06-B PEDC Budget 2007-2008 - Laserfiche WebLink

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Lamar County - Paris Economic Development Plan An economic development program is concerned with creating new companies which, when they evolve, will be contributory in nature. They will eventually sell their products or services outside the area and will not be dependent upon the local economy. They will import wealth to the area. There are several elements relating to a "Start-Up" program. Facility or Incubator The most important feature is to have a facility in which a company is formed and a product or service is developed. The space provided to a company is usually relatively small, 500 to 2,000 square feet, and the tenants typically share equipment and machines. It is in the incubator that the company develops its products or service, determines the market, and raises the capital to create the business. The rent to the company can be subsidized; however, the trend is not to reduce rent, but to provide other services. Quality Counseling Many great ideas never find their way to the market place as the individual has no idea how to do it. Additionally, most "ideas" are not great, and have no market potential. One of the most important features of successful start-up programs is the advice and counsel by individuals with experience on how to take a new idea and cause a company to be created. The counseling involves examining the marketability of the product or process, running patient searches, teaching the principles of how to run a business, and explaining how to be an "entrepreneur." University Relationship Typically the most successful Start-Up programs are in communities which have a relationship with a university or junior college. The new company is able to interface with experts in the field the company is pursuing, accessing the latest technology and ideas. Many universities will partner with the incubator start up program, allowing access to equipment and student assistants. Venture Capital In order for the company to begin in the incubator or to expand outside, venture capital or business financing needs to be available. Recommendations: Long term economic growth for most rural areas will be dependent upon the expansion of its existing industry and the creation oflocally grown industries. As a result, Paris needs to have an active, professionally managed start up program. The community needs to complete the following: . Secure funding for the purchase of an existing or the construction of a new 10,000 square foot building which will serve as an "incubator." Paris Economic Development Corporation Page 13