Hugo Launches Business Retention Program
HUGO - More than 40 business and community leaders met in the Oneka Room at City Hall last week to gear up for the City of Hugo’s participation in an economic development program to prepare for the city’s future. The meeting was one of two held in the last few weeks as the Business Retention and Expansion Program moves ahead.
The purpose of the program is to demonstrate support for local businesses, help solve immediate business concerns, increase local businesses’ ability to compete in the global economy, establish and implement a strategic plan for economic development, and to build community capacity to sustain growth and development.
Businesses are the economic backbone of almost any community, and the program draws on the talents of volunteers who are well-networked to help canvass existing businesses to identify immediate needs and help connect business owners and managers with valuable resources that are available to them.
Those volunteers will be visiting 70 businesses between now and the end of October. During each visit, each team of two volunteers will use a ten-page questionnaire to gather information acabout each business. Training sessions have been held to help prepare the volunteer visitors for their interviews.
All information gathered through the surveys will be strictly confi dential.
Many of Hugo’s 270 businesses are home-based, and the effort will include a representative sample of those businesses as well as larger companies. Businesses were grouped by type and were selected randomly for participation in the interview process.
“The whole process is to make plans for the future, and to help the community grow,” coordinator Bruce Schwartau from the University of Minnesota Extension told attendees.
Existing businesses are the best source of information on the strengths and weaknesses of the local economy.
The program recognizes that a healthy climate for existing business in turn attracts new business, helps promote revitalization of a struggling main street business communities, and creates an entrepreneurial culture.
“Up to 80% of new jobs are created by existing businesses,” Schwartau said.
Indeed, statistics from the U.S. Department of Labor support that: in 2006, three times as many new jobs were created by expansions of existing firms than from start-up companies.
The effort is sponsored by Connexus Energy, Xcel Energy, Postal Credit Union, Lake Area Bank, Premier Bank, the Hugo Business Association, Reimer Photo and WSB and Associates.
The City of Hugo was also the recipient of a grant to help fund the effort.
The program is receiving technical and research support from the University of Minnesota Business Retention and Expansion Strategies Program.
The following individuals make up the BR&E Leadership Team: U of M Regional Extension Educator Bruce Schwartau, as BR&E consultant; Minnesota Department of Employment and Economic Development Business Service Specialist Beth Jameston, business resources coordinator; Hugo Associate Planner Rachel Simone, overall coordinator; North Country Auto Body owner Galen Carlson, visitation coordinator; resident Pat Nygaard, milestone meeting coordinator; The Citizen’s Managing Editor Deb Barnes, media coordinator; and City of Hugo Economic Development/Parks Intern Shayla Syverson.
Questions about the program may be referred to Rachel Simone at Hugo City Hall, 651-762-6304.