Development Issue, Why are we all chasing the same “tail”?

The cure for what ails cities economically seems to be in finding that next big expansion project, or so it seems from all of our collective efforts. At the State, County and local levels, most of our efforts are geared towards finding a company that wants to expand, and having them place the new “factory” (now distribution center) in their city. Then they go on to sound like Sally Fields with the “You like me, you like me, you really like me” schpiel.

They give away land. Hand out incentives like they were Halloween candy. Build their roads and sewers. I will admit, there are a few strategic placements, such as a Toyota or BMW plant, which sets an area on to a totally new path. By and large, most of the efforts are about landing another “box”, with relatively low paying jobs.

What many cities seem to be missing is that these companies are headquartered somewhere else, and will have little loyalty to the region. Few executives will make the move, and there will be few professional jobs that move with any expansion.

At the same time, they forget that these companies all started somewhere, by one person, or a partnership. They started in garages, small buildings, or at the kitchen table. They forget that that the small business owner is the one driving growth and stability. They forget that small businesses can become big businesses. Why then do they not focus their resources on the small business or start up opportunities? Why don’t they knock down the walls of government regulation for the small business? Why doesn’t the governor show up for ribbon cuttings for the new 5 person shop that just opened? Governments forget that many small businesses don't get off the ground because they can’t get around all the regulations that governments have set up. (Have they set them up to keep the small company out…?)

Much of our economic development effort looks like the kid who wants something and wants it now. We have no willingness to delay our gratification. We criticize a corporation for chasing after quarterly results, yet demand out elected officials deliver the next big “box”.

I suggest we start by redirecting our focus onto the start up. The small “guy”, who just might get big, and stick around. Quit chasing the deals where 10 cities are competing for the same business. Help the start up. Help the little ‘guy’ grow. Get regulations out of the way, help them by keeping City Hall open later. Give land away to a small endeavor. Gain a reputation for incubating companies. Don’t chase the Cisco or IBM expansion. Make your area the place where the new competitor will set up shop.

Do this and we might see some real results. But you won’t see it in 1 or 2 years. You will see the results in 10 years and longer. But then again, maybe that is too long for some people to wait…..