Edward Lowe Foundation

Information — the new currency of economic development

Economic gardening represents a new way of supporting growth companies and letting business owners know how important they are to their local economies. Instead of offering traditional incentives like tax credits or real estate discounts, economic gardening programs enable entrepreneur support organizations (ESOs) and economic development organizations (EDOs) to offer something that can be even more valuable to local CEOs: strategic information that’s customized for his or her company.

To do this, teams of skilled researchers mine sophisticated databases and use high-end tools related to search engine optimization, geographic information systems and social media marketing. Some examples of their assistance include:

• Identifying and prioritizing sales leads and business opportunities.
• Refining companies’ core strategies and business models.
• Using social media to connect with customers and create buzz about products or services.

Like all foundation programs, our economic gardening initiative is designed with the second-stage business in mind. Our virtual model enables time-crunched CEOs to participate in an economic gardening network without leaving their offices.

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Economic gardening has powerful and far-reaching payoffs.

By helping companies identify and pursue new opportunities, economic gardening increases demand for their products and services — which, in turn, stimulates job creation. In fact, research conducted by Tucker Hall shows companies that participated in Florida’s economic gardening pilot program each created an average of 5.2 new jobs within the first 18 months of the program.

“Local businesses tend to have greater commitment to their regions than companies with out-of-state headquarters — and the most impact on sustainable job creation,” points out Mark Lange, the foundation’s executive director. “If they grow, the whole community benefits.”

There are also some surprising benefits for economic development organizations (EDOs) and entrepreneur support organizations (ESOs):

• Greater trust. By referring local companies into an economic gardening program, EDOs and ESOs build trust because they’re introducing CEOs to a service they can’t get anywhere else.
• Increased effectiveness. EDOs and ESOs that participate in an economic gardening network learn more about each other, which enables groups to avoid duplication of services, refine core strengths and refer clients to other groups when appropriate.
• Identifying new clients or working with them at an earlier stage. EDOs and ESOs often work with either startups or very large companies and act as conveners by connecting them with regulatory entities, government programs and international trade initiatives. Economic gardening enables support organizations to get involved with existing businesses earlier — and be active participants in their growth.

Bottom line, economic gardening helps establish an entrepreneurial culture within communities that is critical to regional growth!

In partnership with Chris Gibbons, who originated the concept of economic gardening, the foundation hosts the National Center for Economic Gardening (NCEG). This center helps economic gardening networks get off the ground quickly through its national research team and Greenhouse Software System (GSS). A proprietary system that provides a secure space for online collaboration, GSS also makes it a snap to track program participants and handle administrative issues.

How it works: After qualifying companies are selected as participants, a team of research specialists are assigned to work with them. The team’s first step is to interview CEOs and pinpoint their specific growth issues. This interview process is important because often a company’s real obstacle to growth may be masked by another issue. The research team then devotes a certain number of hours to each company over the course of a few weeks to gather and deliver action-oriented information.

Because their funding sources and goals vary, no two networks are exactly alike. For example, some provide services to companies in a specific geographic region while others are statewide. Some networks continue to use NCEG’s national research team after concluding their pilot program while others build their own team of research specialists or choose a hybrid option. NCEG works closely with networks to maximize their resources and ensure desired outcomes are achieved. The center also provides certification and training to make sure program participants are maintaining national standards.

For more information about starting an economic gardening network, contact Jessica Nelson.