I say it all the time -- if Western New York is going to turn itself around, to really spur a new era of job growth and economic vitality, it's going to take homegrown businesses leading the way. It's not going to happen by trying to recruit out-of-state industries into the region.
Daily Yonder has a post today that backs that supposition. It's about how North Carolina paid Dell a lot of money to locate a facility there, but now Dell is closing. Meanwhile, a locally grown company that got almost no government assistance is adding 600 jobs.
When are we going to halt public expenditures on the "buffalo hunt" for footloose industry and instead focus our resources and efforts on the sector that produces by far most of the jobs -- existing industry and homegrown business?
Note, that the author isn't against the kind of infrastructure development going on at the new agri-business park (though I know some of our conservative readers will take issue with the expenditure). He's talking about tax breaks and outright grants to bring in business.
The scholarly literature on incentives shows that they are a very poor investment of public resources. And, of course, the business sector has become expert at playing off one state against another in something akin to corporate extortion; and who can blame them?
Imagine if the South in general and North Carolina in particular had put all of the money spent on industrial recruitment into education, training and small business support. We would be watching even more Quintiles, Cree, PPD, Southern Seasons, Performance Bicycle and other homegrown entrepreneurial success stories all across North Carolina. And, although there are no silver bullets in economic development, homegrown businesses are more likely to stay put, invest in the local community, provide stable civic leadership and keep the control and wealth local instead of away at some remote corporate headquarters.
I continue to maintain that we need to find some way to spur more entrepreneurship, to encourage people already living and working here to take their great ideas and turn them into businesses. If we do invest (as taxpayers) in job growth (not saying we should, just if we do), it should be in businesses started locally, not in recruitment.
"Imagine if the South in
"Imagine if the South in general and North Carolina in particular had put all of the money spent on industrial recruitment into education, training and small business support."
Yes imagine. Imagine if the politicians that cut the deal with Dell had invested in themselves and not some speaking point for an election or promise/expectation of campaign financing.
The problem this area would have with educating the youth to be entrepreneurial is that they would see the green pastures and move away to them for the greater opportunity, as entrepreneurs are prone to do. Education needs to be backed by incentives to stay. Easy access to investment capital with little or no interest rate and long term tax breaks need to be included. Then in 20 or so years you may experience the economic and social growth you are looking for.
Few politicians have the spine to push such a long term, expensive and slow growth strategy, fewer sill who are willing to work for a long term goal get elected. Just as few voters are willing to be patient for results in a local economy such as this one.
On basis do you make this
On basis do you make this statement: "they would see the green pastures and move away to them for the greater opportunity, as entrepreneurs are prone to do."
Most entrepreneurs bloom where they're planted.
I don't have at this time any specific agenda in mind to promote local entrepreneurship, but worrying about people moving away is the least of our worries.
I've always been an advocate
I've always been an advocate of 'grow your own', but the public needs to be reminded that you've also gotta 'shop your own' too. I always recommend locally owned establishments to residents, and patronize them myself. Eating out at chain restaurant, or purchasing gifts from a large box store does nothing to help our local economy. Eat local, shop local, play local!
replyPosted by Howard Owens
replyPosted by Howard Owens on November 20, 2009 - 2:41pm
On basis do you make this statement: "they would see the green pastures and move away to them for the greater opportunity, as entrepreneurs are prone to do."
Most entrepreneurs bloom where they're planted.
Then you would be the exception to your "bloom where they are planted" theory?
No problem with that, it just made me smile :)
Bea, there are always
Bea, there are always exceptions!
Bea- weren't you already
Bea- weren't you already aware Howard is exceptional? hmmm
Well, at least, that's what
Well, at least, that's what my mother always said.
My mother always said I could
My mother always said I could be anything I wanted. I decided to be a geek instead of a business owner.
Bud, Howard, Chris Bud, yes,
Bud, Howard, Chris
Bud, yes, he is exceptional.
Howard, your mother was right!
Chris, as the mom of several self proclaimed geeks and nerds, I find it quite charming. Someday, though, you might end up owning your own business. Then we'll have to coin a phrase that describes you...maybe a geekkeeper?
My girlfriend's mother calls
My girlfriend's mother calls me MacGyver. I'm better at being a "hands-on" guy than a "filling out the tax papers and whatnot" guy.
In other news, I'll be giving you a call Monday afternoon about that computer.
Harvey McKay in his book
Harvey McKay in his book about salesmanship and entrepreneurial successes "Swim with the Sharks" says that every successful venture has a combination of an "outside guy" and "inside guy" (or gal of course). If the boss is a CEO type he needs a good manager behind him and if the boss is a paperwork, number-cruncher type, he needs a great extrovert with him. Maybe some local workshops or seminars with people interested in business ventures would be an idea, so partners can find each other. Kind of like a capitalist dating thing.
Dave, that is so true. The
Dave, that is so true.
The YWCA recently concluded a Power Up program that ran seminars, much like you describe, for women either looking to improve their job situation or looking to start their own busines.
Beth, Lorie, Jennifer and I participated as mentors in this program. At the graduation ceremony, I couldn't help but think that there are people who could 'partner' with those about ready to take the leap into their own businesses.
'Capitalist Dating' Has an
'Capitalist Dating'
Has an interesting ring to it...I like.
This is one isolated case of
This is one isolated case of a company that has a historically bad reputation on not paying out its obligations or commitments to the people in the US. Dell is not a good example since they did not have a long term plan for their plant in some isolated area in North Carolina, just refer to consumer affairs on the history of Dells violations to its customers. Howard I applaud your effort on growing small business in Batavia and Western New york. However North Carolina does have areas that are thriving economically like the Triangle area including towns of Raleigh, Chapel Hill, and Cary. Cary has grown from a town of 10,000 people back in the 1980's, to over 140,000 people today. It happened by offering tax incentives to companies with lower overhead expenses with appreciating assets set to long term goals for the companies. The area of Research Triangle Park in North Carolina has over 100 companies in the area and is the largest research and development site in the United States. Yes Quintiles is a great example, so is the company SAS located in Cary. It is no mystery that Raleigh was ranked #1 for business and careers in the country by Forbes.
"Imagine if the South in general and North Carolina in particular had put all of the money spent on industrial recruitment into education, training and small business support." Now this is an interesting quote. The schools UNC at Chapel Hill, NC State, and Duke university have some of the best business programs in the country for undergraduates. Top employers like Google, Goldman Sachs, Microsoft, Morgan Stanley pay top dollars for students from these schools right out of college, job offer in hand. The town of Cary has the most highly educated people in the country, with the highest percentage of Graduate Degrees and Bachelors Degrees. So I would say they are doing a fine job with education and recruitment.
There are a lot more factors involved than having an idea for a small business. Just ask the repeated revolving businesses in Batavia and the ever changing new small companies that have leased the same places over the years. There are a lot of qualified, highly motivated, educated workers in Western New York but they do need the incentives and lure of big business and quality companies to the area. A great idea for a small business based on a great "idea" is no longer economically feasible, there is a reason why most small business do not last beyond 3 years. Offering incentives to more quality businesses will produce jobs and help grow Western New York.