Best Practices Promoting Economic Vitality June 28 2011

Best Practices Promoting Economic Vitality June, 28, 2011 Brenda Swartz School 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 • Help. Net 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 Ameri. Corps 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 – 5 th graders - 1 st year one firm paid for all Floyd Co 5 th graders to attend - Chase JA Finance Park – 8 th 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 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, 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

• 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