ECONOMIC GARDENINGECONOMIC GARDENING

An example of one style of Economic An example of one style of Economic Gardening from ‘Down Under’Gardening from ‘Down Under’

R D AR D AIllawarraIllawarra

Where do we come from?Where do we come from?

The Illawarra region:The Illawarra region:

50 miles South of Sydney50 miles South of Sydney

Beautiful coastal region – but with heavy Beautiful coastal region – but with heavy industrial and coal mining heritageindustrial and coal mining heritage

3 main population centres:3 main population centres:

Wollongong City - 195,000 peopleWollongong City - 195,000 people

Shellharbour City - 62,000 peopleShellharbour City - 62,000 people

Kiama Municipality - 20,000 peopleKiama Municipality - 20,000 people

Where is Shellharbour?Where is Shellharbour?

Steel and Coal

Wollongong Boat Harbour

Gerringong Beach and township - Kiama

Shellharbour – old village and Boatharbour

Shellharbour Village

The

SEA CLIFFSEA CLIFFBridge

Economic BackgroundEconomic Background Regional economy dominated by Wollongong City and Port Kembla. Traditional industries: Steel-making and Coal mining Company town mentality. Savage restructuring of steel and coal industries during 1980’s and 1990’s. Since 1980s, recognised need to re-invent the regional economy. Even in boom times Illawarra suffers from high unemployment.

Shellharbour CityShellharbour City A fast-growing residential city located close to a larger, more industrialised city (Wollongong) Commuting distance to Sydney (1 ½ to 2 hours) Narrow industry base - retail, wholesale, hospitality, service industries

Low workforce self-containment rate High unemployment, including youth unemployment Parts of community in genuine poverty Limited available industrial land / Unsuitability for large-scale industrial activity Emerging micro/small/ home-based business sector.

History of Shellharbour Economic Gardening projectHistory of Shellharbour Economic Gardening project In late 2004 IACC began a literature review relating to economic development ‘best practice’ around the world. Search for strategies that would empower the local community to help grow the Illawarra economy.

Emphasis on growing local jobs for local people. Found some startling evidence about inineffectiveness of some traditional economic development strategies, and about the relative importance of small business growth (Birch, Burgess, Maples etc).

IACC formed the view that a more balanced approach was needed – not just relying on efforts to attract big businesses to relocate.

Research in AustraliaResearch in Australia Unknown to us, others were doing research on entrepreneurship strategies and preparing to implement Economic Gardening in Australia. As we were in the process of designing our project Dr Roy Powell was already beginning to implement his strategy. Professor Steve Garlick had undertaken an 18 year research project into the key drivers of economic growth in 94 Australian regions. His findings are important to the development of new economic development strategy: - Most important drivers of economic growth are Creative Human Capital and Enterprising Human Capital. - One of the least effective drivers is Institutional Intervention.

Our aim -Our aim - To identify a strategy that could be used by local To identify a strategy that could be used by local organisations to achieve organisations to achieve tangible tangible results:results: IACC was a small community-based organisation, not equipped to play a major role in economic ‘hunting’. How could we have a meaningful, positive influence on the Illawarra region’s economic development? We wanted to influence the ‘quality of growth’ – economically, socially and environmentally sustainable.

We had a basic concept that it would be better to promote growth from ‘within’ - Growth of a type and scale that could be influenced by local practitioners.

Attraction to theAttraction to the Economic Gardening Economic Gardening concept Identified Economic GardeningEconomic Gardening as a strategy with a potential ‘good fit’ for the local environment. Contacted Chris Gibbons for more information. Began discussions with potential partners to test the concept, and to initiate a pilot project. Shellharbour City Council expressed the strongest interest and became the lead partner. Commenced design work on the pilot project and began searching for funding.

Beginning the projectBeginning the projectThe challenge of funding:The challenge of funding: In Australia, local government does not receive sales tax revenue. Despite this, Shellharbour City Council was convinced to support the development of an Economic Gardening project. Jane Robinson also prepared a successful grant application to the Federal Government. Between these contributions and other partnership funds the Economic Gardening project was able to begin in November 2006.

In 2007 the NSW State government also decided to provide some financial assistance to the project.

Beginning the project Beginning the project (continued)Project design:Project design: One of the strengths of Economic Gardening in the USA is its clever use of market information to help give businesses a competitive edge. Compared to Australia, economic development practitioners in the USA have access to market information resources that are:

- More readily available- Much cheaper- More detailed

We had to design a program that was initially much less focused on the provision of market information. Australian business owners are not generally inclined to seek help to grow their businesses. We designed a program that would give us a ‘critical mass’ of businesses to begin work with.

Economic Gardening program – ShellharbourEconomic Gardening program – Shellharbour1.1. Building strong networksBuilding strong networks An ideal platform to launch Economic Gardening was

created by Shellharbour Council in 2004.

The Shellharbour Small Business Network, meets every month, with between 70 and 120 business owners attending each meeting.

IACC also operates the Wollongong Small Business Club.

These large networks have provided excellent opportunities to plant the seeds of the Economic Gardening idea, and to encourage business owners to actively participate.

EG ShellharbourEG Shellharbour (continued)

2. The BOOT CAMPBOOT CAMP - an intensive, full-day business workshop.

Activities are closely observed to help the team identify business operators who will benefit from the program.

EG ShellharbourEG Shellharbour (continued)3. Business HEALTH CHECKHEALTH CHECK offered to

identified businesses.

Advice provided by the financial consultant to the EG team from about the financial strength of businesses.

EG ShellharbourEG Shellharbour (continued)

4. 4. ENTREPRENEURSHIP WORKSHOPSENTREPRENEURSHIP WORKSHOPS offered to identified businesses:

Business Planning for Growth Financial Management for a Growing Business Analysing Your Customer-Base and Target Market Understanding the value of your services/products Advanced Marketing Techniques Succeeding in E-Business Leadership & People Skills for Business.

Workshops are delivered by successful business people with expertise in these specialised areas.

EG ShellharbourEG Shellharbour (continued)5. Follow-up individual Business CoachingBusiness Coaching after each workshop: Business owners chosen to participate in the Entrepreneurship Workshops are entitled to a 1 ½ hour business coaching session after workshop. Coaching is also done by successful business people .

Coaching is usually done at the person’s place of business.

EG ShellharbourEG Shellharbour (continued)6. Specialised market researchSpecialised market research Business owners participating in the full EG program are offered subsidised rental of direct marketing lists, and assistance with preparing campaigns. Council team members provide assistance with the interpretation of market data, which includes the use of a GIS based system (Informed DecisionsInformed Decisions). Lack of readily available data in Australia to use with GIS (mostly 2006 Census)

The TeamThe Team

Jane & John – Project management and design

Bob Ashford – Coordinating consultant

Juliet Scrine - MarketingDick Bradley – Business planning, benchmarking and finance Andrew Thornberry – ee--business and IT

Is Economic Gardening working in Shellharbour?Is Economic Gardening working in Shellharbour? Our goalsOur goals:: A community that recognises and rewards entrepreneurshipA community that recognises and rewards entrepreneurship Resilient, skilled, high-growth businesses Resilient, skilled, high-growth businesses A more self-sufficient local economyA more self-sufficient local economy Local jobs for local people!Local jobs for local people!

Results so far:Results so far:

Gradual cultural change – interest in entrepreneurshipGradual cultural change – interest in entrepreneurship

Diversity of businessesDiversity of businesses

Business improvementBusiness improvement

JobsJobs

Diverse group of Participating BusinessesDiverse group of Participating Businesses

Some examples:Some examples:

Capital Aircraft ServicesCapital Aircraft Services

Avionics and gas turbine specialistsAvionics and gas turbine specialists

Healthy Earth Healthy Earth FertilisersFertilisers

Fertiliser manufacturers for sustainable Fertiliser manufacturers for sustainable agriculture and horticultureagriculture and horticulture

Cooks Cooks CConfectioneryonfectionery

Confectionery Confectionery manufacturers and manufacturers and

wholesalerswholesalers

COSMO LIGHTINGCOSMO LIGHTING

Lighting engineers, manufacturers and retailersLighting engineers, manufacturers and retailers

Landscape and Commercial PhotographerLandscape and Commercial Photographerwww.deekramer.com

Corporate promotional management- Cash-back programs- Sweepstakes and competition administration

Boat manufacturers and rental franchisorsBoat manufacturers and rental franchisorswww.boabboathire.com.au

Specialists in converting coaches Specialists in converting coaches into motor homes (RVs)into motor homes (RVs)

Specialist retailers of car audio, video, security, navigation Specialist retailers of car audio, video, security, navigation and home theatre – retail outlet and and home theatre – retail outlet and eebusinessbusiness

AA to to Z Z EmbroideryEmbroidery

Commercial embroidery – corporate logosCommercial embroidery – corporate logos

Aircraft Aircraft MaintenancMaintenanc

e e CentreCentre

Commercial Commercial Light Aircraft Light Aircraft MaintenanceMaintenance

Economic Gardening in ShellharbourEconomic Gardening in Shellharbour

………….an evolving process.an evolving process

We don’t assume that we’ve got it right yet.We don’t assume that we’ve got it right yet.

We still have problems to solve.We still have problems to solve.

We keep learning and trying new things.We keep learning and trying new things.

Creating a virtual entrepreneur communityCreating a virtual entrepreneur community

Developing our own ‘home grown’ resourcesDeveloping our own ‘home grown’ resources

In April 2008 we began production of our own series of business training videos.

In response to an identified need for ‘best practice’ learning resources for business owners and their staff. There isn’t much Aussie training material available (most business training videos comes from Britain or USA).

Thank youThank you

We are grateful to many people for persevering with us as we tried to implement a strategy that was very

different to traditional economic development practices in Australia.

(In particular Shellharbour City Council who dared to go where other Councils couldn’t be bothered to tread)

Our special thanks to Chris Gibbons who inspired us to try Economic Gardening in ‘our patch’!

R D AR D AIllawarraIllawarra