Business Retention and Expansion

Business Retention and ExpansionPhoto by 123RF

Economist Joseph Schumpeter (1883-1950) is best known for his economic theories on business cycles, capitalism, and for introducing the concept of entrepreneurship. In Capitalism, Socialism, and Democracy (1942), Schumpeter coins the term “creative destruction,” which describes the “process of industrial mutation that continuously revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one.” The term easily applies to economic development organizations (EDOs) and their approach to business retention and expansion.

Where Are Jobs Being Created?

Economic development leaders understand the importance of new and existing businesses. They are keenly interested in existing companies, which create 75 percent of new private-sector jobs. They are also attentive to the 25 percent of new private-sector jobs that come from the churn of new startups minus business closures (U.S. Bureau of Labor Statistics, 2020).

Employment From Establishment Dynamics, 2010-2018
Richard Mulligan | The ED Advisor Employment From Establishment Dynamics, 2010-20218

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EDO concerns about existing businesses and employment are reflected in the implementation of business retention and expansion programs. Business Retention & Expansion International, in partnership with Eric Canada, CEO, Blane, Canada, Ltd., offer the following definition for such activities:

“In economic development, business retention and expansion is a program designed to strengthen the connection between companies and the community while encouraging each business to continue to grow in the community. Through direct interactions, events, and research, the program seeks to gain insight into business practices, planned future actions, as well as the challenge of targeted companies. Then, to turn this ‘business intelligence’ into value added services, programs, and/or products that address individual and shared company opportunities and problems” (2018).

Properly executed, business retention and expansion programs cultivate a strong business climate and create satisfied CEOs that become effective cheerleaders and tireless goodwill ambassadors for the community. At the same time, business prospects evaluate the community’s economic suitability and receptivity for business through conversations with these same CEOs.

The business retention and expansion toolbox includes business surveys, business walks, industry roundtables and focus groups, and other activities. The level of community engagement adopted by EDOs is a reflection of their social, economic, and cultural environment.

Business Surveys

One technique for soliciting feedback about a community’s business climate is the implementation of business surveys. This requires EDOs to build a database of existing businesses and determine the types of businesses that will be approached (e.g., high-wage firms, firms in select geographic areas, or firms in targeted industry clusters). Hard copies of the surveys are mailed to local businesses and recipients are given two options to provide feedback — online through a SurveyMonkey link or completion of a printed copy of the survey. The information collected protects the confidentiality of respondents and the survey results are reported in the aggregate, helping EDOs to better serve the needs of existing employers.

Business Visitations

Complementing business surveys are volunteer- and economic developer-led business visitations. Visits are focused on interviews with C-level executives to learn how the community might help their company. The interview solicits information about the firm’s plans for expansion or relocation, which is helpful in identifying growth opportunities and at-risk companies. Follow-up is critical and can take the form of a letter or phone call that responds to issues raised during the interview.

Capturing and analyzing the data obtained from business surveys and visitations is an important component of business retention and expansion programs. A variety of software packages are available to help manage survey data and provide insights into local businesses and their economic potential, including:

Bludot

Bludot offers modern, cloud-based software that allows users to view and manage all businesses in the community with one platform. A relatively new product on the market, Bludot is now live at 14 cities located in California, Florida, and Maryland. Bludot recently offered 3 months free usage of their software for any cities that want to support and engage with their businesses during the COVID-19 pandemic. The firm has received funding from the Alchemist Accelerator and GovTech Fund, is a startup partner with City Innovate, and a member of Stanford StartX.

ExecutivePulse

ExecutivePulse is promoted as a Customer Relationship Management (CRM) solution for economic developers, public-sector agencies, and community stakeholders. The product can be used for business recruitment, foreign-direct investment, business retention and expansion, entrepreneurial development, workforce development, and related initiatives. Recent case studies listed on the firm’s website include the Province of Albert, Canada; Birmingham Business Alliance; British Columbia Economic Development Association; Fresno County Economic Development Corporation; Philadelphia Works; Cornerstone Alliance (Southwest Michigan); Province of Ontario, Canada; Commonwealth of Pennsylvania; and San Bernardino County, California.

Gazelle.ai

Gazelle.ai is an “AI-Powered Business Intelligence Growth Platform” designed to identify fast-growth companies for business development. Extremely useful for business attraction and recruitment, the platform also has the ability to identify growth companies in the EDOs own backyard. Client resources include articles, infographics, press releases, podcasts, and webinars.

Synchronist Suite

Developed almost 20 years ago, Synchronist Suite is the granddaddy of crowdsourced economic development software. The platform revolves around business interviews, interview validation, objective analysis, predictive analysis, and key performance indicators. Synchronist provides insight into customer relationship management; each company’s value, growth potential, level of risk, and satisfaction; quality of a market’s retail, education, health care, arts/culture, and other local services; talent development; project tracking; research; and training. The “Synchronist User’s Forum” is held annually to network, share best practices, conduct how-to sessions, and discuss ongoing research projects.

Business Walks

Business walks provide a day dedicated to learning more about local businesses through face-to-face interviews on the business’ turf. They allow teams of community leaders to canvass multiple businesses in one day, covering more ground than traditional business visitations. The teams utilize short, streamlined surveys of predetermined questions to identify issues and bring resources to bear on those issues, and to diagnose firms on the brink of expansion or those at risk. Successful business walks are held in communities throughout the United States and Canada.

Regardless of technique, business retention and expansion programs work best when integrated into the EDOs economic development strategy, business attraction and recruitment, and entrepreneurial development initiatives.

Industry Roundtables and Focus Groups

Anatalio Ubalde, CEO, SizeUp and GIS Planning Inc., has written a thought-provoking article that identifies 10 business retention and expansion innovation trends. He considers industry roundtables and focus groups a superior method of collaborative problem solving. He makes the argument that “the business survey should die,” and outlines their shortcomings when it comes to dealing with the “acting as fast as business” expectations of modern companies. In his opinion, business surveys are not agile enough to anticipate fundamental marketplace shifts.

“The business survey should die.”

Anatalio Ubalde, CEO, SizeUp and GIS Planning Inc.

Business walks help to expand the retention and expansion footprint, but require that EDOs follow up quickly to address the issues raised by businesses. If EDOs are incapable of responding quickly, Anatalio believes they are better off not proceeding with a business walk.

Deliver Direct Value

Ubalde finds there is an inherent conflict between EDO job creation metrics, businesses that are focused on increasing productivity and reducing labor costs with technology, and workforce development. Going forward, the focus of business retention and expansion needs to change. If EDO and local business meetings are to be successful, economic developers have to deliver direct value to local businesses. Delivering direct value means viewing business relationships as a two-way street. Instead of gathering business intelligence and responding in-kind, Ubalde contends that EDOs should use Internet-delivered technology to proactively deliver assistance to a broader constituency of local businesses. This takes the form of data and information that helps them better understand company performance, find customers, and improve operations.


A market-driven economy is going to produce a certain amount of “churn” or “creative destruction” over time. In fact, strong economies are characterized by high rates of churn and high rates of economic growth. The challenge for economic development professionals is determining how to help businesses survive and grow in the midst of inevitable change, while mining business intelligence data.


Editor’s Note: “Beyond the Survey: How EDOs Add Value Through Business Retention and Expansion” explains how EDOs are moving from basic survey and visitation models to more comprehensive, value-added models. The paper outlines the various ways EDOs are serving businesses, measuring their activities, and promoting them in the community.

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The Unsung Progress of Women

The Unsung Progress of WomenPhoto by Jungwoo Hong on Unsplash

The title on her Facebook page reads: “Sara Fried Fitness.” A static banner at the top of the page displays this header: “Sharing My Life * Monthly Online Fitness Groups * Ongoing Personal New Coach Mentorship.” Below is the tagline: “WIFE. Physical therapist turned SAHM to two boys. Fashion lover.” Website visitors are invited to text with questions about fitness, nutrition, or personal development. In a recent post, she laments the impact of a car accident that left her with a herniated disc. She refers to physical therapy as “a career I love…& I mean LOVE,” noting that “Coaching has given me choices. And while I’m going to stay in physical therapy as long as I can, it’s nice to know I have options.” Sara’s social media platform is a living testimony to the unsung progress of women.

Education Gender Gap

She also happens to be my daughter.

Sara is a graduate of Northern Arizona University (NAU), where she earned a Bachelor of Science in Exercise Science. She, along with other female students of the millennial generation (and beyond), make up a majority of full- and part-time students attending U.S. colleges and universities. It’s been this way for quite some time. One has to take a step back in time — 1978 to be precise — to find enrollment records where male students outnumber their female counterparts in postsecondary education. The gender gap has widened considerably in the last four decades.

Richard Mulligan | The ED Advisor Source: National Center for Education Statistics

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Education and Earnings

The strong correlation between education, income, and wealth is common knowledge. What is not well known is the extent to which women have leveraged their education to increase their paychecks. Reports show that increases in earnings have favored women over men for decades.

Richard Mulligan | The ED Advisor Source: U.S. Bureau of Labor Statistics, Current Population Survey

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On the lower end of the education attainment spectrum, both men and women have experienced declines in weekly earnings. However, the decrease for women was much smaller than for men — a drop of 5 percent for women, compared to a decline of 26 percent for men.

Men with moderate education attainment levels have experienced a decline in weekly earnings of 18 and 11 percent, respectively. At the same time, women with equivalent levels of education increased their earnings by 3 and 5 percent.

Earnings for women with a bachelor’s degree or higher increased 34 percent, while earnings for men rose by 19 percent.

Herein lies the primary evidence for the unsung progress of women.

There is No Gender Wage Gap

“Equal Pay Day” was originated by the National Committee on Pay Equity (NCPE) in 1996. The symbolic day serves as a public relations event to illustrate the pretense of a gender pay gap.

Democratic leaders — President Barack Obama, Hillary Clinton, and others — have mimicked the NCPE’s contention that “In 2018, the median salaries for all full-time, year-round workers showed women earning 81.6 cents for every dollar men earned.” Outlets as politically diverse as HuffPost, Prager University and The Washington Post have explained this statistic and why it is misleading.

The gender gap statistic cites only the average difference between men and women, across all jobs, making no mention of occupation, position, education, number of hours worked, time taken off, or most significantly, the impact of personal life choices. A study by the American Association of University Women (AAUW), a well-known feminist organization, looked at male and female college graduates one year after graduation, and found that when you control for the differences in choice between men and women, the wage gap narrowed to only 6.6 percent.

Choice is the operative word.

Far fewer women choose to work in construction, production, transportation, and material moving occupations, preferring to enter career fields that pay less than those chosen by men. On the other hand, more women choose to occupy a higher percentage of professional and related occupations than men.

Richard Mulligan | The ED Advisor Source: U.S. Bureau of Labor Statistics, Current Population Survey

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Impacting women’s decision-making processes is their personal preference for jobs with lower pay but greater benefits (time off to raise children), less physical risk, and more stable work hours.

Those asserting that the gender gap is a product of discrimination against women have invested in faulty logic. Using the same reasoning, young men are being discriminated against by young women. After all, twenty-something females have earnings that exceed men’s income by 10 percent or more, at least in certain disciplines. It must also be true that white men are being discriminated against by Asian-American men, who outearn their caucasian brethren by over 5 percent. Silly, right? Such flawed thinking is ridiculous at face value, which drives home the point.

Epilogue

If you compare men and women who hold the same job, with similar backgrounds and qualifications, the wage gap is virtually nonexistent. This runs counter to our political discourse, much of which is firmly entrenched in 1970s-era feminism. Claims that women are being paid less, and this is key — for doing the same work as men — doesn’t hold up to tighter scrutiny. Fact checkers have consistently rated such claims as “mostly false.” Unfortunately, that hasn’t stopped politicians and well-intentioned advocates from portraying women as chronic and perpetual victims of discrimination.

This does a disservice to the millions of women who, like my daughter, earned a college degree, pursued their passion, built a career, and made tremendous economic strides. They are making personal career and life choices — often in collaboration with their husband, partner, or significant other — to achieve positive outcomes for themselves, their families, and the communities where they live.

Let’s celebrate the unsung progress of women.


Editor’s Note: A report from the U.S. Census Bureau, “The Changing Economics and Demographics of Young Adulthood: 1975 – 2016,” reveals that young women are pulling ahead of many young men in the workforce. At the same time, young men are falling to the bottom of the income ladder, a trend we will explore in a future blog post.

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Social Entrepreneurship for Persons with Disabilities

Social EntrepreneurshipPhoto by Ian Schneider on Unsplash

Social entrepreneurship is on the rise.

Conventional wisdom tells us there is a big distinction between for-profit businesses and non-profit organizations. Businesses are laser-like focused on their market-driven business model; nonprofits strive to fulfill a charitable mission that advances the public interest. As the old saying goes, “never the twain shall meet.”

This traditional way of thinking is giving way to the notion that businesses can pursue profits and address key social and environmental issues. Likewise, nonprofits can stay on mission and generate a profitable revenue stream. Both concepts are essential components of an alternate business model — the social enterprise.

Properly executed, social enterprises are uniquely positioned as change agents for addressing a particular social problem. Social entrepreneurship is spreading across a wide range of industries and pursuing altruistic goals — not the least of which is giving persons with disabilities a lift up.

Motivating Factors

What is the motivation for pursuing social entrepreneurship and the desire to operate social enterprises for persons with disabilities?

A primary consideration is the economic divide that exists between persons with and without disabilities. The 2019 Annual Report on People with Disabilities in America, published by the Institute on Disability/UCED, University of New Hampshire, outlines the scope of their social and economic status:

Population

There are 42.6 million people with disabilities, who comprise 13.1 percent of the U.S. population. Disabilities refers to difficulties related to vision, hearing, cognition, ambulation, self-care, and independent living. The percentage of the population with disabilities has trended upward during the past decade, increasing from 12.7 percent in 2008 to 13.1 percent in 2018.

Education

Approximately 16.7 percent of persons with disabilities have not attained a high school diploma, compared to 7.7 percent of their peers without disabilities, reflecting a 9.0 percentage gap.

With regard to the gap between people with and without disabilities at the postsecondary level, 15.6 percent of persons with disabilities attained a bachelor’s degree or higher, compared to 38.4 percent of those without disabilities. This reflects a college-or-more gap of 22.8 percent.

Employment

About 37.5 percent of people with disabilities are employed on a full-time basis. In contrast, the employment percentage was more than double for people without disabilities at 77.8 percent. The employment gap is 40.3 percent.

Earnings From Work

The median earnings of full-time/full-year workers with disabilities was $40,454, compared to $46,250 of workers without disabilities, resulting in an earnings gap of $5,796.

Poverty

Earnings from work and personal income are indicators of a person’s financial condition. At the same time, poverty is measured at the family level. An individual is considered to be living in poverty if they live in a family with income below the poverty line — a figure that varies depending on the makeup of their family. In 2018, the poverty rate for people with disabilities was 26.9 percent, compared to 12.2 percent for people without disabilities.

Statistics don’t tell the whole story.

Parental caregivers worry about what happens to their developmentally disabled children when they grow up. As the statistics on disabilities have shown, their chances of obtaining employment, decent living arrangements, or achieving financial independence are significantly compromised. Government assistance and nonprofit agencies are helpful, but their resources are insufficient when it comes to overcoming the barriers that persons with disabilities face in society. A different model is needed that rises to the occasion.

Necessity Becomes the Mother of Invention

Parents and primary caregivers are taking matters into their own hands. They are starting businesses and nonprofit charities so their adult child can know independence and achieve a greater sense of belonging.

Outlined below are several examples of a larger growing trend — social enterprises that embrace the concepts of social entrepreneurship and inclusivity, and have a passion for working with developmentally disabled people.

First Place®

Aspiring to serve as a catalyst for international models, First Place® provides a supportive housing and residential transition program for individuals with autism and people with other disabilities. Folded into their program are sites for education, training, and creative inspiration.

First Place-Phoenix, the 501(c)(3) nonprofit charitable organization’s first new property, leases 55 apartments where residents are supported by a suite of resources and amenities that are designed to maximize independence, community integration, personal enrichment, and quality of life.

The Southwest Autism Research & Resource Center operates the two-year, tuition-based First Place Transition Academy, building crucial independent living and career-readiness skills for 32 participants each year.

First Place Global Leadership Institute works toward increasing the number of housing options available to persons with disabilities. The Institute collaborates with educators and medical professionals, focuses on autism research, and develops leadership skills and competencies to advance promising best practices.

Luna Azul

Located in Phoenix, Arizona, Luna Azul is the first for sale residential community in the nation that is specifically designed for adults with disabilities. This one-of-a-kind community consists of 30 single-family, cottage-style residences in a planned “pocket neighborhood” of smart homes. A partnership with Partners4Housing provides an online matching platform to help people move into independent housing. The homeowner’s association employs a full-time, on-site director and overnight staff to promote community engagement, safety, and peace of mind for the resident population and their caregiving families.

Not Your Typical Deli

Not Your Typical Deli is a full-service delicatessen and bakery, located in Gilbert, Arizona. It was created with a special purpose in mind — not only do they serve award-winning food, they also provide an integrated work environment for those with developmental disabilities. On average, 60 to 70 percent of their workforce is made up of adults with autism and/or other developmental challenges.

NYT Deli serves as a job-training site, offering three 12-week training programs per year for adults with developmental disabilities. Because of its popularity, the restaurant has a huge backlog of applicants to work at the deli. Rather than expand the deli, the owners created the Not Your Typical Culinary Academy to prepare students for employment in the restaurant or hospitality industry.

Spencer’s Place

Spencer’s Place is a coffee shop and bistro in Surprise, Arizona. The small business employs individuals with cognitive and developmental disabilities. Per their website, these individuals are able to “earn a paycheck, build relationships, gain a sense of purpose, and show the community the beauty of diversity and inclusion.” Spencer’s Place was created in partnership with the Employed and Overjoyed Foundation to promote equal employment opportunities for persons with disabilities.

Social entrepreneurship is the driving force for innovative business solutions that create employment opportunities and supportive housing for people with disabilities. That mindset is channeled through social enterprises that have a double bottom line of profit/loss and social impact.


Editor’s Note: The Case for Inclusion Report 2019, a publication of United Cerebral Palsy and the ANCOR Foundation, ranked Arizona #1 in their state rankings for performance in serving individuals with intellectual and developmental disabilities.

Urban Agriculture: A Tool for Sustainability

Urban Agriculture Food Cooperatives Community Gardens Vertical GardenPhoto by Markus Spiske on Unsplash

Urban agriculture is steadily growing in popularity.

Ranging from community gardens to food cooperatives to vertical greenhouses, urban agriculture’s popularity stems from its ability to build community capacity, create local businesses and jobs, provide health benefits, strengthen rural-urban relations, support social movements, and contribute to local food security.

Outlined below are three urban agriculture initiatives that play an important role in reshaping community food systems. All three are sharp-edged arrows in the sustainability quiver:

Oshkosh Food Co-op

In November 2019, the Oshkosh Food Co-op launched a $1.6 million capital campaign to open a grocery store in Oshkosh, Wisconsin. Their campaign obtained pledges and gifts through member-owned loans, donations, grants, and developer/vendor support to achieve its fundraising goal in four months. The co-op is now in a position to construct a thriving, full-service grocery store in the heart of Oshkosh.

The Oshkosh Food Co-op plans to locate on the southwest corner of Jackson Street and Pearl Avenue in the Brio Building — the first of three projects planned by Merge Urban Development in the Marion Road District Opportunity Zone. The site was selected for its high visibility; easy access for bus riders, pedestrians, bikers, and boaters; and plentiful parking. The location is also classified by the U.S. Department of Agriculture as a “food desert.” Generally speaking, these are places where residents do not have ready access to healthy and affordable foods. The Food Co-op will lease 10,000 square feet on the first level, using 6,500 square feet and subleasing the remaining space. Groundbreaking is scheduled for Spring 2020.

Food Co-Op Initiative Development Model

To ensure success, the Oshkosh Food Cooperative is adhering to the Food Co-op Initiative’s Development Model (4 in 3). The development model provides a structure for planning and organizing the process of creating a new food co-op. The model’s four cornerstones are: Vision, Capital, Talent, and Systems. The cornerstones encompass the three stages of food co-op development: Organizing, Feasibility and Planning, and Implementation. Building the grocery store, hiring staff, and satisfying owner/member needs will be the first order of business for the immediate future.

Once open, the co-op will provide a year-round market for local farmers. The grocery store plans to source approximately 20% of its produce and goods from Northeast Wisconsin.

TigerMountain Foundation

The TigerMountain Foundation (TMF) in South Phoenix seeks to empower communities to better themselves from within. Central to this concept is asset-based community development that builds on existing strengths and brings individuals, associations, and institutions together to realize and develop their potential.

Urban agriculture and landscaping are central to the TMF mission. They are renowned for working with formerly incarcerated individuals and hardened persons exhibiting high-risk behaviors. TFM provides applied mentoring that teaches participants how to work in their community gardens (Garden of Tomorrow, Spaces of Opportunity Garden) and on their landscaping crews. Produce is sold at local farmers markets. Specialty crops are grown for area restaurants. Landscaping services are provided to local residents and businesses. Special emphasis is placed on developing a strong work ethic, strengthening entrepreneurial knowledge, and improving financial literacy.

In addition to producing sustainable food for the local economy and creating a sense of community, TMF is credited with launching more than 1,000 entrepreneurs in various businesses.

Vertical Harvest

Vertical Harvest is dedicated to growing fresh local food and jobs in urban communities.” So reads the banner on the company’s website. Operating in the heart of Jackson Hole, Wyoming, the firm operates in a three-story, state-of-the-art, hydroponic greenhouse that grows 100,000 pounds of produce each year. That’s equivalent to the food yield on ten acres of traditional farmland. This allows the company to grow produce year-round despite the challenges posed by Wyoming’s harsh winters.

Locally-grown, fresh vegetables are sold to Jackson area restaurants, grocery stores, and directly to consumers at MARKET @ Vertical Harvest. This direct farmer to consumer retail store is located in their greenhouse facility. Patrons also have the option of purchasing locally crafted foods and gifts from around the Jackson Hole area.

Best of all, Vertical Harvest collaborates with Cultivate Ability to produce jobs, internships, and educational opportunities for individuals with intellectual and physical disabilities. The work of more than 15 local Wyoming residents with disabilities is organized under the tenets of Customized Employment, signifying an employee/employer relationship that meets the needs of both parties.

The company fields inquiries from cities around the world and plans to develop seven greenhouses in different locations around the country in during the next five years. The first greenhouse expansion project is scheduled to open in Fall 2020.

Sustainable Communities Innovation Challenge

In Summer 2019, Vertical Harvest was awarded a $500,000 contract through Fannie Mae’s Sustainable Communities Innovation Challenge. The open competition is part of a two-year, $10 million commitment by Fannie Mae to generate innovative ideas that address the nation’s affordable housing crisis. Contract awardees were chosen to create housing opportunities that are safe, sustainable, and affordable.

Vertical Harvest’s proposal calls for the preparation of a feasibility study that explores the potential for vertical farms at affordable housing developments in Metro Chicago. The goal is to improve food security and nutrition, while promoting holistic community wellness. Determining which greenhouse model can be integrated into the developments, and what products best serve the Midwest’s largest metropolis, will be focal points. The study will also look at complementary programs that might be incorporated into greenhouses and provide additional community benefits. Reports indicate the feasibility study will be completed in Summer 2021.


Each of these urban agriculture initiatives hold the promise of reconnecting the farmer and consumer, while making a positive impact on society.

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If You Pay Them, They Will Come

Photo by Morgan Lane on Unsplash

If you pay them, they will come.

According to Global Workplace Analytics, there are 5 million remote workers in the U.S., which makes up 3.6% of the workforce. Moreover, remote work has grown 173% since 2005, some 11% faster than the rest of the workforce and nearly 47 times faster than the self-employed population. This is before the COVID-19 pandemic took effect. At the same time, there are 44.7 million borrowers with a total student loan debt of $1.64 trillion, far in excess of total credit card debt and auto loans. Community leaders at the forefront of attracting talent are taking note. They’re offering incentives to attract and retain skilled workers as part of their economic and workforce development efforts.

Local and state programs that pay people to move include:

Vermont Remote Worker Grant Program

Starting in 2019, Vermont’s Remote Worker Grant Program offered $10,000 over two years to eligible, out-of-state remote workers who are willing to relocate to the “Green Mountain State.” Civic leaders recognized the state’s population is aging faster than the rest of the U.S. (Vermont has the third highest median age at 42.7 years, compared to the national average of 37.8 years). Each qualifying new resident receives $5,000 a year, which can be put towards their actual relocation costs or employment-related expenses (computers software/hardware, broadband access/upgrade, membership in a co-working or similar work space).

The Vermont Legislature allocated $500,000 in grant funding, which was completely disbursed to program recipients by year’s end. Applications are not being accepted for 2020, while the Agency of Commerce and Community Development (ACCD) and Legislature take a step back to evaluate the effectiveness of the program. Stay tuned for updates.

Tulsa Remote

Another standout in the movement to attract remote workers is Tulsa Remote. Launched in November 2018 by the George Kaiser Family Foundation, the program is looking for 250 additional remote workers this year. Approved applicants receive $10,000 that is split between relocation expenses and a monthly stipend, with the remainder paid at the end of the first year. Participants also receive a one-year membership at a local co-working space, assistance with securing suitable housing, and community-building opportunities. Tulsa’s exceptionally low cost of living, short commutes, and affordable housing are major assets and offer a competitive advantage in comparison to other major cities.

Live Detroit

Several years ago, Live Detroit offered new residents up to $20,000 in the form of a forgivable loan that would go towards purchasing their primary residence. Eligible applicants needed to locate in Downtown Detroit or one of several neighborhoods in the central business district. They were also required to work for a specific company. The program ended in 2016, but the Downtown Detroit Partnership recently announced it is working on the next iteration of programming and expects to launch a revamped initiative in 2020.

Choose Topeka Talent Initiative

Approved in December 2019, the Choose Topeka Talent Initiative provides up to $15,000 for prospective home buyers and $10,000 for renters signing a one-year lease for relocating to their community. “Choose Topeka was created with the intention of investing in employees to live and work in Topeka and Shawnee County, so that we may foster an ‘intentional community,’ one of community support builders,” writes the Greater Topeka Partnership. Choose Topeka matches employer funds for people who are willing to live and work in the state capital. The financial rewards are sweetened with gift cards to local restaurants and attractions, discount memberships to gyms, and other incentives.

Kansas Rural Opportunity Zones

You can choose to live in one of 77 Kansas Rural Opportunity Zones that offer the following incentives to new residents: (1) Kansas state income tax waivers for up to five years (sunsets in 2021); and (2) Student loan repayments up to $15,000 over 5 years.

Opportunity Maine Tax Credit

Relocate to Maine and the State will reimburse your student loan payments through the Opportunity Maine Tax Credit. Out-of-state workers must have earned their bachelors or associates degrees after 2015 in order to qualify for this benefit, which points to a target audience of young workers. Existing residents who earned a degree after 2007 and before 2016 from a Maine school also qualify for the tax credit. Generally speaking, workers are able to deduct the total amount of money they paid in student loans for the year from their state income tax bill.

Newton Housing Initiative

For single-family homes built in 2020 and 2021 (valued at $180,000+), the City of Newton Housing Initiative provides a $10,000 cash incentive and “Get to Know Newton” Welcome Package. Homes valued between $100,000 – $180,000 qualify for a $5,000 cash incentive.

Downtown Housing Incentive Program

The City of Niagara Falls Downtown Housing Incentive Program is willing to help qualified applicants pay their student loans — up to $6,984 over a period of two years. Applicants must be willing to live in the Downtown Niagara Falls target area, which is in walking distance of Niagara Falls State Park and the Niagara Gorge.

Come Home Award

In Michigan, the Community Foundation of St. Clair sponsors the Come Home Award program. The Foundation seeks to reverse the region’s talent drain by offering recent Science, Technology, Engineering, Arts, Math (STEAM) graduates up to $15,000 to help pay off remaining student debt. Approved applicants are required to secure a job or create their own business within 120 days of receiving the award.

WORKNP.com

North Platte, Nebraska offers local employers up to $5,000 in matching funds to recruit new talent. Qualifying worker incentives for WORKNP.com include relocation expenses, down payments or deposits, equipment purchases, help with student loan repayment, specialized training certificates, and other expenses.


Fueling the relocation competition are labor force statistics and general demographic trends. People are flocking to the Sunbelt — most notably in states like Arizona, Florida, and Texas — and locating in cities like Phoenix, Miami, and Dallas. They’re moving from the Northeast and Midwest in search of affordable housing and better job opportunities. This is consistent with the decades-long domestic migration pattern in the U.S., where moves to and from the South and West dominate. Hence, the advent of economic incentives in low-growth areas to enhance the availability of skilled workers, the site selector’s most important location criteria.


Editor’s Note: The U.S. Census Bureau provides data products on domestic migration at the state, regional, and county level. For more information, click on: America Counts.

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