Business and Economic

Research
Monica Haynes, Director
Bureau of Business and Economic Research
Community Development
Strategies
• Framework for Community and Economic Development
• Pulver Approach
• Richardson’s Key Principles
• Shaffer Approach
• Identifying Resources

Source: U.S. Bureau of Economic Analysis

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Community Development
Strategies
1. What is a key issue or finding from the survey results? (Could be an
opportunity, strength, weakness, or threat)
2. What data from the survey results shows the nature of this finding? (List
question number(s) and give short explanation of connection)
3. Where does this survey finding fall on the Flora Community Capitals
Paradigm? On the Shaffer Star?
4. How might the community address the issue outlined in questions 1 and 2?
5. What resources should the community use as part of their strategy in
question 3? (be as specific as possible)

Source: U.S. Bureau of Economic Analysis

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 Framework for CED

Source: Steven Deller, https://aae.wisc.edu/ced/

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 Framework for CED
Use community and
survey data to
determine the situation

Source: Steven Deller, https://aae.wisc.edu/ced/

50
 Framework for CED

Community Strengths
Comm Dev Resource
List (word doc)

Source: Steven Deller, https://aae.wisc.edu/ced/

50
 Framework for CED

This is your
recommendation / idea

Source: Steven Deller, https://aae.wisc.edu/ced/

50
 Framework for CED

What are the intended

effects of the activity or
recommendation?
Source: Steven Deller, https://aae.wisc.edu/ced/

50
 Pulver Approach

• Attract new basic employers

• Improve efficiency of existing firms
• Improve ability to capture dollars
• Encourage new business formation
• Increase aids/transfers received from broader
governmental levels or units

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Richardson’s Key Principles
• Empower community members
• Strengthen democracy
• Encourage women to be key leaders
• Involve children and adolescents
• Encourage systems thinking
• Encourage innovation
• Foster rural and urban linkages
Source: U.S. Bureau of Economic Analysis

47
 Shaffer Approach

• Increasing the flow of dollars into the community

• Increasing the re-circulation of dollars in the community
• Increasing the amount of resources available
• Using existing resources differently
• Changing the rules
• Acting smarter

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Shaffer Approach
Increasing Flow of Dollars into Community
Community is Injecting New Money into Local Economy:
• Attracting new employers
• Encouraging existing employers to increase sales outside
community
• Increasing visitors to community
• Increasing inter-governmental aids

Source: U.S. Bureau of Economic Analysis

47
Shaffer Approach
Increasing Flow of Dollars into Community
Possible objectives / recommendations:
• Develop industrial sites, public services, and potential
employee information
• Develop community and regional facilities to attract new
employers (transportation, recreation, communication, etc)
• Expand purchases by nonlocal people through advertising
and promotions
• Ensure key public services are more than satisfactory
• Recognizing role of transfers (retirement benefits,
unemployment compensation) as flow of fundsSource: U.S. Bureau of Economic Analysis

47
Shaffer Approach
Increasing Circulation of Dollars in Community
Means the community is plugging leakages out of the local
economy:
• Seeking ways to get people and businesses to spend
locally
• Could be altering store hours, encouraging new/different
store types, talking to businesses about buying local inputs
• End result is dollars re-circulate more locally

Source: U.S. Bureau of Economic Analysis

47
Shaffer Approach
Increasing Circulation of Dollars in Community
Possible objectives / recommendations:
• Consumer needs survey
• Improve retail experience (parking, store hours,
merchandise)
• Employee training programs
• Buy local campaigns
• Chamber of Commerce / Merchant Association
• Downtown beautification
• Supply chain analysis (identify gaps/disconnects)
Source: U.S. Bureau of Economic Analysis

47
Shaffer Approach
Increasing Amount of Resources Available
Community increases amount of labor and capital available
for producing output:
• Availability of loans (local financial institutions, credit
unions)
• More people moving to community or working more hours
• Partnerships with local colleges and universities

Source: U.S. Bureau of Economic Analysis

47
Shaffer Approach
Increasing Amount of Resources Available
Possible objectives / recommendations:
• Organizing community capital resources (formation of
capital groups, public financing programs, bank loans)
• Training programs for youth, in-migrants, and residents
• Encourage in-migration through quality of life measures
• Consider incentives / services for start-up businesses
• Encourage entrepreneurship (SBA, recognition)

Source: U.S. Bureau of Economic Analysis

47
Shaffer Approach
Using Existing Resources Differently
Applying new technologies
• Combining existing capital to produce greater output per
worker
• Producing new goods or services locally
• More local jobs for workers who previously commuted
• Training / education

Source: U.S. Bureau of Economic Analysis

47
Shaffer Approach
Using Existing Resources Differently
Possible objectives / recommendations:
• Strengthen management capacities of existing firms
(trainings, education)
• Encourage business growth through loan/capital sources
• Training programs for workers
• Develop programs to help people reenter workforce
• Improve local business efficiency (transportation, services,
communications)
Source: U.S. Bureau of Economic Analysis

47
Shaffer Approach
Changing the Rules
Change in rules that benefit community or change in
interpretation of rules
• Land use plan
• Eligibility rules for workforce training programs
• Local public policy

Source: U.S. Bureau of Economic Analysis

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Shaffer Approach
Changing the Rules
Possible objectives / recommendations:
• Public assistance for those who cannot work
• Fair treatment of community concerns by broader
governmental units
• Review how retirees and handicapped people might
access services
• Minimize regulations and regulatory barriers

Source: U.S. Bureau of Economic Analysis

47
Shaffer Approach
Acting Smarter
How the community goes about making decisions:
• Does it involve a broad spectrum of interests?
• Does it really get at the problem or just treat symptoms?
• Does it integrate sound analysis with community
perspectives?

Source: U.S. Bureau of Economic Analysis

47
Shaffer Approach
Acting Smarter
Possible objectives / recommendations:
• Identify market potential for new businesses
• Provide services for entrepreneurs
• Utilize aids from broader government whenever possible
• Ensure quality of local school systems
• Stimulate entrepreneurial thinking and action
• Organize business networking / appreciation events
• Identify (through research) desired types of employers
Source: U.S. Bureau of Economic Analysis

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Questions?

Monica Haynes
Director
Bureau of Business and Economic Research
11 East Superior Street, Suite 210
Duluth, MN 55802
218-726-7895

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