Economic development
has taken on an
increased awareness in
these trying times. The
term seems ubiquitous
in newspapers, on TV,
the Internet and all other
media. It has become a
top priority for communities
and job creation has
emerged as an important
responsibility for public
officials.
There
are four
general approaches
to stimulating
economic
growth: the
attraction,
retention,
formation and expansion
of new or existing
companies.
In order to achieve
these goals, it is necessary
to implement
comprehensive and
inclusive strategies that
address the needs of this
growth, including access
to capital, workforce
development, housing,
transportation, regulatory
policies, physical
infrastructure and quality
of life. Hence, there
must be a multifaceted
approach to stimulating
development and economic
growth.
The Otsego County
Economic Development
Agencies, which, in addition
to the county department,
also includes
the County of Otsego
Industrial Development
Agency and the Otsego
County Development
Corp., has focused its
attention and resources
toward the formation and
expansion of small, local
businesses.
It is recognized that
the birth of new firms
and the expansion of
younger firms are a
significant source of job
growth, experience faster
growth in sales, are more
flexible, incorporate
technological innovations
and provide for economic
diversity.
Furthermore, homegrown
and locally owned
companies tend to play
important roles in community
affairs, profits
from these companies
remain in the community,
and local firms provide
more stability because of
a greater willingness to
“ride it out” than close
their doors.
The process of starting
a business is as
unique as the business
owners themselves and
the environments and
markets they respond to.
However, it is safe to say
that almost all new or
growing businesses face
the same difficulties and
barriers to development.
They are short of capital
and they have needs for
managerial and technical
support.
People starting new
ventures find it difficult
to obtain sufficient
start-up capital through
debt or equity financing.
Because of the inherent
risks involved in new
business formation, most
financial institutions are
reluctant to invest in new
enterprises.
Although our local
banks are strong, the
current economic climate
has exacerbated this hurdle.
In an effort to bridge
the gap and provide new
or growing businesses
with sufficient capital,
the Otsego County
Economic Development
entities have low-interest
loan programs for qualified
businesses.
By partnering with traditional
funding vehicles,
the Economic Development
office helps these
companies secure working
capital, research and
development, inventory
and equipment funds.
Since 2003, the Economic
Development partners
have lent more than $3
million to local businesses,
while leveraging
more than $15 million in
debt and equity financing
for start-up or expansion
purposes. Furthermore, a
dedicated loan program
was developed specifically
to assist businesses
with five or fewer employees.
The second significant
cause for small-business
stress or failure is lack of
managerial and/or technical
expertise. This lack
of expertise can range
from the development of
a marketable business
plan to identification of
appropriate resources,
personnel issues, accounting
practices, manufacturing
processes and
strategic planning.
Our office works with
businesses to identify
and resolve these immediate
and ongoing needs.
To best facilitate assistance,
we often partner
with other organizations
to utilize additional
resources.
These partners
include chambers of commerce,
the Service Corps
Of Retired Executives,
the Alliance for Manufacturing
and Technology
and the Center for
Agricultural Development
and Entrepreneurship
Inc. Beginning April
28, our office and the
State University College
at Oneonta Center for
Community and Economic
Development will
partner with Executive
Service Corps to offer
a free “How to Operate
a Successful Business
Venture” workshop.
This six-week course is
designed to facilitate
business-plan development
and address many
issues new and young
companies face.
We have also recently
developed a local products
questionnaire.
Results from this questionnaire
will be used to
populate a “local products
guide” and help us
tailor future programs
for businesses developing
and manufacturing
products in the County.
The Otsego County
Economic Development
agencies are committed
to fostering new business
development and expansion
in our area. We
believe these enterprises
are the key to generating
economic growth, job creation
and technological
innovation.
Yet we also know that
in these challenging
times, economic development
should be recognized
as an interconnected
web of community
stakeholders, business
managers, nonprofits and
governmental entities.
If you have any questions
about our programs
or would like to
participate in the local
products survey or Small
Business Development
Class, please contact our
office at 432-8871; e-mail
lewisc@otsegocounty.
com; or visit www.otsego
economicdevelopment.
com.
To write for “My turn,”
contact Daily Star Publisher
Tanya Shalor at
tshalor@thedailystar.com
or 432-1000, ext. 214.
