Economic and Community Development

1. Economic and Community Development

4. An overview of The national and regional Economy

5. Population Change

8. Relative per capita income

10. Case Study: Appalachia Kentucky

11. Kentucky • 54 counties of Kentucky’s 120 counties are classified as Appalachia • The 54 counties that comprise Appalachian Kentucky are among the poorest in Appalachia. Compared with the U.S. population, Appalachian Kentuckians have lower income levels, higher poverty levels, and greater unemployment rates.

12. K e n t u c k y M a l e s N o t i n L a b o r F o r c e P e r c e n t a g e o f M a l e s N o t i n L a b o r F o r c e L e s s t h a n 1 5 % 1 5 % - - 3 0 % 3 0 % - - 4 5 % 4 5 % - - 6 0 % M o r e t h a n 6 0 %

13. The Urban/Rural Difference:A County Level Investigation

14. Quality of life variables

15. Changes from 1990 - 2000

16. Six Strategies to Improve Appalachian Economy • Invest instead of spend • There are other effective tools other than industrial attraction • Create access to capital for entrepreneurial and small business development • Health care should be a priority • Go Regional! • Envision a new long term framework for sustainable development

17. Investment instead of spending • The composition of expenditures in rural areas is significantly different between rural and urban areas • A much higher proportion of federal funds are spending (Social security, SSI, disability, welfare) • Spending does not increase the long term competiveness or economic capacity of an area in the same way as do investments in such things as public infrastructure, healthcare, education and workforce development

18. VS

19. Invest in livable communities • Donot do so to attract firms • Do so for two very important reasons • Increase the productivity and profitability of existing businesses and new businesses • Engage in people attraction • The new generation is footloose and fancy • They decide a location first and then employment

20. Industrial Recruitment There are other ways… • Economic gardening • Targeted attraction models • New business development • Business retention and expansion

21. Manufacturing Trends

22. Net Job Growth Continued All Jobs

23. Improve Access and Demand for Capital • The recent financial crisis and resulting recession has had a profound impact on both businesses and households throughout the country • The impact of declining credit may be particularly severe in the Appalachian region because of the important role small businesses play in the economic growth of the region • Even more, small businesses appear to suffer more from a loss of credit than large businesses

24. Supply side Microfinance institutions Revolving Loan Funds Government secure loans Attract venture capitalists More research is needed to better understand the role of supply and demand in lending. • Demand side • Entrepreneurial training • Financial management skills • Improve the economy???

25. Health Care Should Be a Priority • Two-thirds of all Federally designated health care shortages occur in rural areas • Inadequate health care is a large problem for those who live in rural America and it’s a huge disincentive for businesses • Workforce development begins at birth • Critical workforce issues • Health care is a driver for economic growth • Health care is an export industry

26. Go Regional! • Economic transactions, workforce mobility do not begin, end, or follow city limits or county boundaries • Rural counties are not large enough to compete on their own in today’s global economy. • Smaller jurisdictions do not have the critical mass of local leadership and civic infrastructure needed to play the game.

27. SET Example: Industrial Make Up

28. Who is your workforce?

29. New framework can move Appalachia forward • Civic leadership and engagement • Asset based community development • A culture of innovation • Diversity, access, and inclusion • Youth engagement • Wealth creation and retention • Regional initiatives