Thursday, November 30, 2006

Small Companies and Economic Development

Cities have a vital role to play in economic development – especially in forming and growing start-ups. It’s work that’s often misunderstood or overlooked – but it’s potential to change the fortunes of a city should not be overlooked – especially as the ability to do business globally is rewriting companies investment and business strategies – often to the detriment of cities employment base.

The solution is encouraging entrepreneurship and companies that define the products and own the relationship with the customer. It’s also a big step from courting existing businesses with tax incentives and the promise of cheap labour.

Cities need to understand that by setting the right conditions they can increase company formation without spending much. Those conditions:
– tools to help people connect
– mechanisms to turn information into knowledge
In a nutshell databases and discussion that leverages the self interest of potential entrepreneurs to move form concept to company – and from company.

Increasingly it will in turning idea in companies that can define and connect with the market that will define a cities economic prospects – as it’s in this knowledge that value resides – not in the manufacture of the product.

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