Best Practices Promoting Economic Vitality

June, 28, 2011

Brenda SwartzSchool of Business

IU Southeast

Capitalizing Upon Strengths

• Interstate connections– I-65, I-64, I-71• UPS Hub• Ohio River -- Clark Maritime Center• Crane Naval Base, Camp Atterbury, Muscatatuck

Urban Training Center, Ft. Knox• Multi-county, 2 state region -- U.S. State Dept sends visitors—cross border

issues• Metropolitan and Rural locations

Economic Diversity

• Products – Biscuits, Bibles, and Barges• Firms adapt to change—products and

business model• Workforce adapts to change -- develop basket

of transferrable skills• Continuous upgrading of skills and technology• Education and Training critical to area

development

Purdue’s College of Technology

• Collaborative programs with IU Southeast• Offer 5 Engineering Technology programs• Applied engineers design, test and produce

newest high technology products• 85% of graduates stay in this community• Encourages/supports growth of area firms and

contributes to attracting new firms

IU Southeast• Established as an extension in 1941• Moved to Grant Line location in 1973• Offers an array of bachelor’s programs plus

graduate programs• --Graduate Business programs began 1991-92 Now has 240+ students. Graduates stay in the community. Residence halls opened in 2008; house 400

students; close to full occupancy - Exploring seminars/summer programs

Best Practices Fostered by Businesses, Organizations and

Community Groups• School of Business CEO Roundtable on campus• CEO/Manager Roundtable—Scottsburg, Madison,

French Lick, Seymour• HelpNet Program –Faculty work with an area

business—limited project over 4-6 months• Sanders Speaker Series—national speakers• Management Development

• Southern Indiana Rural Development Project- area south of I-70; 39 counties.-address issues common in rural southern IN Scope sewers, disposing of used fire

equipment. New Albany Urban Enterprise Zone—partners

with community groups. Southern Indiana Minority Enterprises

Initiative

Entrepreneur Support

• Venture Club—entrepreneurs and people interested in funding them get together

• Angel Advocates—created venue for high tech start-ups to present to qualified potential investors

• INnovation Angels—Purdue Technology Park Start up, High Tech firms roll out business

plans to potential investors

• Limited number of IUS Graduate business students invited to hear presentations

• Exploring needs of potential investors -- Graduate students help investors with firm

due diligence? -- Faculty discuss a topic with potential

investors?Purdue Technology Research Park—currently

full

Mid-America Science Park• Company left, City of Scottsburg bought the

property—112,000 sq ft on 63 acres• 36 wet/dry labs with flex space; 100 meg of

fiber—more if needed• 120 seat auditorium + 5 conference rooms

with video/phone conference equipment for education or product demonstration

• Scientific Compartmentalized Information Facility (SCIF)

• Rapid Prototype Equipment—3-D Plastic Printer, Mach 3 Water jet

Support of Entrepreneurs--cont

• School of Business Entrepreneur Workshops –non-credit - multiple funding sources, on campus, off site locations - start-ups, expanding businesses, minority contractors,

non-profits• Curriculum expand to include classes in

Entrepreneurship

• OCRA Programs—SWOT • Youth/Adult Mentor Entrepreneur Program -- Summer program -- Ages 13-19, examine their strengths,

develop a business plan around their strengths—identify skills, build self-esteem

-- Work with selected mentors -- Cross section of the community -- Youth develop a short business plan

Optimizing Youth Potential• Clark County – Early Childhood Reading

Program—multi-year commitment of volunteers

• Increasing high school graduation rates --Harrison County program --Scott County—increased graduation rates

from 58% to 72% --Drop Out Prevention Task Force -- Experiential High School . Noah’s Ark—first time foster care

Floyd County Youth Count

• Promotes building 40 Developmental Assets in youth—building blocks for healthy development (Search Institute)

• Youth with Assets less likely to have negative behaviors

• Increase in self-reported asset numbers• Applicable in business environment

External Assets• Support—family, community, and school care about

young person, supportive adults• Empowerment – youth perceived as valued by

community, feels safe, given useful roles• Boundaries and Expectations—family, schools,

community, positive role models• Constructive Use of Time—Creative activities, youth

programs, quality time at home •

Internal Assets• Commitment to Learning– engaged in school,

motivated to achieve, read for pleasure• Positive Values – caring for others, integrity,

honesty, responsibility, restraint• Social Competencies – plan and make choices,

interpersonal skills, resist peer pressure, conflict resolution, comfortable with people of different backgrounds

• Positive Identity – self-esteem, sense of purpose, optimistic about personal future

• Community cares about its youth• Crusade for Children--$5.3 million raised for

special needs children - Volunteer firefighters compete to raise

money for children. Unique program

Collaborative • Scott County Partnership--Businesses,

Educators, Elected Officials, and Faith Based Community

-- Address issues and capitalize on opportunities. Clearinghouse – assist families in need Food, clothing, household items, and money• Circles Program—Bridges out of Poverty --mentors and positive role models

• Lunch Buddies– provide adult mentor• Community volunteers -- after school math

and science tutoring

• Personal Ethics—mayor took office, divested himself of potential conflicts of interest

--U.S. State Dept visitors from former communist countries had difficulty grasping this.

Domestic & Global Market

• Get to know potential suppliers/partners/ customers

- Utilize business organizations, trade shows, community connections and civic groups

• Weak U.S. dollar becomes export opportunity• Assistance from U.S. Dept Commerce, Ex-Im

Bank, State of Indiana, IU Southeast, SBDC• Craft arrangements beneficial to both parties

• Use of AmeriCorps program – staff programs and provide high education opportunities for participants

• Computer classes, GED program, technical training programs

• Advanced Manufacturing & Green Energy training facility

• Personal ethics—public official avoiding potential conflict of interest

• Idemitsu Lubricants—100% Japanese owned --Incoming Foreign Direct Investment• 140+ firms in Indiana are at least 10%

Japanese owned• Hire Indiana workers• Pay Indiana and Federal taxes• With weak U.S. dollar firms often do not take

profits back to Japan

• IN positioned for incoming Foreign Direct Investment

Problems and Resolutions• Long term contract product price not consider

price of a base metal; price of base metal increased; firm continued to supply product; customer suggest adjustment of product price.

• NAFTA Documentation• Changing EPA Regulations--electroplating • Food Industry HAACP requirements• Traffic accident involving damage of goods—

CEO’s knew each other, issues resolved

Compete, Cooperate, Collaborate• Competition—healthy, occasionally painful - base on feature other than price• Cooperate—organizations and programs

facilitate understanding (CEO Roundtable, One SI, Chambers, GLI)

• Collaborate—outsourcing Maintenance work • Clusters of industry groups—automotive,

wood products

By-Products of Collaboration in Exporting to Japan

• Increased trust level—shared container load• Source from one another• Enrolled 5 year old son in Japanese language

program• Some adapt products for Japanese market• Learn Japanese culture by hosting Japanese

students• Long term business relations and friendships

Cultural Issues/Opportunities• One community issued parade permits for VJ

Day and for Cherry Blossom Festival • IUS Cultural Center—”Saturday School,” work

with Crane House—pan Asian Cultural group - U.S. State Dept--Chinese language class for junior and senior high school students• Culture Kits—teaching aids for K-12 teachers,

housed in IUS Library• Host U.S. State Dept visitors—many become

leaders in their countries

Economic/Financial Literacy• Concern over “survival skills”• School of Business, School of Education, a

local bank, New Albany Floyd County Library, and Jeffersonville Library

- Econ/Fin component for summer K-12 reading program

- 250 participate in Floyd Co; 200 participate in Clark Co.

• Program continues. Exploring Scott and Harrison opportunities

• Junior Achievement - Sam Swope JA Biz Town – 5th graders - 1st year one firm paid for all Floyd Co 5th

graders to attend - Chase JA Finance Park – 8th graders. “Reality Store”. Economic Education workshop for teachers of

K-12 --age appropriate materials

• Immigrants - IUS program to welcome New Neighbors in

the community - English language programs - Firms have signage in Korean/Spanish/English - IUS Mentoring program; Community groups. Helping Hand—After Katrina IN town

“adopted” a small, hard hit town

Health Issues• Low health literacy may account for 5% of

health care costs annual annually (JAMA, April 2011)

• Hospital in Seymour doing community education in Scottsburg

• School of Nursing combating obesity—youth and adults

- Immunization and safety in rural areas• New insurance programs—member

participation in preventive measures

Grass Root Approach to Indigent Health Care

• Tri-County Health Coalition, IU Southeast, and W. K. Kellogg Foundation

• Address minority and indigent health care needs

• Education, Early Intervention, Treatment, and Follow-up

• Win/Win Floyd Memorial Hospital expansion included provision for indigent, JCHC applaud use of ER, indigent have place to receive services

• 20 years later Tri-County Health Coalition still a grass roots organization with no paid staff

• Operates with a myriad of small grants• Food bank, close closet, conflict resolution,

Federal and State tax preparation, blood pressure, pet food

• Knowledge Office of W. K. Kellogg Foundation--amazed

Recreation and Entertainment

• Paul W. Ogle Cultural and Community Center at IUS - serves 36,000 people annually (K-12 students,

adults, Children’s Series) - variety of artistic expressions and cultures - venue for political discussions, international visitors - provide free tickets to indigent groups

• l

• Derby Dinner Playhouse, Cinemas, Community Theatre

• High school theatre performances• School and Community sports programs for

youth• YMCA of Southern Indiana—2 locations, many

programs

Best Practices• Examine community traits that foster and

encourage practices we have discussed• 40 Developmental Assets with an adult twist• Need succession planning—corporate and civic• Explore other communities; bring home the

best• Property Rights & Rule of Law

And in the Future

• We want to be able to take down this…

… and put up this