While state and economic development officials often focus on attracting new companies to create jobs and spur the economy, some business experts say another novel approach may be even more effective in achieving those goals. The Small Business Commission composed of lawmakers and business leaders learned the details about “Economic Gardening” during its Richmond meeting on Monday. The entrepreneurial strategy targets small businesses that are on the verge of becoming high-growth companies.
The Edward Lowe Foundation’s Penny Lewandowski compared “Economic Gardening” to winning a baseball game by getting runners on base through hits rather than home runs. The approach provides expert help to companies that are no longer start-ups and are in their second stage of growth. She said second-stage Virginia businesses create a large portion of jobs.
“8.7 percent of your companies are representing 34.1 percent of your jobs. And if we move to sales, we are going to see the same thing—34.9 percent.”
Metrics from other states with “Economic Gardening” showed even better results. For roughly 4,000 dollars per business, specialists advise on strategic growth challenges, business models, and competitive intelligence that companies otherwise could not afford. Panel member Dana Dickens said a Hampton Roads pilot of the approach was successful, but he also saw the need while in office.
“I was mayor of Suffolk for a while, and we cut a bunch of ribbons. And without exception, when we cut a ribbon bringing a company in from the outside, there was always an existing business there saying, ‘What are you doing for me?’”
The panel may craft a proposal to use state incentives to provide expert help specifically for second-stage businesses.