Business Retention & Expansion

Mission:

This subcommittee develops and implements a business retention program that recognizes that our community's best companies are our competitor's best prospects. A business retention program is crucial since real job growth over time comes from the expansion of businesses already in the community.

Strategic Objective:

Our community's best companies are our competitor's best prospects. Business Retention programs like these have increased in importance as communities recognize that real job growth over time comes from the expansion of businesses already in the community. This committee will focus on retaining businesses and connecting them to the resources that can help them grow

A formal business retention program will provide a systematic approach to working with existing employers to:

• Identify problems that could cause employers to leave a community;
• Identify opportunities to help companies expand their presence in the community; and
• Build relationships with [and among] individual employers.

I. Where are we and where do we want to be:

What has been our strategy in the past, how has it worked (or not) and what is our existing business base?

II. Business Retention with a Call to Action:

Help community leaders understand what will drive the community's economy forward and help determine which companies will be at the center of the community's economy in the future. This includes:

• Help existing companies draw new sales dollars from outside the area.
• Build the economic base, adding new jobs and cash flow to support other business.
• Support the resource needs of existing businesses, rather than competing with their needs as business attraction can.
• Create a positive self-sufficient attitude within the community

III. What might a company evaluation look like:

• Value to the community
• Growth potential
• Technological adaptation and leadership
• Risk of downsizing and/or leaving
• Satisfaction with the community

This information goes well beyond the typical investigation (reports filled with pie charts & graphs) of community problems and business concerns needed to provide direct services.

To address the weaknesses in the typical business retention survey, there is a need to increase the strategic value of information gathered through the business retention process.

Strategic information is comprised of two types of information: predictive and market intelligence.

• Predictive information provides value by helping the development executive anticipate changes impacting a community's economic base. Predictive information is focused on a company's decision-making process.
• Market intelligence seeks to document or quantify competitive advantages and weaknesses affecting retention and attraction.

The key to strategic information becomes asking the right questions. Business retention surveys should investigate:

• Product/product development
• Market trends
• Industry trends
• Management practices
• Workforce satisfaction
• Community relationships.

IV. How can an economic development organization adopt a growth-oriented strategy without total reliance on business attraction?

BUSINESS DEVELOPMENT

Connect companies and business support programs to stimulate and/or accelerate the growth of companies in the community (Chamber Business Advisory Program)

• Profitable business with 25-75 employees[is this the right number for UA?];
• Solid growth potential;
• Growth-oriented management;
• Majority of product/services sold outside the region.
• The alternative is to take all applicants on a first-come, first-served basis.

NETWORK HUB

Develop, facilitate, co-partner connection opportunities for area business executives to create clusters with like minded interests and needs

Summary: The traditional model for economic development is a blend of business retention/expansion, business attraction and a third element, perhaps tourism or entrepreneurship. By upgrading business retention and expansion to a more comprehensive portfolio management strategy, we can better meet the challenges facing UA and serve our constituent groups better.