Business Intelligence
November 23, 2011
Venture Forum Event Highlights Economic Development Strategy and Local Businesses
Business First staff recently attended a Venture Forum luncheon where our very own Sara Dunnigan presented the results of a new study designed to help the Greater Richmond Partnership update its target clusters. Also present at the luncheon was a panel of local business executives who talked about growing their businesses in Greater Richmond.
During her presentation, Sara Dunnigan likened GRP’s new study to a marketing study typically conducted by a for-profit business – except GRP’s product is the Greater Richmond area and its customers are local and prospective businesses. Dramatic economic changes in the region since the last recession made it necessary to take a step back and reassess strategy. The five new target clusters adopted by GRP include Supply Chain Management, Advanced Manufacturing, Finance and Insurance, Professional and Creative Services, and Health and Life Sciences. Dunnigan reviewed the region’s strengths and the justifications for pursuing these five clusters, including the region’s skilled labor force and a critical mass of local businesses already operating in these areas. The targets will help GRP direct regional economic development efforts and resources toward those industries that are most likely to grow and succeed on a large scale in our region. However, Dunnigan made it clear that if your industry is not represented by one of the five target clusters, it does not mean it is unimportant.
The discussion panel that followed was made up by five local executives from businesses representing four out of five of GRPs new target clusters. The executives represented UPS, Big River Advertising, Elephant Insurance, Mobelux, and McKesson. These companies run the gamut, ranging in size from Fortune 500 to 6-person shops. Many nuggets of business wisdom were discussed, with just a few listed below.
- It is possible to grow during a recession. Many panel members mentioned that their companies were now able to run leaner due to process and technology innovations implemented during the recession. Elephant noted that consumers are now more price-sensitive, which was something they were able to take advantage of as a new competitor in the insurance market.
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The economy is interconnected. The health of customers, whether they are consumers or other businesses, directly impacts the growth of the panel businesses. Issues such as the recession, availability of capital, and even the shrinking reimbursements for health care providers have long-reaching effects.
• Customers are in charge, not companies. Providing good service is not enough anymore. It is necessary to innovate and give customers more features and more options to keep them happy. - Most growth happens organically. Some of the businesses mentioned mergers and acquisitions as a possible source of growth, but organic growth was continually mentioned as the preferred method.
The panelists were overwhelmingly positive about Greater Richmond’s business environment, but did mention some challenges when prompted.
- Encouraging entrepreneurship and innovation at an early age
- Attracting young talent to the city
- A mismatch between the skills in the workforce and those needed by businesses
- A lack of amenities along the James River
- Poor transit connections between the counties and the city
Overall, the Venture Forum event featured some amazing information about both regional economic development strategy planning and some growing local businesses. To learn more about the Venture Forum and upcoming events, visit the organization’s webpage at www.richmondventureforum.com.
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Greater Richmond Partnership, Inc.
The Greater Richmond Partnership is a public-private economic development agency committed to helping to grow the Greater Richmond economy through the attraction of high quality jobs and new capital investment, the retention of existing businesses, and the continued improvement of the region's business climate.