Forums: Discussions for entrepreneurs and small business.

I`ve enjoyed browsing this website for some time and it really has some valuable resources for a small business owner. This may not be the place to post this, but has anyone ever heard of industrial social entrepreneurship? I live in a southern rural area that has been decimated by the loss of the textile industry and didn`t know if anyone knew of any resources on how to find larger businesses that are expanding or relocating. Our county has had the highest unemployment rating in the state for a couple of years now and I would like to do something to help. Unfortunately, I can only employ a few people in my business. Has anyone ever heard of any social entrepreneurs trying to help poorer areas by relocating or expanding businesses there? I know I`ll probably take some flak for posting this here but it`s a serious question and I would love to hear if any of you have any advice or resources on this matter. Thanks!

ptroger;

interesting question, but....
there is usually a reason for the high unemployment rate of a given area, and the factors are endless. Consider

• level of education
• other skill sets through experience, training -  and are they transferable
• state of infrastructure
• location and transportation
• relative competitive access to materials or other input factors
• pay scale levels of the demographic
• age of demographic and participation in the work force
• policies of municipal & state gov`ts w respect to taxing businesses, employment
• sources and availability of risk capital

There is little a single entrepreneur can do to address many of these factors. Having said that, there is some benefit to banding together for lobbying for changes in policy, there is a benefit to sharing advice and experience, and pooling of ventures to spread risks through diversification can help (but this needs a fairly intricate legal arrangement).

If one wanted to see examples of using some of these levers to address this problem, I would urge you to look at the South Korean and Irish examples, and the success of micro-finance projects. With sensible tax policy, supportive groups for micro-credit startups, a half wise intelligent education program - a great deal can be done. The key to this is organizing. Good luck





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This actually came up in relation to Michigan, which also is being hit big-time by the descent of the large auto manufacturers.

On a seemingly unrelated topic, another community member was trying to figure out how to value a Web site that had grown to significant size, where he was highlighting all the benefits and attractions of a town....I think in Australia. The site was taking too much of his time, someone wanted to buy it, and so forth.

Bring the two together.

What if you were to begin building a comprehensive Web site, optimize it into many connected themes, and focus on all the reasons why industries and businesses should come to your area?

Look at what Wal-Mart did, saving money by putting their headquarters in the middle of nowhere. It suddenly became Somewhere because of that single event.

A major Web site gathers with it a substantial amount of power. That power could be used to affect the local zoning and tax laws. It could become a focal point for like-minded entrepreneurs you haven`t heard of at the moment.

Consider some of the bloggers and their impact on national politics. If you did it right, you could have a potentially similar impact on local, county, and state economics. It all comes down to whether or not there are compelling reasons for businesses to relocate to your area. The disappearing textile industries certainly raise a red flag in my mind, but then, I don`t know the area at all.

Thanks for the responses. Crazy Diamond, I have never heard of the Irish microfinance projects. I`ll have to study up on that one. Do you think that it could be adapted to a smaller area?

Craig, I have thought before of organizing a group of local angel investors and using a website to attract businesses through those means. Is that where you are going with your idea?

Where do you live in the south?

I`m thinking more about developing an advertising and marketing Web site, since apparently nobody "in authority" down there can do it. Yes, if you have a growing membership of local entrepreneurs, you could use that as well.

More useful, though, would be to bring together your reality-based business knowledge, and that of your other local business owners. Use that knowledge to highlight why big industry should move to your area.

Is there anyone at all in the local government who cares in any way about making the area attractive? Probably not. So...take the job into your own hands, get some additional support, and take the initiative. If few other business owners have an interest, that`ll tell you why no large industries are interested either.

So many people these days talk about how hard it is to find someone to love, to marry, to date, to have a relationship with. But so few people ever talk about what they`re doing to make themselves attractive; what they bring to the relationships. Same with business courting large industry.

Yes, you could use the Web site to make some money, maybe. But that`s not the point of it, in my opinion. Instead of spending millions of dollars on a PR campaign, you could do a "passive" campaign, where you put up the site, SEO it into the rankings and visibility, and hope to attract someone`s interest.

Thanks for all the suggestions. Does anyone have some ideas on some creative incentives that our county could offer to start-ups? Something that would help attract businesses that otherwise might not locate here. I`m hoping to hear something innovative and new that would set us apart from areas that had your traditional incentives such as small tax breaks. Any suggestions???

Tax incentives, labor costs, land costs, transportation advantages, raw materials.

Your state department of economic development would be able to help you with this.  Part of their job is to find companies that want to relocate or establish a presence in a state.  But, you need to have all your demographic information on your area (including information on taxes and available work force) available to present. 

 

Also think in terms of what compromises your area is willing to make to bring in a business.  A community in Nevada for example, lost out on a jetliner refurbishing pant that would have dumped $5 million dollars a year into the economy because county officials wouldn’t wavier on $20,000.00 a year property taxes.

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The older we get, the more excuses we make for not chasing after our dreams. But truth is, goals are attainable at any age.

I think this is a great idea. It's like industrial attachment for entrepreneur wannabees.

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