% 74.3%Posey County, IN 302 1.9% 76.2%Pike County, IN 220 1.4% 77.6%Tippecanoe County, IN 179 1.1% 78.7%Lake County, IN 161 1.0% 79.7%All Other Locations 3,259 20.3% 100.0%
• Gibson’s commute shed touches major metropolitan area of Indianapolis, Tippecanoe and Lake Counties (Chicago metro area)
• Major economic ties with Vanderburgh County (Evansville metro area)
Source: OTM, LEHD, U.S. Census Bureau; PCRD
Gibson County as Home
12
Gibson County WorkplaceGibson as a Workplace Jobs Count, 2011 Share Cumulative Share
Gibson County, IN 6,434 38.9% 38.9%
Vanderburgh County, IN 2,665 16.1% 54.9%
Warrick County, IN 1,157 7.0% 61.9%
Wabash County, IL 768 4.6% 66.6%
Knox County, IN 583 3.5% 70.1%
Pike County, IN 557 3.4% 73.4%
Posey County, IN 467 2.8% 76.3%
Dubois County, IN 348 2.1% 78.4%
Daviess County, IN 290 1.8% 80.1%
Henderson County, KY 248 1.5% 81.6%
All Other Locations 3,044 18.4% 100.0%
• Gibson’s labor shed extends to one adjacent county in IL and KY• A labor shed is a region from where a job center (Gibson County) draws its labor force.
Ten counties provide around 82% of the labor force.
Source: OTM, LEHD, U.S. Census Bureau; PCRD
Gibson County Region, IN
Based on commuting patterns, the region includes the following counties:• Wabash county in Illinois• Dubois, Gibson, Knox, Pike, Posey,
Vanderburgh, and Warrick counties in Indiana• Henderson county in Kentucky
Source: RDM, PCRD & ESRI
Economic & Demographic Attributes Value Remarks Source
Population (2013) 452,555 People living in the region Census
Jobs (2013) 266,343 Full and part-time jobs EMSI (QCEW, BLS; BEA)
Average Earnings (2013) $44,060Include wages, salaries, supplements and proprietor income
EMSI (BLS; BEA)
Exports (2012) $39,432,507,683$ earned from selling goods and services to foreign and external domestic regions
EMSI model (BEA)
Imports (2012) $33,308,068,999$ spent on procuring goods and services from foreign and external domestic region
EMSI model (BEA)
Data Source: EMSI 2013.2 & Census
Economic Attributes of Gibson County Region
o Trade balance (exports minus imports) is positive
Gibson County Region
Note: Label includes cluster name, LQ 2013 and Employment 2013
Data Source: EMSI 2013.2, industry cluster definitions by PCRD
Gibson County Region
Note: Label includes cluster name, LQ 2013 and Employment 2013
Data Source: EMSI 2013.2, industry cluster definitions by PCRD
P e r c e n t G r o w t h i n S p e c i a l i z a t i o n
L e
v e
l o
f
S p
e c
i a l
i z a
t i o
nTransforming
StarsMature
Emerging
Gibson County Region, Industry Cluster Analysis, 2008-13
• Defense & Security• Fabricated Metal Product
Manufacturing • Mining
• Manufacturing Super-Clustero Electrical Equipment,
Appliance & Component Manufacturing
o Primary Metal Manufacturing • Transportation & Logistics
• Advanced Materials• Agribusiness, Food Proc. & tech• Apparel & Textiles• Biomedical/Biotech (Life Sciences)• Chemicals & Chemical Based Prod• Energy (Fossil & Renewable)• Forest & Wood Products• Glass & Ceramics• Transportation Equip Mfg
• Arts, Entertainment, Recreation & Visitor Industries
• Business & Financial Services• Computer & Electronic Product
Manufacturing• Education & Knowledge Creation• IT & Telecommunications• Machinery Manufacturing• Printing & Publishing
Data Source: EMSI 2013.2, industry cluster definitions by PCRD
Star clustersPrim
ary M
etal Mfg
Chemicals
& Chemical...
Transp
ortation Equip....
Mining
Advance
d Materia
ls
Mfg Su
percluste
r
Energy (
Fossi
l & Rene...
Elec. Equip, A
pp. & Co...
Mach
inery M
fg
IT & Teleco
mm.
Fab. M
etal Pro
d. Mfg
Glass & Cera
mics
Biomedical/B
iotechn...
Fore
st & W
ood Prod.
Transp
ortation &
Logis.
..
Defense &
Secu
rity
Apparel &
Textiles
Agri. &
Food Pro
cess.
Business
& Financia
l S...
Comp. & Electr
n. Pro
d...
Printing &
Publishing
Edu. & Knowledge
Arts &
Ent. $-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000 Gibson County Region, Average Earnings, 2013
o IN average earnings; $44,298o Gibson county region average earnings, $44,060
Gibson County Region, Industry Clusters, 2013
Data Source: EMSI 2013.2, industry cluster definitions by PCRDRed numbers in parenthesis are negatives
Cluster Name 2013 Jobs 2013 LQ Percent Change LQ, 2008-2013 2013 EPW
Competitive Effect(Shift-share),
2008-2013
Biomedical/Biotechnical (Life Sciences) 25,231 1.24 1% $51,387 (350)Energy (Fossil & Renewable) 16,896 1.50 11% $72,040 1,470Manufacturing Supercluster 16,002 1.82 (2%) $73,035 (548)Business & Financial Services 15,584 0.47 (4%) $44,514 (1,165)Advanced Materials 15,014 2.00 1% $74,845 (230)Chemicals & Chemical Based Products 11,613 3.81 13% $79,225 1,154Forest & Wood Products 9,589 4.31 14% $49,956 1,019Transportation & Logistics 9,178 1.15 (1%) $49,155 (245)Transportation Equipment Manufacturing 8,045 3.61 17% $77,258 1,030Agribusiness, Food Processing & Technology 6,372 1.63 4% $44,840 128Arts, Entertainment, Recreation & Visitor Industries 6,166 0.59 (8%) $21,003 (724)Information Technology & Telecommunications 4,700 0.50 (2%) $63,400 (189)Defense & Security 3,947 0.49 17% $46,866 496Education & Knowledge Creation 3,478 0.57 (14%) $27,862 (606)Primary Metal Manufacturing 3,135 5.39 (15%) $85,490 (624)Printing & Publishing 2,592 0.57 (15%) $42,873 (487)Apparel & Textiles 2,003 1.03 18% $46,570 282Fabricated Metal Product Manufacturing 1,789 0.85 10% $54,638 130Glass & Ceramics 1,266 2.95 28% $54,603 253Machinery Manufacturing 1,226 0.73 0% $65,569 (31)Electrical Equipment, Appliance & Component Mfg 934 1.67 (51%) $67,429 (1,033)Computer & Electronic Product Manufacturing 873 0.54 (2%) $43,592 (41)Mining 706 0.91 8% $75,399 37
Note : ** presents “Star clusters in 2012”Data Source: EMSI 2013.2, industry cluster definitions by PCRD
Regional Requirements, Expenditures & Leakages, 2012
Electrical EquipmentGlass & Ceramics **
Apparel & Textiles **Education & Knowledge Creation
MiningPrinting & Publishing
Computer & Electronic ProductMachinery Manufacturing
Arts, Entertainment & Visitor IndustriesFabricated Metal
Forestry & Wood Products **Defense & Security
Primary MetalAgribusiness & Food Processing **
Transportation and LogisticsBiomed/Biotechnical **
IT & TelecommunicationsChemical and Chemical-based Industry Clsuters **
Transportation Equipment **Business & Finance
Energy (Fossil & Renewable) **Advanced Materials **
Manufacturing Supercluster
Satisfied in region
Strengthening Clusters throughImport Substitution
Seek to Identify:
• Industries that support the cluster
• Goods and services purchased from outside the region
• Capacity for supplying these inputs regionally
• Resources needed to help promote the creation, retention/expansion or attraction (recruitment) of businesses that can supply these inputs
Takeaways
Consider focusing on first & second stage enterprises in your county as part of your economic development efforts.
Assess the opportunities that exist at the regional level; find and build on the region’s competitive strengths
Explore ways to reduce the economic leakages associated with your “star” and “emerging” clusters
Purdue University Cooperative Extension Service is an equal access/equal opportunity institution.
Cultivating Entrepreneurship in Gibson County
Michael Wilcox and Bo BeaulieuExtension and PCRD
September 4, 2014Presented in Princeton, IN
Data Source: NETS 2011, Edward Lowe, IEGC, PCRD
Establishments in Gibson CountyTotal 2,303Stage 0 876Stage 1 1,184 Stage 2 219 Stage 3 23 Stage 4 1
EmploymentTotal 15,568 Stage 0 876Stage 1 3,734 Stage 2 5,818 Stage 3 4,565 Stage 4 575
Sales ($) in 2011 Stage 0 54,565,782 Stage 1 299,961,689 Stage 2 461,615,609 Stage 3 655,906,502 Stage 4 57,209,600
Definition of company stages
• Stage 0 (1 employee)
• Stage 1 (2-9 employees)
• Stage 2 (10-99 employees)
• Stage 3 (100 to 499 employees)
• Stage 4 (500+ employees)
• This table is based on the National Establishment Time Series (NETS) database
• The definitions for stages are based on research by the Edward Lowe Foundation
• A firm can have more than one establishment within the same county
Local Industry Establishments: The Five Stages
Data Source: NETS 2011, Edward Lowe, IEGC, PCRD
Top Five Sales Establishments by Company Stage, 2011Gibson County, Indiana
Sales ($) Industry Establishments NAICS EmployeesStage 0 (1 employee)
500,000 Hardware stores 444130 1500,000 General farms, primarily crop 111998 1300,000 Television repair shop 811211 1300,000 Single-family housing construction 236115 1296,400 Pipelines, nec 486990 1
Stage 1 (2-9 employees)8,276,000 Fertilizer and fertilizer materials 424910 86,000,000 Grain elevators 424510 62,700,000 Pipelines, nec 486990 92,285,700 Gases, liquefied petroleum (propane) 424720 82,227,500 Gasoline service stations 447110 3
Stage 2 (10-99 employees)23,375,300 Electric services 2211 6020,000,000 Supermarkets, independent 453110 8016,875,000 Bowl covers, plastics 326199 5013,235,300 Automobiles, new and used 441110 309,739,700 Electric services 2211 25
Stage 3 (100 to 499 employees)136,356,100 Electric services 2211 350126,000,000 Distribution, electric power 221122 36051,873,691 General medical and surgical hospitals 622110 26050,000,000 Motors, electric 335312 25043,740,000 Department stores, discount 452112 225
Stage 4 (500 + employees)57209600 Seats, automobile 336360 575
Data Source: EMSI, 2014 - Self-Employed - EMSI 2013.3 Class of Worker
Self-employment in Gibson County, 2007-2012
NAICS Code Description 2007
Jobs 2012 Jobs % Change
2013 Avg. Earnings Per Job
11 Agriculture, Forestry, Fishing and Hunting 191 200 5% $23,080
23 Construction 145 118 (19%) $18,616
31 Manufacturing <10 <10 -- --
42 Wholesale Trade 11 18 64% $16,042
44 Retail Trade 62 61 (2%) $21,201
48 Transportation and Warehousing 39 40 3% $29,430
51 Information <10 <10 -- --
52 Finance and Insurance 18 13 (28%) $35,181
53 Real Estate and Rental and Leasing 29 21 (28%) $18,742
54 Professional, Scientific, and Technical Services 50 43 (14%) $34,707
56 Administrative and Support and Waste Management and Remediation Services 93 83 (11%) $7,362
61 Educational Services (Private) <10 13 -- $13,700
62 Health Care and Social Assistance 52 47 (10%) $54,534
71 Arts, Entertainment, and Recreation 14 <10 -- --
72 Accommodation and Food Services 17 <10 -- --
81 Other Services (except Public Administration) 183 86 (53%) $19,867
Total 927 768 (17%) $22,810
To assist targeted communities in Indiana as they transform their local economies through the development of key components required for entrepreneurship and small
business development.
Purpose
Three ways in which entrepreneurship plays a critical role in economic development…
Entrepreneurship – the link between assets and finding new sources of competitive advantage and economic opportunity
Entrepreneurs – recognize opportunity and bring together resources to turn opportunity into a viable business venture
Entrepreneurial communities and leaders – understand their assets and mobilize to employ these assets through entrepreneurship development
Relationships and Roles
Entrepreneurs and small business owners play an important role in local economic development, specifically…
As Employers: creating new jobs and playing a significant role in hiring part-time workers and new workforce entrants
As Tax Revenue Generators: broadening tax base, thus generating greater property and income tax revenues
As Economic Supporters: buying and supplying local products and services. Income generated typically not exported out of local community
Entrepreneurship as a Development Strategy
and…
As Property Owners and Renters: leasing space from local property owners and filling vacant storefronts downtown
As Providers of Economic Stability: small homegrown firms are, by definition, owned and operated by people who have a personal stake in the community and are more likely to remain
As Providers of Economic Diversity: entrepreneurs diversify the mix of business types and sectors which contributes to economic resiliency
Entrepreneurship as a Development Strategy (cntd)
Interconnectedness between rural and urban• Regionalism = rural and urban linkages
• Systems = rural and urban resources
• Assets = unique rural and urban strengths and markets
• Ensure that urban and rural neighbors serve their region as equal partners
The New Paradigm Needs to Embody Four Policy Principles
• More entrepreneurs• Increase the numbers
• Stronger entrepreneurs• Increase the survival rate
• More high growth entrepreneurs• Increase the number that create jobs and wealth
Policy Goals
These policy goals translate into program goals…• More entrepreneurs in the pipeline• More entrepreneurs staying in their community• Better informed entrepreneurs• Better skilled entrepreneurs• More job creating entrepreneurs• Greater business productivity
Program Goals
Entrepreneurship and Economic Development Research suggests that:
• Growing firms from “within” is a more cost effective means of creating profit centers, tax base and employment per job created.
• Small, home grown firms play a significant role in job creation in both urban and rural areas.
• Communities should take a balanced approach to economic development and complement recruitment, business retention and expansion activities.
• Your community is what brings it all together!
“An effective entrepreneurship development system integrates a wide range of programs and tailors products and services to meet the diverse needs of entrepreneurs. It should be comprehensive, flexible, culturally sensitive, and integrated, and should require providers to collaborate rather than operate independently or in isolation”
- Dabson, 2005
An Entrepreneurial System
Supportive Environment Entrepreneur Networks
• Supportive environment: creating community and civic environments that celebrate and support entrepreneurs.
• Be Entrepreneur-focused• Create ‘No wrong door’ • Celebrate entrepreneurs
Component #1: Supportive Environment
Supportive Environment
Entrepreneur Networks: facilitating opportunities for informal gatherings of entrepreneurs to share experiences and information.
• Facilitate, but don’t lead• Networks should be “by and for” entrepreneurs
Component #2: Entrepreneur Networks
Entrepreneur Networks
Training & Technical Assistance: the creation of systems of advice, expertise and training appropriate to the needs of entrepreneurs – can be public, private, educational or nonprofit agencies.
• ID your community’s “coaches”• Help entrepreneurs navigate the system
Component #3: Training & Technical Assistance
Training and Technical
Assistance
Access to Capital: in the form most useful for the stage of business development• Connect entrepreneurs to local lenders
• Increase the banking IQ of local entrepreneurs• Increase the business IQ of local bankers
• Leverage regional and state funding• Incentives and assets
Component #4: Access to Capital
Access to Capital
Youth Entrepreneurship: programs to excite young people in schools, community colleges and universities about the possibilities of creating their own businesses
• Build a pipeline of future entrepreneurs• Engage young people
Component #5: Youth Entrepreneurship
Youth Entrepreneurship
Where do We go from here?Creating an Entrepreneurial System in Gibson County
According to Markley et al. (2005), communities that are “ready” have:
• Particular capacities in human, financial, and physical infrastructure
• A supportive business/entrepreneurial climate• A strong self-image with positive citizen and
community attitudes• Open and creative community leadership, or
leadership environment, that encourages and nurtures emerging leaders
Entrepreneurial Community Readiness
Community Readiness Questionnaire
The Results
Awareness
What is?Who are?How many?Networks?Impacts of?
Organization
Which?How?CollaborationBuy-in
Planning
What assets?Opportunity?Vision?Goals?Scope?
Projects
FocusInvestmentsIncentivesImplementationImpacts
Evaluation
MeasurementCelebrationSustainabilityCommitment
The Process
Let’s create a list of institutions and associations that can assist us in the creation of a regional entrepreneurial system…
Who else?
Who?
• Purdue Extension• Purdue Center for Regional
Development• Local Initiatives Support Corporation• Chambers• LEDOs• Community foundation• Utility companies• Local governments• Revolving loan funds• United Way• Producer groups• Farm Bureau / Advocacy groups• Elevate ventures• 4H / FFA• Economic Growth Council
• Variety of local “Boards”• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________• _____________________
Who?
Purdue University Cooperative Extension Service is an equal access/equal opportunity institution.
Thank you!
Michael Wilcox and Bo Beaulieuwilcox16@purdue.edu and ljb@purdue.edu
September 4, 2014Presented in Princeton, IN
To Learn More about the Purdue Center for Regional Development, check our new website:
https://pcrd.purdue.edu/
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