IF YOU HAVE TIME TO WATCH ONLY ONE VIDEO ON ENTREPRENEURSHIP--



Picking an Entrepreneur: On Enterprise Facilitation



My advice was firstly to give up the idea that we could pick 'winners'--nobody can do that.  Secondly, I suggested that if they really wanted to maximize their chances of finding prospective new entrepreneurs, they should look at who among the applicants was a team builder.  The person who is ot capable of enlisting the support of others is the most likely to succeed.  

~ Ernesto Sirolli 

Tallahassee in the Top Ten of US Start-Up Cities AND in the Bottom for Job Creation


Ben Casselman, chief economics writer for the FiveThirtyEight website, writes that 
the national startup rate for businesses fell in 2014 for the second straight year, to eight percent. The rate at which Americans start businesses has been falling for more than three decades, and while the decline has slowed in recent years, it has shown no sign of reversing. . .new businesses play a vital role in creating jobs, improving productivity and spurring economic growth.
Countless cities had tried strategies — “incubators,” “accelerators,” venture funds, tax breaks — in an effort to capture some of Silicon Valley’s elusive magic. Few had succeeded. 
However,  Tallahassee ranked ninth in a top ten review of Metro areas with the fastest-growing rate of new startups (less than one-year-old) in 2014.  A new annual study of entrepreneurs, a joint effort of the Census Bureau and the Kauffman Foundation, was released in late 2016. It showed that nearly one in ten businesses with employees were new in 2014.  

On the other hand, Tallahassee ranked 142nd in a listing of 150 cities (with Detroit being #150) for new job creation, as ranked by WalletHub They looked at 23 specific criteria — among them job opportunities, employment growth, median income, unemployment rate, full-time and part-time, job security, workers in poverty, and so forth.

With a score of 142, Tallahassee scored in the bottom 10 and was the lowest of any Florida city in the Wallethub study.  So, while start-ups may be booming, they are not having an impact on job creation in our community.  
The results ranked Scottsdale, Arizona; Plano, Texas; and Orlando at the top of the list, while Fresno, California; Bakersfield, California; and Detroit scored at the bottom.  [Here's the link to the methodology.]
In a different study, the Milken Institute’s annual ranking of best-performing cities, [released December 2016], Tallahassee received the lowest ranking among all Florida cities. The Institute ranked 200 cities and Tallahassee ranked 172*.  
(Gainesville ranked 100. Orlando ranked 9. Tampa/St Petersburg 33.) The Milken Institute’s Best-Performing Cities index provides an objective benchmark for examining the underlying factors and identifying unique characteristics of economic growth in metropolitan areas. The index uses a fact-based set of metrics such as job creation, wage gains, and technology developments to evaluate the relative growth of metropolitan areas. 
 
*Tallahassee Rankings within the 200 US cities dropped in 2016 from the previous year.

 2016 Ranking 172
 2015 Ranking 158

Other Tallahassee Rankings (out of 200 cities): 

186 Job Growth from 2010 - 2015

170 Job Growth from 2014 - 2015

190 Wage Growth from 2009 - 2014

  95 Wage Growth from 2013 - 2014

130 Short Term Job Growth from - 2015 - 2016

101  High Tech Jobs GDP Growth from 2010 - 2015

123 High Tech Jobs GSP Growth from 2014 - 2015

143 Number of High-Tech Industries - 2015

According to the Tallahassee Democrat,  A recent Florida Chamber of Commerce voter survey showed that Tallahassee was the only metropolitan area where jobs and economy were not top priorities among voters.

However, this January's Florida Trend magazine featured a sponsored section on Tallahassee/Leon County called "Reimagining Its Future" touting its new take on economic development. Read the report here [opens as a PDF].

Economic data available through the Tallahassee Economy Project shows that the Tallahassee/Leon County area has had nearly flat job growth at under 1 percent, gross domestic product growth at less than 1 percent and relatively flat income growth.

It remains to be determined how this new Office of Economic Vitality will address job creation, the high poverty rate and significant unemployment numbers, especially in the minority community. 






Why We're Talking About Enterprise Facilitation


Doesn't every community's future lie in capturing the passion, intelligence, imagination and resources of its people?  The Enterprise Facilitation concept developed by Ernesto Sirolli and detailed in his book, Ripples from the Zambezi uses a person-centered approach to local economic development.  

It is a much different approach than economic development strategies in most American cities, focusing on job creation and retention through business supports such as incentives and tax credits.  

Many organizations such as Chambers of Commerce are frustrated that, while jobs are created in areas of their city, little impact is made upon things like the poverty or crime rates.  While economic development resulting in gentrification has resolved some of these social issues by relocating the problem to another place, the underlying disparities are not addressed.  

Residents of communities, together with their elected officials, planning staff, economic development proponents talk often about 'quality of life' and that a good quality of life is what attracts residents and industry to an area--or encourages them to leave for 'greener' pastures.  

Enterprise Facilitation is an approach that directly addresses people who are aspiring entrepreneurs or people who have existing businesses, but are untouched or underserved by traditional resources for entrepreneurs in any community.  

Rather than relying on job creation in a vacuum, for the Enterprise Facilitation concept to work, it takes local leadership--an essential component.  Over the years, the Enterprise Facilitation concept has validated its founding tenant - that without civic understanding and belief in the people within its own community--nothing can happen.  










ENTERPRISE FACILITATION (EF) HAS CHANGED THE CULTURE OF AN ENTIRE COMMUNITY

How could a community start 100 new businesses and assist 1100 entrepreneurs without providing a penny of funding or an hour of classroom bringing to local entrepreneurs?  

Does that sound like an unrealistic model?  Something that has never been done before? 

Enterprise Facilitation is not a new and unproven maverick approach to local economic development; it is a 35-year-old professional practice that can be taught to anyone who is willing to listen.

Enterprise Facilitation is a local economic and community development method that keeps community development academics and bureaucrats scratching their heads after 35 years of practice. 

Is this a concept that would work in our community?  

Learn more here.

"The future of every community lies in capturing the passion intelligence, imagination, and resources of its people."  
~ Dr. Ernesto Sirolli




NEW ECONOMIC DEVELOPMENT ORGANIZATION - RESHUFFLES THE CHAIRS?


Since the dismantling of the Tallahassee/Leon County Economic Development Council*, there has been much public discussion about what should replace it.  

As of the end of February 2016, an Intergovernmental Agency made up of Leon County and Tallahassee Commissioners, will form under the direction of County Administrator, Vince Long, and Tallahassee City Manager, Rick Fernandez.  

The purpose of the organization is to grow economic development in our area.  Since the new agency will be housed in the newly reorganized City/County Planning Department's section called P.L.A.C.E, it will most likely focus on the expenditure of over $90 million in Blueprint sales tax revenues.  Activities will be directed by Ben Pingree, the former executive director of the old EDC (Economic Development Council*).  




POVERTY RATES INCREASE IN TALLAHASSEE UNDER CURRENT CRA APPROACH


Currently, the Community Redevelopment Agency (CRA) operates under the 'trickle-down' methodology.  Residents have been told that building projects like the recently completed students housing in the Gaines Street area, on the fringe of the Greater Frenchtown/Southside CRA district, will benefit the residents of Frenchtown and the Southside.  Or the CRA does a land swap with Florida State University so that the University can proceed in developing the Civic Center Area--now referred to as 'the arena district.'  

How will these projects benefit those actually living in the areas designated as 'slum and blight?'  Because these projects will generate tax revenues back into the CRA district fund (thought tax increment financing).  "Then," the Mayor said more than once, "then, we'll have sufficient funding to do projects to improve the core areas in Frenchtown/Southside. 


The purpose of the Tallahassee CRA is to eliminate blight in the CRA designated areas of Tallahassee - Frenchtown/Southside and downtown.  

Yet, poverty continues to increase in Tallahassee:

  • Percentage of persons living below the poverty level in Tallahassee in 2011 was 29.4%, about twice the rate of poverty in both Florida and the U.S. 
  • Poverty rate in Tallahassee increased by over 19% from 2000 to 2011.  
  • Latest census estimates put the poverty rate for Tallahassee at 31.1%.  [2014]
  • Leon County poverty estimate is 23.3% [2014]                                                       [census.gov]

THE OLD MODEL FOR ECONOMIC DEVELOPMENT IN TALLAHASSEE/LEON COUNTY

The Tallahassee/Leon County Community Redevelopment Agency Board has consistently indicated it was in the business of "bricks and sticks."  Exceptions to this approach include the limited, small grants that support community festivals such as those funded in 2014:  the Sci-Fi Film Series, ArtiGras Festival, Living History Demonstration, and more.  

Little support has been given directly to the promotion of economic opportunity, retention and expansion of existing businesses, job creation and retention, and the recruitment of new businesses to encourage growth in areas experiencing insufficient economic growthAlthough “economic development” is not specifically defined in the Florida Statues, Chapter 163, the statute governing community redevelopment agencies, it suggests that it includes economic development as described above.  


Economic development can include tourism, mixed-use development, home building, creating infrastructure, acquiring real property, beautification efforts, commercial area revitalization, and transportation.


The tax increment funding from the CRA is one method to finance economic development and is not mutually exclusive to other methods. There are other funding sources available, which include bank community development corporations, federal and state tax credits and incentives, programs through the US Department of Housing and Urban Development such as Community Development Block Grant funding (CDBG), State Housing Initiatives Partnership (SHIP)HOME Investment Partnerships Program (HOME), Business Improvement Districts, state of Florida affordable housing programs such as State Apartment Incentive Loan program (SAIL) and others.  

THE OLD MODEL FOR ECONOMIC DEVELOPMENT IN TALLAHASSEE/LEON COUNTY:

In November 2012, the following list of resources was submitted at the Leon County Commercialization & Technology Transfer Stakeholder Forum identifying resources in Leon County in the following areas:  
  • Product Development 
  • Equipment 
  • Networking & Mentorship 
  • Legal, 
  • Marketing, 
  • IT, & Commercialization Assistance 
  • Business Admin. Training 
  • Workforce Training
The following entrepreneurial resources were identified:
  1. Florida Venture Forum
  2. Vision 2020
  3. Tallahassee Community College - AMTC
  4. Tallahassee Community College - Capitol Center
  5. SCORE at Tallahassee Community College
  6. FL Institute for Commercialization of Public Research
  7. EDC & Workforce Plus - Quick Response Training Program
  8. EDC - Entrepreneurial Excellence Program
  9. EDC - Industry Sector Roundtables
  10. FAMU Small Business Development Center - 1 on 1 Counseling
  11. FAMU Small Business Development Center - Business Mentoring
  12. FAMU Small Business Development Center - Resource Library
  13. FAMU Office of Technology Transfer
  14. FSU Office of IP Development & Commercialization
  15. FSU Research Foundation - GAP Program
  16. Jim Moran Institute for Global Entrepreneurship - General Services
  17. Jim Moran Institute for Global Entrepreneurship - InNOLEvation Accelerator
  18. Leon County Research and Development Authority/ Innovation Park - Incubator
  19. Leon County Research and Development Authority/ Innovation Park - Tech Grant
  20. Silicon Tally
  21. Startup Round
  22. Summit East
  23. TalTech Alliance
  24. Tallahassee Business Resources
  25. Making Awesome (formerly Tallahassee Fab Lab)
Add the business incubator, Domi Station, to this list.  The creation that emerged from this forum.



ECONOMIC DEVELOPMENT HAS MISSED ITS MARK, ESPECIALLY IN POOR COMMUNITIES

In an January 2016 article in the Tallahassee Democrat, the Mayor comments on
the area's "pretty pitiful" track record of attracting new businesses, Mayor Andrew Gillum suggests splitting the area's two largest business-advocate organizations — the Economic Development Council of Tallahassee/Leon County and the Greater Tallahassee Chamber of Commerce.
To set clearer economic development goals, Gillum told the Tallahassee Democrat editorial board on Thursday, there needs to be a change.
While the City leans on the investments made by the Danfoss Turbocore operation in Innovation Park, it seems that other achievements have been sparse. Yes, there has been a recent growth in businesses locating in the Tallahassee region, retail and restaurants comprise the majority of this growth. These establishments bring minimum wage jobs to area, with a few managerial positions. To date, no impact has been made to the rate of unemployment in Tallahassee's southside neighborhoods.

A year ago, this author brought to light the City of Tallahassee's economic segregation and lack of vital economic development accomplishments.

“The capital of the quality of life” does not acknowledge the extreme poverty located primarily in the Frenchtown and Southside neighborhoods. To get an idea, one has to get off the main streets. In Frenchtown, Brevard Street was a hub of the black business community during segregation, and looks pretty good today. To see the conditions where people live, you need to walk or drive along the streets without sidewalks, the “D” streets, Dade, Dent, Dewey, etc. South City looks even worse. Yes, we have ghettos in Tallahassee.

There are at least two separate Tallahassee’s.