08-04-08 Special Called Regular Meeting of the La Porte Development Corporation Board of Directors

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ECOnO~lIiance Houston Port Region City of La Porte Business Retention & Expansion Program Among the many initiatives an economic development organization can undertake to help retain and grow local businesses, none is more valuable than building a relationship with a company's top decision makers. Such relationships with primary manufacturers and suppliers enable a community to position itself as a valuable source for information and assistance, further enhancing the community's chances of securing job growth and retention. The City of La Porte, with the assistance of the Economic Alliance Houston Port Region, plans to do just such a BR&E initiative. Existing business is critical for economic development. Studies have shown that up to 80 percent of job growth in any community comes from existing businesses, rather than from new business. It therefore makes good sense to encourage local employers to stay, grow and add more workers. The Business Retention & Expansion program has two key goals: to help local economic developers create a consistent approach for building relationships in their community, and to help the economic development community analyze and understand trends both in their local regions and global market place to foster business retention and expansion. Listening to and learning from our existing employers provides us with clear directives that impact all facets of the economic portfolio, including recruitment and entrepreneurship opportunities. Local companies will openly prescribe a "wish list" of vendors for supplies, business services and a variety of other needs. This target list can be used to spur new business ideas in the entrepreneurial community and attract seed capital. As the community grows and prospers so to do retail and commercial components to round out the overall economy. This multi-phased approach also protects us from sharp downturns in anyone segment of our economy through diversification. Communities can discuss challenges and opportunities around the program, such as how global pressures are impacting a particular industry segment, or workforce issues and skills gaps. This attention encourages the company to continue operating in the local community, in addition to building rapport with company executives. If local businesses are not healthy, new business will not come to a community.