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Craig_smith_pic Seven Ways to Boost Rural Economies

No matter where we are on the political spectrum or where we live, we have all been affected by the global recession. When it comes to the cause, some believe it’s the banks, others believe it's Wall Street, while some believe the government and individuals are living beyond their means. Regardless of the cause, many feel there is nothing they can do. At Rural Development Initiatives we help rural communities act locally to create economic vitality.

The first step for creating economic vitality is developing a community vision and a plan. You won’t have agreement on the best priorities to pursue without completing a planning process. To create a plan, RDI works with community leaders to convene a diverse group of individuals. During the planning process participants identify and build upon assets; what the community has already rather than trying to bring something in from the outside. Also, it is crucial to diversify your economic development strategies. Don’t put your eggs in one basket. And the plan should focus on community development as part of economic vitality—you can’t have a healthy economy if your community is lacking in community basics.
 
RDI has been guiding communities in this process for over 20 years and has worked with over 300 communities. Our experience has lead to our belief in and commitment to the following seven best practices for creating economic vitality. After a thoughtful planning process described above, any of these ideas that fit with your community can be implemented in any order and one does not depend on another. However, in our view, the most successful communities have implemented several best practices.

Creating Networks to Support Entrepreneurs and Micro Business Development

Economic development is most successful when you do not put all your eggs in one basket or invest money and hopes in one large employer. Communities are most resilient when there are many small and micro businesses. If one or several do not survive, there are still employment opportunities. These businesses will continue to contribute to the local economy in contrast to one major employer closing. To support entrepreneurs, some communities have entrepreneurial gatherings like pub talks to share resources and ideas. Other communities make sure their existing networks, like the chamber or business association, support all the businesses in town including the micro enterprise and entrepreneurs. Other communities build an Entrepreneurial Development System (EDS) forming a local advisory committee of stakeholders including economic development districts, councils of governments and other resource providers to develop programs and support services for entrepreneurs. Several of these practices outlined below can be part of an EDS. 


Thinking Local – Supporting Local Businesses First

Our local businesses cannot survive if we do not support them. When you support local businesses first your money stays in the local economy longer. It circulates throughout your community by creating jobs and increasing income.  A healthy community has a strong “Think Local First” economy. Several of RDI’s partners in Connecting Oregon for Rural Entrepreneurship (CORE) Program have implemented successful “Think Local First” programs like Buy Local Lincoln County and Think Local Umpqua.


Retaining and Growing Local Businesses

It is always easier and more cost effective to retain a business already in your community rather than recruiting a new business from outside. Utilizing an existing organization like a chamber, business association or starting a Business Assistance Team (BAT) is a good way to retain or expand local businesses and the best resource for creating local jobs. A business retention and expansion program or a BAT utilizes local volunteers to connect businesses to resources that can help with planning, marketing, financing, and other needs required for entrepreneurial success. RDI can connect you to resources for small businesses and help your community develop a Business Assistance Team.


Helping Start New Businesses in Your Community

Every community has people with great ideas but they often lack the resources and training to get a business started. Connecting these individuals to resources or programs is a great way to grow your local economy by helping entrepreneurs start home-based businesses. They will sell products or crafts and provide services that create jobs and support the local economy. RDI offers a program called Steps to Success – Starting a Business @ Home. This is an asset-based entrepreneurial development program that assists home-based businesses in rural communities. Offered in Spanish and English, RDI provides 30 hours of training, networking, and access to statewide support systems.


Implementing a Downtown Revitalization Program

A healthy and vibrant downtown boosts the economic health and quality of life in a community. Specifically, a healthy downtown creates jobs, incubates small businesses, reduces sprawl, retains a community’s heritage, and is a symbol of community pride and history. There are many approaches to Downtown Revitalization, including the Main Street Approach which was developed by the National Trust for Historic Preservation and focuses on four areas: organization, promotion, design, and economic restructuring.

Most rural Northwest communities expanded from a historic, small downtown core. In many towns, Main Street is still the heart and soul of the community. Many chambers of commerce, cities, and community development corporations have a downtown revitalization program. If your community does not offer one, RDI can help get you started through planning and organization.


Organizing Farmers Markets and Community Supported Agriculture (CSA’s)

A farmers market provides residents with fresh local products as opposed to many of the products offered at traditional supermarkets. Supporting local farmers ensures you know what you are buying and where it comes from and keeps money in your community (Think Local First). Farmers markets help us focus on seasonal eating rather than buying fresh blueberries in December from somewhere in South America. This helps conserve fossil fuels and reduce carbon emissions. Many farmers markets have become large community events, where families come out, enjoy food from local vendors, and listen to live entertainment which also helps build social capital.

Another way to get products directly from your local farmers is through CSA. Over the last 20 years, CSA has become a popular way for consumers to buy local, fresh seasonal food. Through a CSA, a farmer typically offers a certain number of "shares" to the public. Interested consumers purchase a share (aka a "membership" or a "subscription") and in return receive a box (bag, basket) of seasonal produce delivered each week throughout the farming season. If you have a farmers market or CSA in your community, please support it. If not, there are resources available to start one.


Developing Visitor Amenities – Rural Tourism and GeoTourism

The travel industry is a significant contributor to rural communities throughout Oregon. Based on data from Travel Oregon and research by Dean Runyan and Associates, tourism employs the most number of people and ranks fourth for the level of earnings. It brings in twice as much income in our state’s rural areas as compared with urban areas. Many of the tourism businesses in Oregon are sole-proprietors, which builds a strong case that the tourism industry supports entrepreneurs.

Geotourism sustains or enhances the geographical character of a place – its environment, heritage, and the well-being of its residents. Rural tourism promotes responsible travel by providing visitor services and attractions that generate local revenue while preserving cultural heritage and natural amenities.


Remember, economic vitality takes time. If you implement one or all of these best practices, you most likely won’t see results overnight. Many are a shift in our cultural thinking, and it takes time and commitment from community leaders, citizens, volunteers, and businesses to see many of these best practices take hold and become part of the community fabric. Is your community utilizing any of these practices already? Let us know by commenting below!



See all posts by Craig Smith.

4
COMMENTS
Joanne Steele says
07.16.10 // 12:24 PM
Great post Craig! Small towns run on volunteer energy, and it's an effective way to function, with the assistance of outside organizations like RDI for support and a strong base of knowledge on rural issues. We in Dunsmuir, CA have an active revitalization team working hard to bring back our downtown historic district. Check out our new website, http://ComeHometoDunsmuir.com. Thanks for the encouraging words!
Craig A Smith says
07.16.10 // 03:22 PM
You are doing great work Joanne. We learned the importance of a vibrant downtown for economic development and tourism 18 years ago working with Sweet Home Oregon. Sweet Home was hit hard by the downturn in the timber industry and mills and the support businesses for the timber industry were closing along with downtown businesses. With lots of vacated industrial space, two large employers were looking to relocate in Sweet Home. Both decided not to because of the “run down” appearance of the community. They said they “were not into investing in a community that was not investing in itself.” That was a great wake up call to the community and one of the first projects completed from their strategic planning process RDI facilitated was downtown improvements including repainting storefronts, putting displays in empty windows, planting in medians, flower baskets and new entry portals and signs. Sweet Home has been soaring forward ever since.
Bill Mintiens says
07.29.10 // 07:31 AM
Excellent article Craig! Sisters Oregon has worked with RDI but still has a ways to go with implementing the best practices outlined in your article.
Alison Cassin says
08.12.10 // 08:52 AM
Great examples! Does anyone else have any best practices or examples of what has worked in your community? We'd love to hear your ideas!

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