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There is Another Game in Town….and she is called Elsie

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You might be forgiven for thinking that traditional ‘economic development’ is the only game in town.  Shopping centres, arenas and enterprise zones, vocational education and training producing a workforce to meet the needs of employers.

This kind of stuff has been the mainstream of economic development for as long as I can remember.

But there is another game that WE can play..

One which relies less on ‘attracting’ talent and wealth from outside and more on developing the passion, aspiration and skills of the people that already make up our communities.  It works with what we have got, starting from where we are.

It relies on the ability of local people to support each other, with knowledge, skills, networks and wherever possible custom.   Instead of looking to buy ‘star players’ to join the team we instead set up an academy, a place and a process in which we can explore our potential and find the people and other resources that we need to move our projects forward.

This is where Elsie comes in.

Leeds Community Enterprise Accelerator (Elsie) is a project designed to build the capacity of ordinary people in the Leeds community to shape their own future according to their own hopes and aspirations.  It starts with what we have, and works with what we have got.  The project needs you to get involved.  It runs on a ‘pay what you like but free is fine policy’ so cost should not be a barrier to getting involved.

So, please, if you want to see another game in town when it comes to developing an economy that serves our community have a look at Elsie and get involved.

What are You Working For? The Gospel of Consumption

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[A modern economist] is used to measuring the ‘standard of living’ by the amount of annual consumption, assuming all the time that a man who consumes more is ‘better off’  than a man who consumes less.  A Buddhist economist would consider this approach excessively irrational: since consumption is merely a means to human well-being, the aim should be to obtain the maximum well-being with the minimum of consumption… Modern economics, on the other hand, considers consumption to be the sole end and purpose of economic activity. – EF Schumacher

Poverty is not just the absence of money; it is also the absence of a belief in the future…What we need for real prosperity is what money can’t buy…. Block and McKnight

By the late 1920s, America’s business and political elite had found a way to defuse the dual threat of stagnating economic growth and a radicalised working class, in what one industrial consultant called “the gospel of consumption” – the notion that people could be convinced that however much they have, it isn’t enough.  President Hoover’s 1929 Committee on Recent Economic Changes observed in glowing terms the results: “By advertising and other promotional devices…a measurable pull on production has been created which releases capital otherwise tied up.” The tied up capital was savings.

They celebrated the conceptual breakthrough: “Economically we have a boundless field before us; that there are new wants which will make way endlessly for newer wants, as fast as they are satisfied.” In other words there is no end to satisfaction, or it is a way of promoting dissatisfaction as the basis for higher levels of consumption and production.  – Jeffrey Kaplan

And the late George Carlin makes our stuff funny

[youtube=http://www.youtube.com/watch?v=MvgN5gCuLac]

Economic Gardening or Economic Hunting?

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Economic Gardening and Economic Hunting are two very different approaches to developing an enterprise culture.

An economic gardening approach sets out to create jobs and entrepreneurial activity by investing in local people and their talents, cultures, passions and skills.  It is an endogenous “arising from within” approach to community and economic development.  The starting point for economic gardening says that ‘in this community we have all that we need to build a vibrant and sustainable future’.  It may need careful nurturing to help it thrive but the seeds of our future success are already sown.

The key tools of economic gardening include:

  • building open and accessible networks for potential and current entrepreneurs that foster the exchange of ides and collaboration
  • signposting to existing and continually improving support  services that help local people on their enterprise journey
  • locally available, convivial and very low (preferably no) cost coaching support to help local people to nurture their dreams and aspirations and to believe in their ability to develop them
  • access to commercial finance for local people with investment ready business ideas
  • support services that recognise that everyone has the potential to become more enterprising and don’t just work with those that are already entrepreneurial.

This contrasts with economic hunting which sets to create jobs and entrepreneurial activity by attracting investment and employment into a community from outside.  The starting point here is one that says ‘our community is deficient.  We lack the entrepreneurs to create employment so we have to attract them from elsewhere.  Then perhaps some of the entrepreneurial pixie dust will rub of onto local people.  And if it doesn’t, well at least we will have attracted entrepreneurs who will provide them with jobs.’  This is an exogeneous approach to community and economic development.

The key tools of economic hunting include:

  • the creation of facilities and resources to attract companies or ‘creative class’ members to set up their homes and businesses in our community (NB usually these resources are beyond the means of many local people to access).  If you are in a facility that serves a ‘much better cup of coffee at a higher price’ than anywhere else in the neighbourhood, or if many local people are priced out of your facility, then there is a strong chance that it is the product of economic hunting rather than gardening.
  • the development of inward investment teams and budgets to enable local authorities and regional development agencies to negotiate ‘sweetened’ deals for employers to locate in their communities
  • support services that focus almost exclusively on the ‘already entrepreneurial’ as those who have the potential to create wealth and employment for the rest of us.

Historically most of the investment has gone into economic hunting strategies.

There has been a rise in interest (if not yet investment) in economic gardening.  I see no fundamental reason why the two can’t co-exist in the same community, but they are not always comfortable bed fellows.  Economic hunting usually means changing things to make them convivial to outsiders (better coffee, better carpets and sexy furniture).  Economic gardening means making things really convivial to local people, affordable, local and accessible.

Often community based enterprise development programmes struggle to help local people to access the business support infrastructure that was designed as an economic hunting tool.  It is not designed to be convivial to local people, but to that special breed of entrepreneur from out of town who will pay £3.40 for a posh coffee and £20 an hour to hire a meeting room.  More often than not such facilities fail to win in either of these two market places.

So which tribe do you belong to?  The hunters or the gardeners?

What do we want Enterprise to do for us?

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This is an important question and one that is rarely given serious consideration. Of course more entrepreneurs means more wealth means better communities. Right?

Perhaps. Perhaps not.

In the current context most enterprise programmes focus on finding individual entrepreneurs and helping them to find ways of making their business ideas work. There is a good chance that as soon as this happens the entrepreneur will find their new found success gives them the option of leaving the community for a more prosperous one. This is because their success has been in spite of the local community and not because of it. The community is something to be escaped from. This approach to enterprise in the community plays up the role of the entrepreneur as individualistic hero(ine) fighting against the odds. If it succeeds then the community is actually weakened as successful people are able to leave.

So if we want enterprise to enable individuals to succeed and escape ‘deprived communities’ then this sort of individualistic approach to enterprise can work.

However if our goal is to transform communities through enterprise then we need to adopt very different models of enterprise development. We need to develop a context in which enterprise can succeed BECAUSE of the community context and not in spite of it. Where success ties enterprise into the community rather than provides a spring board out of it. Only when we learn how to nurture this type of enterprise development will it become a tool to really transform communities as well as individuals.

These transformational approaches emphasise enterprise as a social phenomenon. They bring people together to collaborate on possibilities and to develop stories of hope and change. They emphasise the role of the local community in supporting enterprise with patronage but also with advice, support, guidance and introductions. They build enterprise services where local people can succeed in making progress because of their communities rather than in spite of them.

If we want to succeed in transforming communities through enterprise then this needs to be given some serious consideration.

The ability of projects to build social capital and to raise the collective understanding of enterprise and the role of the community in supporting it, as well raising the ability and potential of individual entrepreneurs will be key.

So what do we want enterprise to do for us?