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![Two Models: Leaders or Feeders
• Brad Feld, Startup Communities
– Boulder, CO
– Tech
– “Entrepreneur Ecosystems”
– “Government should always be Feeder, not
Leader.”
– [Government can’t do entrepreneurship right –
only entrepreneurs can]
– [Economic development is a waste]
www.wiseeonomy.com](https://image.slidesharecdn.com/leadersorfeedersrucker072314-140909133535-phpapp01/75/Leaders-or-feeders-rucker-07-23-14-18-2048.jpg)
Uploaded byDella Rucker
Leaders or feeders rucker 07 23 14
The document discusses the relationship between local governments and small businesses, proposing that governments should primarily act as 'feeders' rather than 'leaders' in fostering small business ecosystems. It highlights the unique roles and resources governments can provide, such as convening power and partnerships, while also addressing the challenges they face in supporting an increasing number of small businesses. Additionally, it outlines the situations where government leadership may be necessary, emphasizing collaboration and community engagement.
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Leaders or feeders rucker 07 23 14
- 1. Leaders or Feeders: What Governments Can Do To Help Grow Small Businesses Della G. Rucker, AICP CEcD Principal, Wise Economy Workshop Wiseeconomy.com LocalEconomyRevolutionbook.com www.wiseeonomy.com
- 2. Your Presenter •All those letters? • Economic Revitalization/Public Engagement • Building: Communities that work long term– – Strong economy – Resilient economy – Invested people www.wiseeonomy.com
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- 4. Not all smallbusinesses are the same www.wiseeonomy.com
- 5. What’s With Them? Understanding why governments and small businesses don’t understand each other (or, Governments are from Alpha, Small Businesses are from Beta) www.wiseeonomy.com
- 6. The World ofa Small Business • Independence • Over-capacity • Speed • Myopia www.wiseeonomy.com
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- 11. And… the worldof local government • Responsibility • Protecting • Scrutiny • Caution www.wiseeonomy.com
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- 17. What does thatsound like? “Why do I need to follow that regulation/get that permit/live by your rules?” “Just get out of my way and let me run my business.” “You’re taking too long!” “That’s what the regulation says.” “You can’t have an exception.” “This is the process.” www.wiseeonomy.com
- 18. Two Models: Leadersor Feeders • Brad Feld, Startup Communities – Boulder, CO – Tech – “Entrepreneur Ecosystems” – “Government should always be Feeder, not Leader.” – [Government can’t do entrepreneurship right – only entrepreneurs can] – [Economic development is a waste] www.wiseeonomy.com
- 19. Hm. • Dellasez: – Tech = subset of small business – Small businesses have a much wider range of needs than tech alone. – Ecosystems aren’t just for tech dudes – Local government has a unique role, unique perspective, unique assets. Needs to be part of the equation. – Feeding does not equal useless. Everything needs to eat. www.wiseeonomy.com
- 20. Leaders |Feeders •Control • Direct • Requirements • Hierarchy • Reporting • Make it Happen • Credit • Support • Guide • Resources • Network • Information Sharing • Help it happen • ? www.wiseeonomy.com
- 21. Leaders |Feeders •Recruitment • Sales • Star Chamber • Confidential • Small # Big Projects • Large Money to Small # • Staff spends time on a few big businesses • Connection • Share information • Everyone we can get • Transparent • Large # Small Projects • Small money to large # • Staff spends time on… www.wiseeonomy.com
- 22. Consider the PracticalMatters: • More small businesses + less staff and budget = … a big problem for local governments. • More demand for transparency (read: everyone can be their own investigative reporter) = higher risk in “confidential” plans and deals. • More economic dependence on small businesses = more dependence on businesses that are overextended, not always seeing the whole picture, and often flying by the seat of their pants. www.wiseeonomy.com
- 23. Therefore, we needto change: • Small number of intensive interactions to large number of less intensive “touches” • Build self-reinforcing connections – networks • Enable, within reason • Open up. • Partner. • Focus on what we uniquely bring to the table www.wiseeonomy.com
- 24. The Big Secret • Most of the time we can make a better impact on our local economy and community if we take a Feeder Role, rather than a leader. – Feeder =/= passive or unimportant. – Feeder = adding necessary energy to system. • But in some situations, we need to be a Leader. More on that shortly. www.wiseeonomy.com
- 25. The Care andFeeding of Small Businesses www.wiseeonomy.com
- 26. OK. So whatdo local governments “uniquely bring to the table?” • Convening power • Connector • Attention-Getter • Space owner • Big picture view • Fair Rules Administrator • Resource-sharer • Partnership-builder www.wiseeonomy.com
- 27. So what canwe do? • Convene Connecting events: – Not just “Networking” – Useful information – Shared group exploration • Your Role – Host – Structure – Institutional memory • Example: Annapolis EDC www.wiseeonomy.com
- 28. So what canwe do? • Direct popular/media Attention to small business ecosystem – You have it, they don’t – They want it/need it • Your role: – Story-finder – Media/business connector • Example: Brimfield, Ohio Police Department www.wiseeonomy.com
- 29. Give ‘em alittle Space • Types of space – Work space – Selling space – Meeting space • Your role: – Space finder – Space promoter – Space manager • Example: Allegheny Valley EDC Makerspace • Example: Findlay Market, Cincinnati www.wiseeonomy.com
- 30. Fair Rules Administrator • Communicate permit/license/zoning/etc. processes – Communicate clearly – the how and the why – They want to know what to expect – Make it predictable • Your role: – Make it clear – Make it consistent – Make it fair www.wiseeonomy.com
- 31. Resource Director •You have: – Connections to state – Connections to foundations – Connections to other businesses/people in community • Your role: – Tell them what’s available – Tell them more than once – Connect them – Help them research new avenues for help • Example: Ann Arbor SPARK Virtual Business Advisor www.wiseeonomy.com
- 32. Partnership-Builder • Youknow who else is working on what in your community. • Your small business people don’t • Your Role: – Connect your powers with those of other organizations. – Make it happen www.wiseeonomy.com
- 33. When do youhave to Lead? • Your community needs entrepreneurs and small businesses but they’re not thriving. • Your small businesses seem dispirited, tired, burned out or just worn out. • No one else in the community is stepping up to the plate • Example: Kalamzoo, MI www.wiseeonomy.com
- 34. Tips for Leading • Don’t do it alone • Pull in everyone you can get • Share problem identification and strategy development • Share jobs • Maintain long term horizon • Test programs before big investments • Be ready to shift to Feeder • Don’t worry if small business people don’t show up right away www.wiseeonomy.com
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- 36. Thank you! Formore information: www.wiseeconomy.com www.localeconomyrevolutionbook.com Twitter: @dellarucker Also on LinkedIn, Facebook, SoundCloud, YouTube, etc. www.wiseeonomy.com