An interesting new Urban Institute analysis examines how Federal agencies are supporting effective economic transitions in coal impacted communities.  In this case, the researchers assessed the US Economic Development Administration’s Coal Communities Commitment effort which invested around $300 million to support community transition efforts.

The study finds some interesting patterns in program investments.  Most funds—around 75%–backed capital infrastructure investments; remaining funds primarily supported “human capital investments” such as planning, workforce training, and the like.  They also found that relatively fewer dollars were invested in rural places and in regions with higher levels of persistent poverty.  The  researchers note that, as with many Federal programs, EDA’s transition dollars often fail to reach the places that need the most support. Since EDA funds are among the most flexible federal funding tools, we can likely suspect that other federal programs likely show similar investment patterns. 

The researchers conclude with a common, yet critical, recommendation: Invest more in capacity building so that lower capacity regions can effectively compete for and win these federal grants. We are going to need new approaches and program models if we want to get essential funding to the places most in need.

My colleagues at NC IDEA introduced me to an interesting new report from North Carolina’s Secretary of State’s Office (and it’s not often that you see something interesting from state secretary offices, but NC’s office is an exception).  The study, The Potential and Success of North Carolina Startup Businesses, uses state data to assess the state of North Carolina’s small business economy.  Specifically, it looks at “self-sufficiency” among small business, which the researchers define as businesses that generate $50,000 or more in annual revenue.  Sadly, many US and NC businesses don’t meet this hurdle, and the study assesses how the state’s economy would benefit if more firms did meet this revenue goal.  

The researchers found that 37% of NC small businesses are self-sufficient, and an additional 47% are aspirational, i.e. they expect to meet this revenue goal.  Interestingly, they also find that if just 5% of aspirational firms achieve self-sufficiency, they could create more than 24,000 new jobs across North Carolina.  That’s a big and promising economic impact. 

I’m a fan of this report because of its interesting findings, but there’s more at work at here.  Across the US, Secretary of State offices regularly capture data on small business, via business license and tax registrations.  Yet, this information is rarely used to guide economic development policy.  In North Carolina, Secretary of State Elaine Marshall is seeking to change these legacies, and her agency’s Rural RISE NC initiative is an excellent model for what other states can do.  More states need to step like our friends in NC!