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GROWING SUCCESSFUL COMMUNITIES IN MONTANA Montana Community Foundation October 9, 2011 Via Webinar Link

GROWING SUCCESSFUL COMMUNITIES IN MONTANA Montana Community Foundation October 9, 2011 Via Webinar Link. A SMALL TOWN SUCCESS STORY Atwood & Rawlins County KS. Atwood & Rawlins County Kansas – Success Story. Very Rural – Very Isolated Northwest Kansas – Wheat Country

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GROWING SUCCESSFUL COMMUNITIES IN MONTANA Montana Community Foundation October 9, 2011 Via Webinar Link

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  1. GROWING SUCCESSFUL COMMUNITIES IN MONTANA Montana Community Foundation October 9, 2011 Via Webinar Link

  2. A SMALL TOWN SUCCESS STORY Atwood & Rawlins County KS

  3. Atwood & Rawlins CountyKansas – Success Story Very Rural – Very Isolated Northwest Kansas – Wheat Country Too Small to Succeed Chronic & Severe Depopulation

  4. Historical Population Trend Line for Rawlins County, KS

  5. Nonfarm Proprietors’ Income & Employment (1960-2008)Rawlins County, Kansas

  6. Net MigrationRawlins County, Kansas Source: Internal Revenue Service, Statistics of Income, Migration Data

  7. USD 105 School EnrollmentRawlins County, Kansas Source: Kansas Department of Education & Kansas USD 105, 2010

  8. Contemporary Population Trend Line for Rawlins County, KS

  9. Atwood KS Wrap Up Keys to Success Community Reinvestment & Building Smart People Attraction Strategy Entrepreneur-Focused Economic Development Community Philanthropy

  10. Today’s Topics Economic Development Today Observations on Montana Entrepreneurship – Wealth Creation Wealth Giveback & Community Building Time for Some Questions

  11. ECONOMIC DEVELOPMENT TODAY A Quick Look at the Bigger Picture

  12. Global Competition Post-WWII Dominance American Declining? Or World Catching Up? New Competitors New Opportunities

  13. Great Recession Most significant economic event in our life times! A new economic and social world will emerge from this recession.

  14. Great Reset 1870s The Long Depression 1930s The Great Recession 2007 to ??? Great Recession

  15. 1870s – The Long Depression 1st Industrial Revolution Assembly Line Telecommunications Modern Electricity Good Government Movement Labor Reform

  16. 1930s – The Great Depression 2nd Industrial Revolution Modern Banking Suburbia College Educations Internet Modern Aviation Civil Rights

  17. 2007 to ? – The Great Recession Real Estate & Banking Bubbles ?

  18. The Reset Process Crisis Unraveling Prosperity Opportunity Space New Ventures New Innovation

  19. Changing Industries Only 71 companies that were on the original Fortune 500 List in 1955 are still there today! John Pritzlaff immigrated from Prussa in 1841 and created a hardware business with over 400 employees. It is gone today and like buildings all across America it is being recycled.

  20. Outsourced Economy Foreign & Domestic Legacy Employment Outsourced Workers Teleworkers In the next couple of decades as many as 1 in 4 Americans will be outsourced workers.

  21. OBSERVATIONS ON MONTANA

  22. Montana Non-Labor IncomeAs a Percent of Total State Personal Income

  23. Montana Population Change2000-2009

  24. Trends in Montana IncomesPer Capita Income & Earnings Per Job

  25. Montana Unemployment Rates

  26. Personal Income, 2000s Real Estate -$416m Down 50%! Agriculture -$103m Forestry -$32m Every state is facing challenges due to the Great Recession -- Montana included. There is a compelling need for smart, affordable and effective development. Need for Development

  27. ENTREPRENEURS & WEALTH CREATION

  28. “ A person who creates and grows a venture.” Jay Kayne Miami University Entrepreneurs Defined

  29. American Legacy& the New Economy

  30. Entrepreneurs Build Economies David Birch & Cogenics 55% -- Existing Business 44% -- Startups 1% -- Relocations Growth Oriented Entrepreneurs

  31. Entrepreneurs - Home & Career Jim Jenkins Callaway, Nebraska Beth Stube Dickinson, North Dakota

  32. Source of EmploymentUnited States Year Stage 3 & 4 Self-Employed 1992 34.3% 2.4% 2001 33.9% 3.2% 2008 26.1% 7.0% Source: Edward Lowe Foundation, 2010 Share of Employment by Business Size Stage 1 = 2 to 9 Employees, Stage 2 = 10 to 99 Employees Stage 3 = 100 to 499 & Stage 4 = 500+ Employees

  33. Role of Entrepreneurs Power Change Agents Create Economic Development Civic & Social Leadership Community Giveback Three Kinds of Es: Business – Social - Civic

  34. Entrepreneurs – Wealth Creators Average Net Worth of Self-Employed: $1.84 Million Federal Reserve, 2007 Necessity Entrepreneurs Opportunity Entrepreneurs Breakout Entrepreneurs Of the world’s millionaires: 47% are entrepreneurs! The Credit Suisse Global Wealth Report, 2010

  35. Cutting Edge E Strategies Coastal Enterprise, ME Strom Center, ND Heartland, MN Dakota Rising, SD Northern Initiative, MI Economic Gardening, WY Redwood Cost, CA NIACC, IA REAP, NE Economic Gardening, CO Network Kansas, KS Kentucky Highlands, KY Rural Center, NC Entrepreneurial Communities, GA

  36. Many Forms, Common Practice Informal Customized Assistance Incubators SBA/SBDC Model Common Practice Micro Enterprise Project Led Capital Led Enterprise Facilitation Training Led

  37. San Diego, CaliforniaComplicated!

  38. Shenandoah, Iowa Simple!

  39. Systems Work Better!

  40. Basic System Elements Networking to External Resources As-Needed Assistance Supports Organization Funding Sustainability As-Needed Assistance Targeting Es 1. Growth 2. Attraction 3. Transition 4. Startups/Aspiring 5. Challenged 6. Youth Advise Organizing Area Resources EntrepreneurCoaching Investment

  41. WEALTH GIVEBACK & COMMUNITY BUILDING

  42. Housing Related Net-Worth Source: Board of Governors of the Federal Reserve System & Center for Rural Entrepreneurship, 2011

  43. Recent Trends in U.S. Household Current Net Worth Source: Board of Governors of the Federal Reserve System & Center for Rural Entrepreneurship, 2011

  44. Household Wealth & Capacity for Give Back Source: Survey of Consumer Finances, 2007 & Center for Rural Entrepreneurship, 2011

  45. Geography of TOW Research

  46. New TOW Scenarios Boston College: 1998-2052 High = $136 trillion Medium = $73 trillion Low = $41 trillion RUPRI: 2010-2060 High = $91 trillion Low = $75 trillion Constant = $63 trillion Zero = $43 trillion Our revised and most likely scenario of future TOW for the U.S. is estimated at $75 trillion between 2010 and 2060. Inflation adjusted 2010 dollars.

  47. TOW & Give BackA Framework of How TOW is Being Used Opportunity Awareness Amount of Wealth Kinds of Wealth Sources of Wealth Wealth in Poor Places There is Wealth Potential for Give Back Asset Based Development Threat – Call to Action Depopulation Outmigration Timing of Wealth Transfer Donor Targeting High Net Worth Households Types of Wealth Messaging Strategies

  48. Montana’s TOW Opportunity

  49. Montana Population Trends

  50. Net-Worth Breakouts Low CNW = 48% Under $50,000 CNW Middle CNW = 32% $50,000 to $249,000 CNW High CNW = 20% $250,000+ CNW Millionaires = 4.6% Source: ESRI, 2010 Data, 2011. Overall wealth in Montana is under-estimated from this data. Agricultural land holdings, mineral and energy holdings and temporary residents could increase giveback potential by 20-30%. Giveback Potential

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