economic development

Financial Literacy and Entrepreneurship: Helping high school seniors consider a future in small business

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With only a few weeks of school to go before graduation, Van Wert City School seniors were offered yet another option to consider for their future:  becoming an entrepreneur and owning their own business.

Members of the Van Wert City Schools senior class are required to take Senior Government which includes a segment focused on Financial Literacy within the overall curriculum. The Financial Literacy portion of the class offers several aspects of personal finance, from car loans to credit cards. Missing in the program was an opportunity that involved owning your own business. Last year, Ohio State University Extension and the Wright State Lake Campus Business Enterprise collaborated with school administrators to teach students about starting their own business.

Van Wert HS EntrepreneurshipWith the program finishing its second year, Senior Government teacher, Bob Priest, was again impressed with the students’ interest and excitement about owning their own business. “Van Wert High School government students had the good fortune of participating with two universities at the local level for a three-day introduction to entrepreneurship, business planning and financing,” stated Priest. “I was impressed with the ideas the students created for the betterment of Van Wert, and then they had to put the numbers to their business plan. That was the difficult part. I think students now have a better understanding of how expensive and time consuming it can be to own a business.”

The program involved personal entrepreneurship assessments, identifying local market opportunities, and creating a business plan. In addition to a visit from local entrepreneur and business owner of Firehouse Pizza in Middle Point, the students learned about start-up expenses, on-going operating costs, pricing and break-even analysis.

Post-program evaluation results indicated that 98% of the students felt the program was suitable for graduating seniors and 95% recommended Van Wert High School continue to offer the program. Surprisingly, 48% of the students responded they would be interested in owning their own business in the future. “Because of this, I may now think about starting my own business while I may not have wanted to before,” remarked one of the participating students.

(Submitted by Cindy Leis, County Extension Educator, Van Wert County & Maumee Valley EERA and Van Wert City Economic Development Director)

Shale Development Brings Economic Changes to Eastern Ohio

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Financial Changes in East Ohio 2015-05-21The past four years have seen a world of change in eastern Ohio. With the ongoing development of oil and gas in the region, some of the most historically impoverished counties in the region and the state have begun to experience a significant increase in investment. The corridor stretching from Carroll County to Noble County is the prime development area with 83% of the Utica/Point Pleasant drilling permits issues by ODNR in this six-county region (as of April 25, 2015 – Carroll, Harrison, Belmont, Guernsey, Monroe and Noble).

The recent decrease in oil prices and current low cost of natural gas is cause for concern with local residents and leaders who are hoping for a continued drilling boom. However, even with a potential drop in drilling, the region is likely to see a continued short-term increase in production as midstream infrastructure and pipelines continue to come online.

The drilling activity has been occurring long enough to see some patterns in a variety of local/regional governmental receipts. Consider the following statistics concerning Noble County and the six surrounding counties (Morgan, Muskingum, Guernsey, Belmont, Monroe and Washington).

Lodging Tax:

Lodging tax receipts in the region increased from $1.8M in 2010 to $2.9M in 2013. Revenues increased by 19.2% between 2010 and 2011 and an additional 33.9% between 2011 and 2012. These figures do not include any values from Noble or Monroe counties which did not have a lodging tax in that time period.

Sales Tax:

Within the region, sales tax receipts increased from $30.9M in 2010 to $48.1 M in 2014. Annual increases were 5% from 2010 to 2011, 11% from 2011 to 2012, 12% from 2012 to 2013, and 19% from 2013 to 2014. Belmont increased by 56% between 2010 and 2014, Guernsey by 68%, Monroe by 105%, Morgan by 40%, Noble by 141% and Washington by 32%. The largest dollar increase was in Belmont County from $11.3M to $17.7 M. In Noble County, sales tax receipts increased by 0% between 2010 and 2011, 21% between 2011 and 2012, 56% between 2012 and 2013 and 29% between 2013 and 2014. Dollar increase in Noble County was from $1.1M in 2010 to $2.7M in 2014.

Noble County General Fund:

The general fund balance in Noble County increased from $3.5M in 2010 to $5.8M in 2014. By year, the increase was 7% between 2010 and 2011, a decline of 3% between 2011 and 2012, an increase of 26% between 2012 and 2013 and an increase of 27% between 2013 and 2014.

Noble County Recorder’s Fees:

Recorder’s office receipts as well as sales tax receipts are component parts of the general fund. Recorder’s receipts increased from $4,944 in 2010 to $397,160 in 2014. Annually receipts increased by 3,054% between 2010 and 2011, by 126% between 2011 and 2012, declined by 3% between 2012 and 2013 and increased again by 16% between 2013 and 2014.

Banking Deposits in Noble County:

In addition to these government receipts, banking deposit activity in Noble County was also robust in this time period. Deposits in the county increased from $151M in 2010 to $226M in 2014. Annual increases were 3% between 2010 and 2011, 19% between 2012 and 2013, 19% again between 2012 and 2013 and 3% from 2013 to 2014.

(Submitted by Mike Lloyd, Assistant Professor, County Extension Educator and County Extension Director, Noble County & Buckeye Hills EERA)

Note: Mike will be retiring from OSU Extension on June 30. The impact of his work in Noble County and throughout Ohio has been significant. Extension is pleased that the Noble County Commissioners have continued the partnership and funded the position that will enable this high-value work to continue.

Energize Ohio signature program addresses increasing energy demands

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Energize Ohio 2015-03-25The future requires energy; even more energy than is consumed today. Global energy demands rose by 83% from 283 quadrillion British thermal units (Btu) in 1980 to more than 507 quadrillion Btu in 2010. The 2012 International Energy Outlook Report estimates that by 2020, additional growth in worldwide energy consumption will more than double our 1980 usage and grow to 820 quadrillion Btu by 2040. Why? Much of the growth in energy consumption is occurring in developing countries, where countries with strong, established economies drive steady demand. Second only to China, the United States consumed 18% of the world energy total in 2011, and Ohio ranked as the sixth highest energy consuming state in the nation.

Why is energy development in Ohio important? The availability of affordable energy influences both economic growth and the general quality of life of Ohioans. In 2012 the average per capita energy expenditure in Ohio was $4,265, representing roughly 12 percent of Ohioans’ per capita income.

How is Extension involved in helping to ensure the availability of affordable energy? Utilizing a multi-disciplinary approach, the Energize Ohio Signature Program addresses a wide range of renewable and shale energy education needs including: youth energy education, energy policy, farm energy education, homeowner energy education and sustainable community planning. Energize Ohio curriculum consists of teaching outlines, worksheets, presentation materials, workshop materials, bulletins, fact sheets, marketing templates and evaluation tools available for use by all Extension professionals. Two core initiatives are the current Energize Ohio focus: shale energy and renewable energy education.

Last year, Energize Ohio Signature Program team members engaged more than 1,900 participants in 62 programs throughout the state. New energy-related publications were developed as well, including four fact sheets, two journal articles and one technical bulletin.

Since 2012, the Energize Ohio Signature Program has reached nearly 12,000 Ohioans via 141 programs conducted in 64 of Ohio’s 88 counties. The ultimate goal of these efforts:  To increase knowledge of energy drivers and development that enables best practices and informed decision-making.

For more details related to the Energize Ohio program, please view the 2014 Energize Ohio Signature Program Report.

For more information on energy trends, please view the Trend Research: Energy Sources, Demands, and Cost paper found at the FAES Conversations on the Future of Extension webpage.

(Submitted by Eric Romich, Assistant Professor and Extension Field Specialist, Energy Development)

Extension in the City: focusing on city priorities

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Cities are booming. All across the United States, as well as the world, the urban population continues to grow at historic rates. Currently, 80% of Americans live in an area defined as “urban,” the same as Ohio. Over half of the people in Ohio live in the ten most populated counties, and even larger proportions of people are economically contingent on these urban areas. This creates peculiar urban-suburban-rural dependencies. The connection between these areas leads to an interesting network for Extension programming. Extension is traditionally known as an agricultural-based organization that operates mostly in rural areas, but tries to take a different, more applicable approach when working in urban areas.

Extension in the CityWith 11.5 million residents, Ohio is the seventh most populated state in the nation. Ohio’s six largest cities are Columbus, Cleveland, Cincinnati, Toledo, Akron and Dayton. Ohio’s ten most populated counties are Cuyahoga, Franklin, Hamilton, Summit, Montgomery, Lucas, Stark, Butler, Lorain and Mahoning.

To reach more residents in Ohio’s largest cities, four primary working groups have emerged in Extension to focus on different city priorities. These areas of focus were identified through conversations with various stakeholder groups, supported through campus and national networks, and approached through multi-disciplinary teams and resources. The groups collaborate and discuss programming barriers they face in their cities, as well as new ways to address these issues. While every city in Ohio is unique, these working groups assist one another in more effectively impacting their area of focus.

  • Food & Agriculture in the City: Ohio communities are making the production, processing, distribution, preparation and celebration of food a catalyst for urban neighborhood redevelopment.
  • Health and Wellness in the City: Extension empowers Ohioans with the knowledge, skills and tools needed to make healthy choices, creating healthy people with healthy relationships and healthy finances at every stage of life.
  • 4-H Youth Development in the City: The OSU Extension 4-H Youth Development programming offers educational opportunities in a variety of settings for youth ages 5–19, catering to urban audiences.
  • Sustainable Cities: Extension specialists work with city leaders on economic, environmental and social drivers that impact life in the city.

As these working groups are creating ways to more efficiently reach potential participants, efforts are also being made to better equip our educators in urban areas with tools to reach more people. The goal is to provide them with ways to make their programs more applicable to residents in the cities where they work, as well as facilitating professional development to ensure they are being excellent ambassadors of The Ohio State University, the College of Food, Agricultural and Environmental Sciences and OSU Extension.

To learn more, visit cityextension.osu.edu. This is an emerging effort and your comments, suggestions and participation are all welcomed. If you think you would like to join the OSU Extension in the City team as a core, affiliate/working group or informational member, please feel free to contact James Stiving (stiving.3@osu.edu) or Julie Fox (fox.264@osu.edu).

(Submitted by James Stiving, Program Assistant, Extension in the City/Central Region Office and Julie Fox, Associate Professor, Associate Chair, Director of Central Region and OSU Extension in the City)

Ohio BR&E Program Goes to Purdue

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Each of us plays a variety of roles in the local economy. We are both producers and consumers, and the relationships are many and ever-changing. Understanding our local and regional economies can be challenging, but a Business Retention & Expansion (BR&E) program can help.

Since its inception at OSU in the mid-80’s, the Ohio BR&E program has spread throughout the U.S. and the world as a core economic development strategy. Program curriculum has been delivered or shared  as far away as Guam, Macedonia and Ukraine; and most recently in New York, South Dakota and Florida.

Purdue Train the Trainer January 2015 Civittolo teachingExtension CD faculty Nancy Bowen, David Civittolo and Joe Lucente took it on the road again, this time to Indiana, delivering a two-day train-the-trainer program at Purdue University on January 22-23. Seventeen new regional CD Specialists and Educators from throughout Indiana learned the nuts and bolts of the BR&E curriculum and new “Targeted BR&E” program. This training effort and resulting community programs in Indiana are being supported by a North Central Regional Center for Rural Development (NCRCRD) “Interstate” grant of $5,000.

As part of the “Interstate Grant”, Purdue will be delivering Ohio’s BR&E curriculum as part of a new program being launched in collaboration with the Indiana Office of Community and Rural Affairs, titled the Hometown Collaboration Initiative (HCI). Five communities will be selected to be part of the HCI effort in 2015, with the BR&E program being a major component.

Since 1990, the Ohio BR&E program has been delivered in 80 of Ohio’s 88 counties and 155 communities; helping local officials and residents learn what can be done to help existing businesses and informing better decisions. The Ohio BR&E Program website, including BR&E materials, can be found at: go.osu.edu/BRnE.

(Submitted by Nancy Bowen, Associate Professor and Extension Field Specialist, Community Economics; David Civittolo, Associate Professor and Extension Field Specialist, Community Economics; and Joe Lucente, Assistant Professor and Extension Educator, Ohio Sea Grant Program)

Retail Market Analysis: A key tool in the economic development toolbox

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Retail Market Analysis 2015-01-22It is something that we’ve all seen before. Some downtowns seem vibrant and full of life while others appear to be struggling to hold on. But why? In the United States, over 10 percent of all employed persons (more than 15 million people) are employed in the retail sector. In Ohio alone, over 650,000. While these employees provide a valuable service in retailing (who doesn’t like the hardware, bakery or jewelry stores?), the effects that a healthy retail sector can have on a community are immeasurable. So, what makes them work? We can learn more about this sector of a community’s economy via a Retail Market Analysis study.

What is Retail Market Analysis Program?

Retail market analysis is a tool for identifying retail market trends within a local community. While the analysis focuses specifically on the performance of local retail markets, information on the broader demographic and economic trends within the region is critical to understanding current and future changes in these retail markets. Changes in population, the age and income distributions of the population and the number of people employed by different industrial sectors affect the demand for retail goods within a local community. They are critical factors to be considered in such analyses.

Also important is understanding of the pattern of retail spending within a local community relative to spending in neighboring areas. A sales leakage could indicate that the local demand for a particular product is not being met within the local community, whereas sales surpluses may explain how a local community serves a regional market that actually pulls shoppers in from outside the local area. (How many of us drive some distance to purchase specific items?) Such surplus/leakage estimates provides a means to identify the relative strengths and weaknesses of an area’s retail markets and inform economic development strategies for local communities. A retail market analysis is not a detailed plan of action, but rather provides facts and analysis for input into the community’s decision-making process about future economic development. And whether your retail sector seems vibrant and full of life or is simply struggling to hold on, informed decision making is critical.

To learn more about Extension’s Retail Market Analysis program, contact:

  • David Civittolo (Associate Professor and Field Specialist, Community Economics)
  • Nancy Bowen (Associate Professor and Field Specialist, Community Economics)

(Submitted by David Civittolo, Associate Professor and Field Specialist, Community Economics)

A Word about Water Resources

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No matter who you are or where you’re from, clean water is essential to your daily life. Always has been, always will be.  And yet it’s easy to take for granted. Most of us don’t think much about where our water is coming from or worry about its cleanliness on a daily basis. I must admit I’m biased coming from the Sea Grant world, but I was a bit surprised at how little the topic came up in the Futuring discussions at Annual Conference. Obviously things like economics and education will continue to be drivers of society. But to be able to focus on those major pillars, we need to continue to improve the management of our water resources.

Clean Water 2014-12-18

Photo credit: Ohio Sea Grant

That is precisely the mission of Sea Grant; to provide programs that lead to the responsible use of our water resources through informed decisions. That covers a lot of ground, so we break it down into four main focus areas:

  • Healthy Coastal Ecosystems
  • Resilient Communities and Economies
  • Sustainable Fisheries and Aquaculture
  • Environmental Literacy and Workforce Development

If you have questions on anything Lake Erie related, Ohio Sea Grant has you covered. We’ve recently been in the news for our work on things like harmful algae blooms (HABs) and phosphorus, but we’ve also been hard at work battling aquatic invasive species, creating resilient communities and engaging the next generation of environmental leaders.

OSU Extension Sea Grant Lake Erie Charter Boat Captains

Photo credit: Ken Chamberlain

Personally, I’m currently focused on the Sustainable Fisheries aspect. There are over 650 charter boat captains licensed to fish on Ohio’s Lake Erie, and for many of them fishing is a way of life. Ohio’s charter boat fleet is the largest in the Great Lakes and one of the largest in the world. That fleet is a major economic driver for Ohio’s coastal economies, and a healthy Lake Erie is essential to their success.

We partner with Lake Erie charter captains on a variety of programs throughout the year from youth fishing programs to monitoring HABs. The longest running example is the Annual Ohio Charter Captains Conference. The program covers laws and requirements, fisheries management, best business practices, new technology and equipment, and the health of Lake Erie. We typically see 25% of the licensed captains in attendance, and 74% of responding captains in 2014 stated that information from the conference will help to keep their business going or advance professionally.

The 34th Annual Ohio Charter Captains Conference is scheduled for March 7, 2015 at BGSU Firelands Campus in Huron, Ohio. Contact me (gabriel.78@osu.edu) to learn more about the conference or to ask any questions regarding Lake Erie. For information on Ohio Sea Grant visit ohioseagrant.osu.edu.

Have a happy holiday season, and enjoy the water!

(Submitted by Tory Gabriel, Fisheries Outreach Coordinator, Ohio Sea Grant Program)

Is YOUR community ready to attract new investment?

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While many communities have assets that are attractive to those who currently live, play and conduct business there, do these communities have what it takes to attract new residents and businesses? Major corporations and others may invest millions of dollars in a community and don’t take the decision lightly.

According to economic and community development consultant, Carol Johnson, most communities all say the same things. She says what site consultants and prospects fear most when they visit a potential site is the local team will talk too much and waste their time!

Site Prep 2014-12-18According to Johnson, to be prepared “The local team needs to understand that every facet of your site is quantitatively ranked and each industry, each project will rank you differently.” In other words, the local team needs to convey the unique things they have to offer each individual prospect and be able to prove it. Corporations are obsessed with “risk avoidance” which means the local team must remove any mystery or perceptions of risk.

Successful communities have created a team that includes the local experts in the areas of:  utilities (e.g., gas, electric, water and waste water), industry, infrastructure, workforce, taxation and incentives. It is key that the local team can convey credibility and expertise when responding to prospect needs. It is especially critical that the local team can stand behind their commitments to meet project timelines and ensure project confidentiality.

So where might a community begin? Start first with an understanding of community assets. Second, be able to document these assets – how do the assets meet requirements of the prospect? Third, understand the key drivers of the prospect’s decision. KNOW THEM, UNDERSTAND THEM and CONFIRM THEM several times; prospects often change their minds. Last, understand that prospects make final decisions based on return on investment and their ability to minimize or overcome risk – perceived and real.

Are you SURE your team is ready?  Learn more on this topic at: ohioline.osu.edu/cd-fact/pdf/1504.pdf and ohioline.osu.edu/lines/comun.html#econdev.

(Submitted by: Cynthia Leis, Extension Educator and Van Wert City Economic Development Director)

Informing community planning for shale play impacts

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How do we inform community planning for the impacts related to the shale play in eastern Ohio? One approach is to track key indicator data.

EDA data analysisExtension researchers recently shared the highlights of an advanced cluster analysis focused on manufacturing with community development officials in four EDD’s (economic development districts) within the eastern Ohio shale play. The cluster analysis is one of four analytical steps being conducted as part of an EDA (Economic Development Administration) funded project to inform the overall 25-county region about economic, social and environmental changes, potential implications and strategic directions for sustainable development.

Changes are being tracked quarterly or annually depending on what is being measured using a number of data sets including the Center for Human Resource Research’s enterprise and workforce database and IMPLAN, an economic modeling software program. Social and environmental indicators are also being tracked including school enrollment, housing starts, crime and water quality, using a wide variety of public and private data sources.

The cluster analysis revealed both expected and unexpected trends occurring in the four EDD’s. As anticipated, in the region experiencing the majority of the drilling activity, the vast majority of the 600 or so jobs created between 2010-2013 were in the core and ancillary industries related to shale development. During the same period, the Buckeye Hills-Hocking Valley Regional Development District in the southern-most part of the 25-county region saw a concentration of hiring activity occurring primarily in construction tied to housing and commercial development, most likely due to shale development. Unexpectedly, relatively little or no jobs were created in core or ancillary shale industries in this district.

Building on the cluster analysis findings, researchers are now embarking on an industry capacity assessment to discover linkages and opportunities for sustainable growth in value added manufacturing in the four regions. A recently published article provides more information on the project:  cfaes.osu.edu/news/articles/project-helping-ohio-communities-avert-bust-after-shale-boom.

(Submitted by Nancy Bowen-Ellzey, Extension Field Specialist, Community Economics)

Extension seeks grant funding to improve community services and infrastructure

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What service and infrastructure improvements would benefit your community?
Imagine the possibilities . . . now go for it!

Decreasing local government funds coupled with increasing material and equipment costs require government entities, first responders and non-profit organizations to seek grants to cover the expenses of specific projects and programs.

Little Muskingum VFD

Little Muskingum VFD recently purchased
this 4WD Rescue Squad
with funding from various grants.

Recent Extension efforts in Washington County have resulted in grant funding for new fire safety equipment.  The  Little Muskingum Volunteer Fire Department, a rural volunteer department, was able to purchase a new four-wheel drive rescue squad. Community Development Block Grant, Sisters of St. Joseph Charitable Fund, Marietta Community Foundation and numerous businesses and individuals contributed to the existing department funds for this life-saving equipment that serves over 1700 residents in a four-township area.

Economic growth and development relies on infrastructure to expand community resources. Financing for local public infrastructure improvement is provided by the Ohio Public Works Commission (OPWC). Emergency road and bridge repair assistance for qualifying projects that pose an immediate threat is a part of the OPWC funding program.

In times of federal and/or state declared disasters, the Federal Emergency Management Agency (FEMA) and Ohio Emergency Management Agency (OEMA) offer communities financial assistance in recovery from damages due to disasters. Through Emergency Management Performance Grants-Special Projects Program (EMPG) our county was able to renovate an existing building for a state-of-the-art Emergency Operations Center. During disasters, this center coordinates the response activities of multiple agencies.

Grant funding is competitive and requires research, planning, organizing and writing. OSU Extension professionals are available to help you learn more about grant writing.

More information on the grant opportunities mentioned above is available at:

(Submitted by Darlene Lukshin, Program Specialist, Washington County & Buckeye Hills EERA.)