Sunday, January 9, 2011

Rural Economic Development Tips and Strategies

The rural parts of America are a great place to live, but many communities are challenged to attract job-creating industries that will keep the younger generation from moving away. With the decline of so many of our resource-dependent jobs, such as logging, mining, farming, and fishing, there is a real need for rural community economic development work to be done.
I learned a few things while working with a number of timber-dependent rural communities during the Spotted Owl Wars of the early 1990s in Oregon and they may still be of use to those who are perhaps volunteers "in the trenches", trying to keep their rural communities alive and healthy. I don't like to be gloomy, but the challenges facing rural communities in a global economic slowdown would appear to be a lot worse than those my community faced in the mid-'90s.

I hope that these tips will give you some good ideas to guide you, as well as keep you from falling for some of the tricks that big-city industries (and your local sharpies) may try to pull on your community.
1) Somebody's got to carry the ball. Someone must be able and willing to be the "point person" for your economic development efforts. It can be a full-time job, so hopefully you have some wealthy retiree with some sales and business skills, plus a knack for speaking intelligently to the press. A sharp, activist City Administrator or local Chamber of Commerce Exec can also be good managers of your development efforts.
Bottom Line: Someone capable has to be available when opportunity comes knocking after business hours. You never know when some reporter will call or email, "on deadline" with a need for some material for a story that could get your community noticed by someone who could do you some good. Find someone who will be there and capable of telling your town's story in a favorable light. That's your "point person."
(The area media can be one of your greatest allies. Your community must have a clear, respectable presence on the Internet. But, however you can, get the word out about your community and its search for whatever it is you are looking for--small businesses, manufacturers, tourists, retirees, you name it.)
2) Get your community involved in determining your best, most realistic opportunities for success. Get outside, professional advice from your state or county or even the federal Rural Development Administration -- They can direct you to grant opportunities that are appropriate for your community's goals.
3) It's not about what your community wants to work; it's about what is most likely to work. Some niche group out in the market wants to enjoy the assets your town offers. Your job is to figure out who that is and how to get their attention.
NOTE: If possible, get feedback from both businesses inside the community, but also those who are current visitors and admirers. Ask what could you do to make your ton more attractive to bring more of these customers to town. Then find a grant or other way to make it happen. This type of feedback was invaluable for our town. It was outsiders who told us what we had that was unique and promotable.
4) Giving out incentives to lure small or large manufacturers to town is often a waste of your time and money. Don't "give away the farm." There are small manufacturers who will move to town for as long as the incentives last and then leave for greener pastures. Don't pay more than it is worth to have that business in town for whatever taxes you forego. Don't be a sucker out of desperation. You would be surprised how quick a big expensive manufacturing plant can be moved to another state or offshore.
5) High tech companies often want to be in or very near university towns, but not always. If the owners and employees like the recreational assets of your community, the peace and quiet, and the safety for raising their families, those who do a lot of their business online may consider your town favorably.
6) Consider whether your town has tourism potential. This can be a way of bringing new cash to town to support local businesses such as grocery stores, restaurants, and motels. You'd be surprised at some of the funny features that can be a way to capture a niche market. For instance, one community way out in Eastern Oregon made itself a destination for launching hang-gliders off the top of a high and windy local mountain. It worked for them and still does.
7) Does your community have what it takes to attract retirees? Good medical facilities are important.
8) Construct a balanced and diversified strategy. All segments of the community must see benefits or they will not go along with your development strategy. Don't put all your eggs in one basket. Put a number of lines in the water and see which fish are interested in what your community has to offer. You may be surprised.
Hard work and a realistic vision of what your community has to offer -- and what the target market is willing to pay for -- will bring success. Get in tune with trends of the future that may favor your unique assets.
Good luck!