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Regional Economic Development. Michael Morrison President Jamie T. Zanios Director. The Need for Change. Demography is Destiny: Unless We Do Something About It!. Iowa Counties. Population Changes. North Iowa Area Schools Enrollment Under 18 1975-2001.

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Regional economic development

Regional Economic Development

Michael MorrisonPresident

Jamie T. Zanios

Director


The need for change

The Need for Change


Demography is destiny unless we do something about it

Demography is Destiny:Unless We Do Something About It!


Iowa counties

Iowa Counties

Population Changes


North iowa area schools enrollment under 18 1975 2001

North Iowa Area Schools Enrollment Under 18 1975-2001


Regional economic development

Projected Population Changes, 2000 to 2015

Population Projections from Woods and Poole

Population Projections from Woods and Poole


Regional economic development

Projected Population Changes, 2000 to 2015

Population Projections from Woods and Poole


Iowa in national context

Iowa In National Context


The economy

The Economy


Regional economic development

Business Vitality Index - Entrepreneurism


Net gain loss of iowa residents

Net Gain/Loss ofIowa Residents


States ability to produce graduates vs ability to keep and attract graduates

States’ Ability to Produce Graduates vs. Ability to Keep and Attract Graduates

Low Production, Importer of Capital

High Production, Importer of Capital

400

State New Economy Index Scores (2002)

Top Tier

NV

300

Middle Tier

Low Tier

CO

GA

AZ

200

CA

OR

WA

MD

AK

TX

VA

NC

FL

MA

100

TN

IL

NJ

MN

HI

Migration Rate of 22- to 29-Year-Olds with a College Degree

DE

NY

SC

MO

CT

0

KY

OH

MI

KS

NM

ID

AR

NH

WI

UT

OK

-100

AL

RI

NE

PA

IN

LA

MS

WY

IA

ME

VT

-200

WV

SD

MT

-300

ND

-400

Low Production, Exporter of Capital

High Production, Exporter of Capital

7.5

15

22.5

30


Net migration of residents 22 29 with bachelor s degree or higher 1995 2000

200,000

191,070

150,000

100,000

73,509

49,421

44,216

43,837

50,000

40,060

35,307

32,564

30,363

29,603

28,998

27,216

25,875

24,470

14,557

13,666

10,946

9,752

New Hampshire

South Dakota

North Dakota

West Virginia

Rhode Island

Pennsylvania

3,295

2,337

New Mexico

1,190

Mississippi

Oklahoma

Wisconsin

Louisiana

960

Wyoming

Nebraska

Kentucky

Arkansas

645

Michigan

Alabama

Vermont

Montana

Missouri

Indiana

Kansas

Maine

Idaho

0

Iowa

Utah

Ohio

-303

-498

-661

-1,385

-1,503

-2,899

-2,996

Texas

-3,510

-3,579

Illinois

-3,854

Hawaii

Alaska

-4,447

-4,591

Florida

-4,966

Oregon

Nevada

Virginia

Arizona

-5,530

Georgia

Colorado

-6,670

-6,903

-6,934

-7,241

Maryland

Delaware

California

New York

-8,420

Minnesota

Tennessee

-9,687

-9,763

New Jersey

Washington

Connecticut

-9,246

-10,534

Massachusetts

North Carolina

South Carolina

-13,488

-16,902

-17,643

-34,642

-50,000

Net Migration of Residents 22-29with Bachelor’s Degree or Higher, 1995-2000

Source: U.S. Census Bureau, Public Use Microdata Samples, 2000


Aggregate personal income inequality grows between iowa counties 1969 2002

15.52% increase in inequality since 1969

Aggregate Personal Income Inequality Grows Between Iowa Counties, 1969-2002


Regional economic development

Enough! No more prizes forpredicting rain!

North Iowa


Bold new initiatives are required

Bold, New InitiativesAre Required


Nine new initiatives

Nine New Initiatives

  • Pappajohn Entrepreneurial Center

  • North Iowa Growth Partnership

  • Labor Shed Analysis

  • Cluster Analysis

  • North Iowa Accelerator

  • Business Incubator

  • North Iowa Venture Capital Fund

  • North Iowa Growth Marketing Partnership

  • Regional Economic Development


Why should we do this

Why Should We Do This?

  • Iowa’s future depends on it!

    • Bold, new initiatives are required

  • We are appropriately “positioned” to do it

  • It is strategic to do it!

  • It’s aligned with State and Federal economic development initiatives & plans

  • ROI


I pappajohn entrepreneurial center

I. PappajohnEntrepreneurial Center

Produce and cultivate a culture conducive to entrepreneurship

Provide entrepreneurs the tools for success

Provide promising entrepreneurs access to capital

Implemented


Niacc john pappajohn center step by step

NIACC John Pappajohn Center…Step by Step

  • Step 1: Classes, workshops and technical support

  • Step 2: Integration with EDC’s (i.e. company recruitment) and others

  • Step 3: Access to Capital

  • Step 4: Deal Flow

  • Next Steps 5: A Wider Reach


Entrepreneurship education a wide array of programs

Degree Programs

Associate of Science Degree and Certificate Degree

Opportunity Recognition

Foundation Courses

Hands on Learning

Interdisciplinary

Creating a Way of Thinking

Job Creators vs. Job Takers

Necessity and Opportunity Based Education

FastTrac New Venture

FastTrac Planning

Angel Investing Seminar

ON-LINE Intro to Entrepreneurship

E-Commerce Workshops

Start your Own Business Seminar

Entrepreneurship Education:A wide array of programs


Entrepreneurship awareness and education

Entrepreneurship Awareness and Education

To offer expanded programs which may include populations that might otherwise not be exposed to the concept and option of entrepreneurship and self employment.

  • Communication Courses

  • Faculty Training

  • Collegiate Entrepreneur Organization

  • Credit Class - The Entrepreneurial Process – 2 s.h. evening course


Niacc and isu collaboration

NIACC and ISU Collaboration

  • Allow students to network and provide entrepreneurial support to start-up and mezzanine level businesses.

  • Develop best practices in cross curriculum entrepreneurship education

  • Increase the ties between Regents Institutions and Community Colleges


Small business development center areas of assistance

Small Business Development Center: AREAS OF ASSISTANCE

  • Market Research

  • Market Planning

  • Strategic Planning

  • Government Procurement

  • Accounting, Recordkeeping

  • Information Technology

  • International Trade

  • Inventions

  • Feasibility Analysis

  • Business Planning

  • Sources of Capital

  • Financial Planning

  • Cashflow Analysis

  • Loan Proposals

  • Loan Applications

  • Human Resource Planning


Sbdc supporting the entrepreneur a wide array of workshops

Smart Start Program

On-Line E-Z Start

Growing your Business

Effective Marketing

SCORE Workshop

Financial Management/Cash Flow Workshop

IRS Tax Workshop –Codes Update

Iowa Sales Use and Local Sales Option Tax

Deductions and Expenses

Iowa Payroll and Employment Taxes

Taxes for Construction Contractors

Taxes for Landscape Contractors

SBDC Franchise Workshop

Women’s Technology Workshop

OSHA’s Knocking, Are You Ready?

SBDC :Supporting the EntrepreneurA wide array of workshops


Iowa entrepreneurial consortium new business starts

Iowa Entrepreneurial Consortium: New Business Starts

Statewide

Over 4000 participants

Over 400 new business starts

Locally

130 + new business starts


Niacc and lean manufacturing

NIACC and Lean Manufacturing

  • NIACC leads the State of Iowa in “Lean Manufacturing” training and results and Iowa leads the nation. A strong program delivered by the college in conjunction with Iowa Workforce Development and part of 260 E and F training funds.

  • Over $148,000,000 in realized savings reported by the industries served!


Additional activities

Additional Activities

  • Youth Entrepreneurial Academy

    • Summer 4 day, live and learn on campus, with business visits. Final is business plan presentation to Prominent Business Persons.

    • 20 students attend free of charge for the academy which includes training, room, board, evening activities, field trips and more.

    • Last year resulted in two student run businesses being developed and launched.

  • Entrepreneurship Exchange

    • Gathering of entrepreneurs at the JPEC for short topical presentations and networking with each other.


Next steps a wider reach

Next Steps : A Wider Reach

  • Intra Entrepreneurship

    • Introducing entrepreneurial thinking into Iowa’s many mature industries

  • Entrepreneurial Symposium for Elected Officials

  • Entrepreneurship Introduced Early in a Child's Education

  • Business and Student Incubation

  • The Entrepreneurial Community Colleges of Iowa


Some results

Some Results

  • 98 Students Enrolled in Entrepreneurial Credit Course and 23 in the degree program (First Year).

  • Seven student business plans from the NIACC JPEC were submitted for the state wide business plan competition sponsored by the JPEC’s statewide.

  • Nineteen Scholarships were awarded to students in the JPEC Entrepreneurship Degree Program.


Some results1

Some Results

  • 30 new businesses started this fiscal year with a total of 66 employees as a direct result of our programs.

  • The JPEC delivered over 65 entrepreneurial and small business programs throughout the year and reached over 1,500 Iowans.

  • The North Iowa Venture Capital Fund has reviewed over 50 deals and funded 5 for a total of $800,000. 63 new jobs in North Iowa will be the result of one deal and retention of 30+ in a second.

  • The new North Iowa Business Accelerator has consulted with over 10 businesses in less that half a year, with state funding and jobs as a result.


Ii north iowa growth partnership

II. North Iowa Growth Partnership

Partners:

Mason City EDC

Clear Lake EDC

Cerro Gordo County

Alliant Energy

NIACC

Implemented


Iii labor shed analysis

III. Labor Shed Analysis


Traditional labor shed

Traditional Labor Shed

  • Narrow geographic focus

  • No or little cooperation among competing EDCs (Economic Development Corporations)

  • Resulting in no time synchronization for the analyses

  • Mind set – “win/lose”; no “win-win”


Traditional labor shed1

Traditional Labor Shed

  • Meaning that when a prospect comes to our region we have:

    • Narrow labor sheds

    • Dated labor sheds

    • Labor sheds that cannot be aggregated because they are not conducted at the same time

    • EDCs not cooperating, thereby failing to leverage regional assets and resources


Solution to the labor shed issue

Solution to the Labor Shed Issue

  • Nine-county labor shed

  • Conducted at the same time

  • Establish comprehensive partnership:

    • NIACC, IWD, and EDCs

  • Thereby, leveraging resources for cost effectiveness

  • Aggregate the 9 county labor shed data to demonstrate our POTENTIAL to business prospects


Solution to the labor shed issue1

Solution to the Labor Shed Issue

  • Nine-county labor shed

  • Conducted at the same time

  • Establish comprehensive partnership:

    • NIACC, IWD, and EDCs

  • Thereby, leveraging resources for cost effectiveness

  • Aggregate the 9 county labor shed data to demonstrate our POTENTIAL to business prospects

Implemented


Solution to the labor shed issue2

Solution to the Labor Shed Issue


Iv cluster analysis

IV. Cluster Analysis


Critical need

Critical Need

  • What is absolutely critical for North Iowa is to find its competitive advantage.

  • Therefore, NIACC is partnering with IWD and each EDC in our region to complete a comprehensive 9 county cluster analysis to determine our competitive advantage.


Clusters

Clusters

  • Clusters: critical masses in one place, linking industries that enjoy unusual competitive success in a particular field.

    • Example: Silicon Valley

  • Cluster analyses identify competitive advantage

    • The key is to identify regional strengths to leverage new business development through the identification of “multipliers”


Clusters1

Clusters

  • Clusters: critical masses in one place, linking industries that enjoy unusual competitive success in a particular field.

    • Example: Silicon Valley

  • Cluster analyses identify competitive advantage

    • The key is to identify regional strengths to leverage new business development through the identification of “multipliers”

Implemented


Cluster analysis

Cluster Analysis


V north iowa accelerator

V. North Iowa Accelerator

Business Accelerators: Organizations that foster the accelerated growth of new and existing businesses.

Partnership:IDED, Community College regions 1, 2 and 3; and IWD


North iowa accelerator

North Iowa Accelerator

  • NIACC is among the first organizations in the State to be honored and selected by the Iowa Department of Economic Development as a “Business Accelerator”.

  • Our “territory” extends to Areas I & III, through cooperative arrangements with my colleagues in those areas.

  • Assistance to meet the needs for Areas 1 and 3 is provided by IWD


Significance of the business accelerator

Significance of the“Business Accelerator”

  • Rural economic is important to the State of Iowa

    • Represents a vision that all of Iowa needs to prosper

  • Represents a paradigm shift in the “way we think” about economic development

    • Fishing and gardening

    • Look internally to invest in ourselves

  • Vote of confidence in NIACC and our region

  • Demonstrates that Community Colleges are well positioned to lead these efforts


Significance of the business accelerator1

Significance of the“Business Accelerator”

  • Rural economic is important to the State of Iowa

    • Represents a vision that all of Iowa needs to prosper

  • Represents a paradigm shift in the “way we think” about economic development

    • Fishing and gardening

    • Look internally to invest in ourselves

  • Vote of confidence in NIACC and our region

  • Demonstrates that Community Colleges are well positioned to lead these efforts

Implemented


Vi business incubator

VI. Business Incubator

Leveraging existing resources:

Pappajohn Center

SBDC

Iowa Workforce Development Center

Business Accelerator

New Jobs Training Program


Vi business incubator1

VI. Business Incubator

Leveraging existing resources:

Pappajohn Center

SBDC

Iowa Workforce Development Center

Business Accelerator

New Jobs Training Program

In the planning

stage


Vii north iowa venture capital fund

VII. North Iowa Venture Capital Fund


North iowa venture capital fund llc

North Iowa Venture Capital Fund, LLC

  • Comprised of 61 accredited angel investors and/or businesses

  • Capitalized and raised $1.7M

  • Look to invest in Northern Iowa

  • Investment strategies will vary from start-up to expansion businesses

  • Angel Investment Motivation: ROI


North iowa venture capital fund llc1

North Iowa Venture Capital Fund, LLC

  • Comprised of 61 accredited angel investors and/or businesses

  • Capitalized and raised $1.7M

  • Look to invest in Northern Iowa

  • Investment strategies will vary from start-up to expansion businesses

  • Angel Investment Motivation: ROI

Implemented


What s possible today for seed and start up business

What’s Possible Today for Seed and Start-up Business?

Wellmark Venture Capital Fund

$10-50K

Bank Financing

$10-50K

Available Capital for a Seed/Start-upBusiness

$10K-1M

Angel

$10-100K

North Iowa Venture Capital Fund, LLC

$50-160K

Venture and Equity Fund Network

$100-500K plus

Iowa Jobs Programs:$22M Invested by NIACC Board

Wellmark

Additional Funding

$50,000

North Iowa and Iowanow have access to more early stage equity capital then ever before.


Viii north iowa growth marketing partnership

VIII. North Iowa Growth Marketing Partnership


North iowa growth marketing partnership

North Iowa Growth Marketing Partnership

  • Seven Counties

Implemented


Ix regional economic development

IX. Regional Economic Development


Current status

Current Status

  • Our region “strikes out” too often.

  • Most often, we’re not even “up to bat”

    • Des Moines, Cedar Rapids etc hit the home runs before North Central Iowa knows there’s a ball game.

  • Resources are not leveraged

  • Cities & counties act as if their competition is “just down the road”


Current economic development organization

Current Economic Development “Organization”


Future vision for economic development organization

Future Vision for Economic Development Organization


Future vision for economic development organization1

Future Vision for Economic Development Organization

First Steps:

9 County Labor Shed9 County Cluster AnalysisBusiness AcceleratorBusiness IncubatorNorth Iowa Venture Capital FundNorth Iowa Growth MarketingRegional Economic Development


Conclusion

Conclusion

  • Someone once asked Winston Churchill,

    • “Mr. Churchill, why are we fighting this terrible war?”

    • Churchill responded,“If we don’t, you’ll understand why later.”

  • The same analogy holds now for the decisions we must make. We must take action now to change the paradigm of economic development in our region.


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