Rural Matters©

News and Economic Developments from the Ground Up

Vol. 8 by Sheilah Rogers August, 2009

 From “The New Crucible of Innovation”, a presentation by Brian Dabson/RUPRI to the Federal Reserve Bank of Kansas City in April, 2009

This is an extraordinary time for rural America to make new contributions to national prosperity in four main areas:  

• Growing and processing food – quantity, quality, and sustainability
• Energy independence – extractive and renewable
• Realizing economic value of nature’s services - stewardship
• Protecting and managing rural experiences – natural, cultural

 And the three powerful strategies:

•  Regionalism – cooperation and collaboration across jurisdictions, sectors
•  Assets – building on unique strengths, triple bottom line
•  Entrepreneurship – conversion of assets into economic opportunity

Editorial Comment: The ideas expressed above read like economic developments in Mendocino County during recent decades. An example of each in order:

• Farmer’s Markets throughout the county are supplied largely by local small farms and ranches and the diversity of products is growing
• Feasibility studies are being conducted to assess the potential for biomass and pellet manufacturing
• If initiated these technologies will contribute to fire safety and forest stewardship
• Walking trails along the coast and in the Ukiah Valley continue to be developed
• The Six Targets of Opportunity are recognized as job growth areas in a region that includes Humboldt, Del Norte, Siskiyou, Trinity and Mendocino Counties
• Transition to a green wine industry continues to grow
• Entrepreneurship is alive and well in the county despite rather modest resources to support fledgling entrepreneurs – small and microbusinesses are clearly the economic mainstay of rural communities; in Mendocino County, they account for 85% of the jobs

Rural Business Enterprise Grants (RBEG) Program:
The RBEG program provides grants for rural projects that finance and facilitate development of small and emerging rural businesses. To assist with business development, RBEGs may fund a broad array of activities. The House and Senate included $38.7 million in its 2010 budget for the RBEG program, the same as President Obama's budget request.

Artisans As An Economic Force

It is not unusual for rural American communities to be defined by artisan activity - think Taos, New Mexico or Saugatuck, Michigan or Berea, Kentucky. For goodness sake, think Mendocino County, California. Fine artists and crafters along with performing artists abound here. 

We can wonder why....maybe it's because of the rich heritage and inspirational beauty of the place. Maybe it's because artists want room to move and breathe and see the sunset and the moonrise and a sky full of stars - we've got that. Maybe it's because there aren't that many jobs here. Indeed, many Mendocino County artists are intent on making a living or at least adding to family income through their arts.

So, it has been interesting to read a research report from the Institute for the Future that describes the re-emergence of artisans as an economic force in America www.intuit.com/futureofsmallbusiness. An introduction to the report can be found in the June edition of Rural Matters in the newsletter section of this website.

Once again, Mendocino County is ahead of the headlines and will certainly be a key player in a 21st Century partnership of the arts and economic activitiy. The report cites the rapid growth of small and personal (one person) businesses and imagines that artisans will create new organizational structures that provide greater opportunities for work-life balance.

The relevance to Mendocino County artisans continues with the recognition that small businesses, because of their size and agility, are well positioned to serve niche markets - those highly targeted, customized products that artisans create for customers with specific requirements. There are indicators that small business and large corporations will colloborate more in areas such as sales, marketing and innovation. Indeed, this level of activity will continue to grow as big business, yes, even corporations, look outside for help with innovation.

The juxtaposition of this thinking with the naming of Niche Manufacturing as one of the six industrial Targets of Opportunity on the North Coast - those industries that show the most promise for job and firm growth, wage increases, regional competitiveness and career potential - deserves further discusssion. This looks like real economic opportunity from a base that we already have - the artisan base. Further thoughts are welcome.