Strategic Entrepreneurship & Economic Development: Option 6 8-25-16

+

Strategic Entrepreneurship & Economic Development in Colorado

Jasper Welch, Four Corners Management Systems

Co-Founder, DurangoSpace

8/21/16 www.jasperwelch.org

AGNC ED Summit August 25th

SEED-ing Option 6

+Small Business & Job Creation Source: Locavesting, Amy Cortese, 2011

!  80% of net new US jobs created by small firms with less than 20 employees

!  Counties with smaller firms (avg size) grew jobs faster that Counties with larger firms.

!  Linkage between size of company (Stage 2) and job creation (1/3 of net new jobs)

!  Buy, trade & shop Local movement (Local First-Durango) build you own economy – make your own coffee, chocolate, beer…


NONTRADITIONAL OFFICES Emerging Trends in Workplaces:

40% of the workforce will be freelancers, temps, independent contractors or solo-preneurs by 2020

FORTUNE companies (CISCO, eBay, Yahoo, etc.) reported that at least 20% of their employees telecommute regularly – approx 50 million full or part time employees (all businesses) in US marketplace

Telecommuting grew by nearly 80% since 2005

Number of co-working spaces worldwide has increased every year since 2006 – now 7,800!

Source: http://globalworkplaceanalytics.com/telecommuting-statistics

2015 International NBIA Conference, Denver, Colorado 8/21/16

www.jasperwelch.org

Shared Economy impact on changing WORKPLACE?

Less rigid work space, more shared space, freelancers & entrepreneurs, cross functional teams, mobility over fixed location - Significant change in the workplace, including the “Work Anywhere Platform”

2015 International NBIA Conference, Denver, Colorado 8/21/16

www.jasperwelch.org

+Colorado Economy at a Glance 2016 Economic Outlook, University of Colorado

!  Establishment creation from 2009 to 2015 (grew at 3.4% per year), or 50,000 new establishments/yr

!  Colorado lost 49,000 jobs from FY2009 to FY2015 – new job (loss) creation in US is being restructured.

!  2016 population estimate for Colorado: Natural growth(births less deaths) 33K, plus net migration of 62K = 95K new residents.

!  83% of Colorado jobs are with companies with 10 or less staff

!  Agriculture strong, slightly declining over last several years.

!  Mining, O&G receipts & taxes down, coal production 40MM tons 2004, with 2016 forecast down to 20MM

!  Construction has increased nearly 50% over 2009 low point

!  Colorado has very diversified economy & multiple income sources

!  Pro&Biz Services, 15% of Colo jobs


Jobs & Population in Colorado Colorado Economic Sectors

+What is going on out There? !  How did Colorado become #1 state in home-based workers?

!  Choosing Colorado lifestyle & family over fixed location where you are “stuck”- Remote workers changing how & where “work is done”

!  Boulder, CO region was among the highest in US on home-based workers (10.9% - US Census data – 2010) – Colorado is higher than US

!  What percentage of IBM employees work independently? Remotely?

!  Increases in computer, science, engineering, managers !  High paying remote workers in your community

!  What is the big deal about location neutral workers?

!  Remote workers & virtual teams? !  Randall at www.appfire.com coworking at DurangoSpace


+Restructuring of the Labor Force Why Freelance & Remote Workers Matter?


Labor Market Participation Declining since 1999

+Research from the Iron Range SW Colorado: Leaders & Entrepreneurs


+Research from the Iron Range SW Colorado: Leaders & Entrepreneurs


“We think Durango, CO can provide lessons on successful community engagement and entrepreneurial leadership. We hope these cases (DurangoSpace, SCAPE & Leadership La Plata) will show what is possible in small towns for fostering a strong community of leaders and entrepreneurs.”

Resilient Range study, summer 2016

+How is the “Now” Economy Impacting Us?

•  What’s impacting small towns in Colorado? –  Solo Entrepreneurs – benefiting from Shared Economy –  Lifestyle is driving work location vs. companies driving it –  Location neutral workers

–  Access to Coworking –  Rural Bandwidth Access –  Life Style options are what Colorado offers

–  Shared Economy: co-ops, VRBO, artisan coops, Coworking –  Coworking: Workspace as a Shared Service


Used to be isn’t anymore? Location Neutral

+ Western Colorado Airports & Nat’l Parks CU Business Research Division, 2016 Outlook

!  Grand Junction: 438K

!  Eagle: 330K

!  Aspen/Pitkin: 435K

!  Yampa/Hayden: 184K

!  Durango/La Plata: 387K

!  Montrose: 181K

!  Gunnison: 63K

NP/NM Town Visitors Trend?

Colorado GrdJct 438K Stable

Curecanti Gunnison 934K Stable

Dinosaur Craig 167K Less

Hovenweep Cortez 11.8K Stable

Mesa Verde

Cortez Durango

540K Up

Black Canyon

Montrose 173K Stable


Airport Traffic in Thousands Nat’l Parks & Monuments

+Coworking in a smaller Colorado communities?

!  Community first, Space second !  It’s amazing who “shows up”

!  Special Events, Training, Social Time, Informal Gatherings

!  Flexible (wheels): tables & chairs

!  Connected - 50Mbps+ Internet

!  Dgo Coders, Two-Tap Kegerator

!  Strategic Partners w- Alliance, SCAPE, Durango BID, Dgo Learns

Why Your Community needs Coworking? Lessons learned at DgoSpace

" Home offices unlikely to meet all needs of location neutral workers

" Integrate “solo” entrepreneurs into the community & workforce

" Independents need workspace, remote workers need community

" Accelerated serendipity will happen

" Full Service offices are pricey for solo entrepreneurs & remote workers


+Micropolitan Area – Economic Strength Index www.policom.com !  Urban Core of 10,000 population, not to exceed 50,000 people

!  There are 536 micropolitan areas in United States

!  In Western Colorado, here are a few (including Policom rank) !  Durango, CO (Ranked #7 by Policom, #13 or above rank in 8 of 10 years)

!  Edwards, CO (Back up to #69, but has been in Top 10 previously)

!  Montrose, CO (Slipped to #365, but has been in Top 50 previously)

!  Breckenridge, CO (Ranked #265 now, up from 335, in last 3 years)

!  Steamboat Springs, CO (Ranked #54, up from #139, in last 3 years)

!  Craig, CO (Ranked as high as #99, now 253, over last 3 years)

!  Glenwood Springs (Ranked #81 to #84, over last 3 years)

!  Grand Junction is a Metropolitan Statistical Area (50,000+) !  According to Policom, it ranks #295 out of 366 Metro areas


+Where the Jobs Are, Dearie & Geduldig Entrepreneurship & Soul of American Economy

!  Startups are the primary “net new jobs” creator in the US – contributing 2.5MM to 3.0MM/year

!  Early access to capital is critical for startups, along with access to technical & startup assistance

!  Business incubators & accelerators enhance startup formation, financial viability & operational success

!  R&D tax credits & job created tax credits contribute to startup success


+What is happening in Durango?

!  Entrepreneurs create companies, innovate new ideas, create jobs and diversify the local economy: Company creation = job creation

!  Within Durango’s economy County metrics 91% of Companies have 9 or less employees

!  Durango micro enterprises create 53% of our jobs (5X as many as Stage 3+4 companies in the County)

!  Stage 2 companies (based in Durango, such as Stoneage, Inc.) represent just 5.4% of companies, but they are creating 34% of the jobs!


LaPlata Co. Company Metrics Source: www.youreconomy.org

La Plata COCompanies

Self Employed Stage 1: 2-9 Stage 2: 10-99 Stage 3&4: 100+

7,174 38% 56% 5.4% 0.23%


Self-Employed Stage 1: 2-9 Stage 2: 10-99 Stage 3: 100+ Stage 4: 500+

Create & Coach Coworking

Incubate, Train, SBDC

Focused Growth Econ Gardening

Sustain & Keep Growing

Targeted Asst – Keep Engage

Most jobs per Company Stage in La Plata County (Durango area)?


38% companies

56.3% 5.4% 0.2% 0.03%

10% of LPC jobs 42.7% 33.8% 8.1% 5.3%

Option 6 - Strategies to create companies & jobs?

Montrose CO Company Metrics Source: www.youreconomy.org

Montrose CO Companies

Self Employed

Stage 1: 2-9 Stage 2: 10-99 Stage 3&4: 100+

4,645 39.2% 55% 5.8% 0.01%



Create, Coach Coworking

Incubate, Train, SBDC

Focused Growth Econ Gardening

Sustain & Keep

Targeted Asst

Most jobs per Company Stage in Montrose County (Montrose area)?


39.2% companies

55.0% 5.8% 0.1% 0.00%

11.5% of MC jobs

46.3% 38.5% 3.7% 0.0%

Strategies to create companies & jobs?

Self-Employed Professionals

Telecommuters, Remote Workers

Location Neutral Workers

ORIGINAL ISSUE:

REVISIONS:

PROJECT

13 April 2011

Colors shown via electronic media may not accurately represent final production colors.

DurangoSpace

Exterior Projecting Sign1221 Main Ave.

Durango, Colorado

This signage renderinghas been preparedfor communicatingsignage types,placement and applicablesquare footages.

Not for construction.

16”

54”

16” x 54” = 6 SFDouble Sided, Projecting

C 5 m23 y71 k0

C 51 m5 y98 k23

C 2 m1 y9 k0

C 100 m5 y20 k22

Coworking/Shared Workspace

Grand Junction Business Incubator

Start Up Company Support

Launch, Incubate, Invest & Grow

Business Incubation

Launch WestCO (#slack)

Telluride Venture Fund

SW Colo Accelerator (SCAPE)

Entrepreneurship

What are Strategies to Create Jobs?

Hint: Create a Company! Then Grow it!


+Entrepreneurs of DurangoSpace The “Now” Economy in western Colorado


!  Mozilla (Matt Brandt) !  https://www.mozilla.org !  Worldwide support

organization for Firefox !  Senior Dragonslaying Lead !  E-i-R at SCAPE

!  Gaia Creative (Sarah Douglas) !  http://gaiacreative.com/ !  Sarah: Dgo; Jessica: Eugene !  Clients across Colo & west US !  Based at DurangoSpace

!  GitPrime (Travis & Ben) !  https://gitprime.com/ !  DevOps: Software Visual Mgmt !  Travis & Ben met at DgoSpace !  Distributed Team (Colo-CA-

Europe) – Y-Combinator 2016

!  Jim MacKay (Investor/Biz Dev) !  http://www.linkedin.com/in/

jimmackay !  Prez – http://www.impyrium.com !  CoFounder: SW Colo Accelerator !  Private Investor & Biz Dev Expert

+Emerging Entrepreneurship Programs & Organizations (western Colo, partial list)


!  Accelerators/Incubators

!  GJ Biz Incubation Center

!  SW Colo Accelerator (SCAPE)

!  Telluride Venture Accelerator

!  CMU, Western State, Yampa

!  Colorado SBDC Network

!  Craig, Grand Junction, Durango, Cortez, Gunnison, Montrose, + add’l satellite offices

!  http://www.coloradosbdc.org

!  Coworking/Shared Space

!  DurangoSpace, Durango,CO

!  Proximity Space, Montrose

!  Elevate (Frisco, Breckenridge)

!  Evo3 Workspace, Frisco, CO

!  Regional ESO’s

!  New EDA I-6 Grant -Thea Chase – Telluride Foundation

!  LaunchWestCO initiative

!  Startup Weekend(s)

+So What Does Entrepreneurship have to with Your Community?

!  Startups are Front End of the Business & Job Creation Process

!  Distributed Workers & Remote Workers Already in western Colo

!  Web-Based & Cloud Technology enabling Rise of Coworkers & “Quick Start” Companies

!  Stage 2 Companies launch from Self-Employed & Stage One (Economic Gardening strategy)

The Whys for Your Town? DurangoSpace Proven Model


+Bang for the (EDA) Buck? per $10K Source: Grant Thorton, EDA Research, 2008

Project Type Estimated Jobs Created

Federal Cost per Job

Business Incubators* 46.3 to 69.4 per $10K spent

$144 to $216 per job

Commercial Structures 9.6 to 13.4 jobs $744 to $1008

Roads & Transportation 4.4 to 7.8 jobs $1,293 to $2,293

Industrial Park Infrastructure

5.0 to 7.3 jobs $1,377 to $1,999

Community Infrastructure

1.5 to 3.4 jobs $2,920, to $6,872


*Business Incubators are 5X to 10X more effective in job creation!

+Here’s an Option #2 approach… …We’ll just let the marketplace decide!

From a recent e-mail, sent to Jasper, regarding why a local community in western Colorado can’t invest in their version of Strategic Entrepreneurship & Economic Development:

1.  No Money

2.  Let the private sector support Economic Development

3.  What does a few small businesses really do for our town?

4.  We need a 50 to 100 employee company to move into our community.



Strategic Entrepreneurship & Economic Development

•  Let’s look at Option 6 – Entrepreneur Ecosystems – Start-Ups & Coworking – Launching Stage One to

prepare for Stage Two – Focus on Stage Two

(growth) – Retain Your Stage 3 & 4 – Recruit where there is a

match with your town – Best practices & next

practices for community

1.  Do Nothing & Hope your local Economy works out.

2.  Say that everything is OK, and we’ll just let the marketplace decide.

3.  Hang on to the Companies you have, and ignore the rest (start-ups, recruiting, expanding, virtual)

4.  Retain what you have, & try to expand as well.

5.  Big 3: Recruit, expand & retain companies

6.  Start-ups, grow Stage 2, retain key Companies

+Next Practices for your EDO? What is next?

Program Focus for Start-ups & Job creation?

Last (no) Practices at our EDO?

Best Practices at our EDO?

Next Practices in your area?

Create & Coach Self Employed? Coworking?

Stage One Company Develop & Launch?

Stage Two Company Focused Growth?

" Research on Self-Employed (Lone Eagles) in your community

" Research on early Stage One (2 to 4 employees) – Job Creators

" Research on Entrepreneurial Ecosystems – such as SBDC

" Coach & create Self-Employed “Lone Eagles” - coworking

" Incubate & launch Stage One companies – Grd Jct Biz Incubator

" Focus growth (economic gardening) for Stage 2


+Glossary of EDO & Entre Terms

" Biography: Jasper Welch " Self-employed since 1983 " Consultant: Working with EDO’s,

companies, Non-Profits since 1991 " Business Incubation – 12 years (San

Juan College, Farmington, NM) " EiR: SW Colorado Accelerator " Co-Founding Chair: Leadership La

Plata, Durango, CO " Club 20 Board & John Vanderhoof

Award (2003) " Co-Founder: DurangoSpace, LLC " Past & Present Boards: Stoneage,

FastTrack Communications, WSI Enterprises, Data West

# EDO: Economic Development Organization

# Coworking: Shared workspace for self-employed, remote & independent workers

# SBDC: Small Business Development Center

# Option#6: A continuum approach to EDO programs, recommended by Jasper

# Stage 1: Company with 2 to 9 employees (majority of companies in western Colorado)

# Stage 2: Company with 10 to 99 employees (highest % job creation among companies)

# Incubator: Integrated business support program where Stage 1 companies are launched

# InBIA: International Business Innovation Ass’n


+


Small Business & Entrepreneurship

Strategic Entrepreneurship & Economic Development: Option 6 8-25-16