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Showing posts with the label regional development

Small Business Start-Ups Create Economic Impact

Economic growth is important for cities, states, and nations. Research by Donald, et. al. (2009) helps decision-makers understand that a healthy balance between large and small business development puts economies on the right track to flourish while encouraging positive budget balances. Their study shows that the activity of business start ups foster growth not only in one state but also the surrounding states. Some businesses will succeed and others will fail but the economic activity of constant start ups is a revenue generator.  The U.S. Small Business Administration reports small business activity is one of the major engines to economic growth and creates a majority of new jobs. It is possible that smaller businesses that are entrepreneurial by nature engage in research and development that have an even larger impact on the economy (Acs and Plummer, 2005). Both jobs and innovation are needed to keep the economic engine running at ideal speeds.  There are a number of eco

Economic Development through a Cultural and Financial Lens

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In the Hispanic villages of northern New Mexico a quest for the development of culturally appropriate and economically sustainable hubs has created new methodologies.   It was a push to move the villages from a colonial area design to something new and more progressive. The author Kristina Fisher (2008) discusses how business development and agricultural improvement can be fostered through non-profits.  The War on Poverty and The New Deal created much activity in the region but communities soon when back to their traditional ways of life.   Some questioned the logic of these programs and the ability to raise local Hispanic communities out of poverty. In 25 years since the non-profit Ganado del Velle was created it used the hub and spoke model to create interrelated economic development projects that led to higher levels of local development.  The model used incubation with hub and spoke model to develop the natural and cultural resources of the valley. Some of their works

Developing Economic Activity through Hub and Flagship Models

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Researchers Kim and Le-Yin investigated the economic develop of the province of Qingdao, Northern China, to determine how foreign direct investment clustering set up by local government helped to create an electronic industry renaissance (2008). Using the hub-and-spoke model of geography with the flagship-and-five partner’s model of strategic management offers an additional theoretical lens to spur economic activity.   The key is to encourage the economic hub to drive and influence the global network versus being perpetually dependent on it. Direct investment in China has superseded most countries of the world and has consistently beaten the U.S. since 2002. Chinese leaders have set up economic zones in urban areas that are the center of economic activity. As the investments in internal businesses rises so does the exports of the nation. Electronics is one field in which the Chinese have exceeded expectations.   There is a dependent and a developmental type structure. In

A Case Study on Regenerating a Local Economy

Dr. Rosabeth Moss Kanter builds off of her previous research of five American cities of Boston, Cleveland, Miami, Seattle, and Spartanburg-Greenville to find patterns to success economic rejuvenation. It is important for struggling cities to develop concepts, competence and connections. It is also necessary to encourage those who think in the region to work with those who make products and those who sell the products. As an example of success, she focuses in on Spartanburg-Greenville and how it became a world class area of manufacturing that attracted foreign investments from 215 companies in 18 countries. Without visionary leadership, friendly business environment, commitment to training, and collaboration between business and government the success story would have never generated. Her paper argues that success will come from matching the local needs to that of the global economy. Unfortunately, there is a level of divergence between locals who are aware of local issues and t