Even before the pandemic, cities\u2014large and small\u2014wrestled with ways to build their local and regional economies.<\/p>\n
For some cities, it made sense to engage in what is known as \u2018economic hunting,\u2019 which involves attracting a large corporation to come into the area with a new headquarters, manufacturing plant or warehouse. (Think of the Tesla Gigafactory choosing Reno in 2014, for example, or the 2017 competition for a second Amazon headquarters that garnered 238 proposals.)<\/p>\n
This type of major employer can offer high-wage jobs, of course, but there is also a downside, in that often tax breaks and other financial giveaways are necessary to beat out competitors. And that can make it harder for a city to provide the infrastructure\u2014transportation, education, health care and housing\u2014needed for its residents, as well as the corporation\u2019s new employees.<\/p>\n
This is where the idea of Economic Gardening can make a lot of sense. Rather than bring in an outside company, this \u2018gardening\u2019 approach works with existing local businesses and helps them grow. Specifically, it focuses on \u2018second stage\u2019 companies, or those that generate between $1 million and $50 million in revenue and employ between five and 99 employees, because research shows these companies\u2014when they flourish\u2014actually provide the majority of an area\u2019s jobs.<\/p>\n
Here in Sacramento, the city has offered an Economic Gardening \u20182.0\u2019 edition, a partnership between the National Center for Economic Gardening and Berkeley Strategy Advisors, that provides a $50,000 grant to help business owners implement the recommendations that are designed for them.<\/p>\n \u201cThis pilot program has had so much success, especially given how our businesses made it through COVID.\u201d<\/p>\n Lorrie Clark, project manager of City of Sacramento\u2019s Office of Innovation and Economic Development<\/cite><\/p><\/blockquote>\n<\/figure>\n \u201cThe city has engaged in several strategies\u2014capacity building efforts\u2014to increase the sustainability of local companies\u2014and Economic Gardening is one of those programs,\u201d says Lorrie Clark, project manager of City of Sacramento\u2019s Office of Innovation and Economic Development. \u201cWe launched E.G. 2.0 because we found we can teach businesses \u2026 but if they don\u2019t have the funds to invest in those areas, our efforts aren\u2019t fully executed.\u201d<\/p>\n Sacramento\u2019s pilot program offers a select group of companies 36 hours of services from the NCEG\u2019s team of specialists, with an emphasis on corporate databases, GIS systems, SEO and web marketing tools. The first \u2018cohort\u2019 included local companies such as AHI Construction, Honey and Preservation & Co. The second \u2018cohort\u2019 included, among others, Sagent Marketing, Pachamama Coffee and FPS Autoparts.<\/p>\n \u201cStage 2 businesses are the most important \u2026 because we can help catapult them to the next phase of their business,\u201d says Clark. \u201cAnd Stage 2 companies that scale up are already committed here, they live in the community, they are likely to stay.\u201d<\/p>\n Clark\u2014and the city\u2014believe the addition of BSA and its consultants\u2019 help implementing these NCEG recommendations is key. \u201cWe saw the EG model but thought we could make it better with 2.0,\u201d she explains. \u201cAfter people get some good advice, BSA adds another element of strategy. You have this information, but now you have the opportunity to ask some questions and get some consulting.\u201d This includes one-on-one consultation, technical assistance and funding through implementation.<\/p>\n In fact, it can be compared to starting an exercise regimen. \u201cIt\u2019s one thing to have a workout program, but it\u2019s another thing to have a coach that makes you do it,\u201d she adds. \u201cThis pilot program has had so much success, especially given how our businesses made it through COVID.\u201d<\/p>\n E.G. 2.0 is now accepting applications for a third cohort of local companies. For more information about Economic Gardening 2.0, including whether your company might qualify and how to apply, see http:\/\/www.cityofsacramento.org\/Economic-Development\/Innovation\/Economic-Gardening<\/p>\n<\/div>\n\n
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