HUMBOLDT, Sask. – New shops generate lots of positive press but existing businesses create jobs, said a speaker at a small business development conference here Nov. 8.
Sonja Dahlman, economic development officer in Assiniboia, Sask., said her community launched a business retention and expansion program on the heels of attracting a tire recycling plant in 2000.
While evaluating the successful recruitment of the new plant, they learned about the need to support existing businesses.
“We put all our eggs in one basket and were not paying attention to our existing businesses,” she said.
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While the tire plant created 38 jobs, other town businesses had added 206 new jobs. Dahlman said research shows about 60-80 percent of the jobs come from existing business.
Attracting new business is a far riskier venture than supporting existing commerce, she said.
“Don’t forget about the people who have already made an investment in the community,” she said. “They have more at stake than anyone else.”
While the town has not added major industries since the tire plant, it has continued to see growth in existing businesses.
Dahlman said information from their evaluations are woven into strategies and action plans developed by the volunteer development board and the chamber of commerce.
The board recently identified a need in town for Level 1 and 2 care for seniors. That has since led to the creation of such services and employment for 15 people.
The community now pays regular visits to businesses to offer support and information and regularly showcases excellence through community and business awards.
The principles of strengthening and diversifying the local economy and building local capacity to implement economic development can be tailored to small communities like Assiniboia, whose population sits at 2,700.
It explores business opportunities for non-peak seasons of winter and summer, beautification and development of main streets, education and training for local business and industrial projects and value-added agricultural projects. It targets key employers and helps the town better understand the business community’s needs.
Dahlman said that’s important to know when embarking on attracting new industries.
“You can’t understand what is going to attract someone new to your community until you understand what attracts existing people to stay.”
