Creating a “Nutrient-Rich” Business Environment in Rural Communities
By Sheila Finkenbinder , Workforce Development Center/Sitka Business Incubator Project, Alaska
Rural communities across America are struggling to survive in the face of a changing national economy. Depending on the location, painful changes have come about as resource-based industries such as logging, fishing, and mining have closed down and small family farms have given way to agra-businesses. The result is a diverse range of rural communities that are suffering from either a high rate of unemployment or a significant loss of population, especially working-age adults with growing families. Dealing with these set-backs and maintaining viable and vibrant communities has become a priority issue for those of us living in these rural, often isolated, towns and villages.
Often the knee-jerk reaction in many communities is a massive recruitment effort based on the belief that city planners need only attract new industries to locate, or relocate, to their town. Major marketing campaigns are conducted on the premise that there are business owners in other locations who will see the value in establishing their existing or planned business in a town that is no longer the vibrant place it once was.
But, guess what? While city fathers are attempting to recruit big businesses to relocate to their town, the very people who have what it takes to start and operate local enterprises are already there. Every community already has people with ideas and the abilities to start small businesses. True economic development comes from capturing the energy, imagination, intelligence, and passion of these people. In the last fifteen to twenty years, small individual enterprises have created the majority of new jobs in this economy. Many of the people who are creating those enterprises have been living in small communities for years, have families, and have no plans to leave.
Nurturing Businesses
So, how do you help these people—your neighbors—to start the businesses that will revitalize your town? You do it by acting as a gardener, by building an environment that is so rich in the ingredients necessary for business growth that once the seeds are sown businesses will seemingly spring up out of nowhere.
I like to compare the capacity for business growth and development in a community to the carrying capacity of wildlife species in the natural areas that surround us. When management officials want to increase the numbers of a certain species of animal in an area, there is only one way to accomplish the task. And that is to improve the quality of the habitat where the animals live, including their food, water, shelter, space, and the way it is all arranged. Clean out the streams; thin out the forest; plant more trees; do whatever it takes to encourage more births, longer and healthier lives, and the resulting growth in the wildlife population.
The Sitka Business Incubator Project (SBI) has been operating for two years now, with a mission of accelerating the growth and development of small and emerging businesses in Sitka, Alaska. Those of us who have been working on the project don’t have business degrees, but we do have confidence that the people in this community have what it takes to build and operate businesses that will strengthen our local economy, if they are provided with the necessary nourishment and encouragement. Here are some of the things we’ve been offering to help enrich the environment and make it easier for budding entrepreneurs to take the first steps:
- Professional office/meeting space available
to all SBI members, including:
- computers with internet access,
- workspace,
- copier,
- scanner,
- phones and fax,
- tables and chairs,
- TV/VCR,
- overhead projector,
- flip charts and white board.
- Education on topics essential to business growth, through workshops led by staff, local business people, and outside experts. Almost 100% of the people who have conducted our workshops have done so on a purely volunteer basis.
- Training for small and emerging entrepreneurs in the essential steps to planning, starting and operating a small business through extended (8-10 week) classes based on recognized small business materials. (We have used both the FastTrac™ curriculum and the New American Business System.)
- Access to the services of the Juneau Small Business Development Center and the Alaska Manufacturers Association (located in Anchorage). We coordinate with the directors of these organizations so that they can come to Sitka periodically to conduct workshops and/or one-on-one counseling sessions.
- Access to a group of local service providers who are interested in helping to build a nutrient-rich environment for small business development in Sitka, and who provide training, consulting, and/or reduced rates for their services. Our Business Resource Guide lists all the service providers in our community, along with a description of the focus of their services.
- Help with feasibility studies and/or business plans. Clients can choose the level of complexity of their plan and the level of help they would like to receive.
- Opportunities for SBI members and other entrepreneurs to network with each other in order to share their ideas, questions, and expertise.
- Opportunities to sell locally manufactured products through a professionally run trade show that is open to both wholesale and retail buyers from Sitka and surrounding communities.
- An informational website, offering locally relevant small business information and links to a broader universe of small business resources. Our site includes a Checklist for Starting a Business in Sitka, which is also available on paper for walk-ins.
- A clearinghouse for information and
ideas pertaining to small business development in Sitka. The public
can come in anytime to receive any of the following services:
- Business advice
- Paperwork (applications for business license, sales tax, EIN, etc)
- Hands-on help with business cards, invoices, etc. (some fees involved)
- Referrals to outside experts (attorneys, accountants, etc.)
- Reality checks
RESEED
Part of what has helped us reach out to all members of the community has been the training we’ve received from Cary Griffin and David Hammis, of the Rural Institute at the University of Montana. For the past year, Sitka has been part of a project called Rural Entrepreneurship and Self-Employment Expansion Design (RESEED), which brought Cary and David here five times for extensive workshops and hands-on technical assistance with real clients. What we learned from their training has helped us understand that many people with disabilities in Sitka are in possession of untapped talents and energy, and that we can be helping them find meaningful employment.
As we come to a greater understanding of the tools that are available for supported employment and self-employment, we will be greatly expanding the types of services we’re able to offer. We are convinced that for many people, even those who may not be seen as “entrepreneurs,” self-employment is a viable option that can help them achieve a level of self-sufficiency that would otherwise not be possible.
The economic benefits of our efforts at building a nutrient-rich business environment in Sitka have included twenty-four (24) new full-time equivalent jobs created by member businesses during our first year of operation. The number of non-members who have also benefitted from our gardening/nurturing technique far surpasses the few who have become SBI members. The Sitka Business Incubator Project is becoming an important local source for business advice, information, resources, referrals, education, training, and networking.
Sitka’s history reveals a long-term dependence on natural resources, all the way back to when it was the capital of Russian America. As part of the country’s “last frontier,” it is experiencing the pains that come from change, moving from a resource-based economy to one that is more diverse. Every area of the country has its own history, its own problems and its own strengths. The talents and capabilities for rebuilding local communities may be hidden from view, but as the essential nutrients are introduced into the environment the dreams of local individuals can become viable, healthy enterprises. Business Incubators, Small Business Development Centers, or other economic development organizations in rural communities can, through a little coordination of effort and the right attitude, build “nutrient-rich” business environments that will strengthen and diversify their region’s economy during difficult times.
Contact Information
Sheila Finkenbinder, Director
Workforce Development Center/Sitka Business Incubator Project
303 Lincoln St., Ste., Sitka, AK 99835
(907) 966-3066
work@alaska.com