The expansion of ethnic minorities evokes policy debate about their impact on the local economy, driving a need to measure their effects. We employ the confidential US Census data to investigate drivers of local economic performance with emphasis on the role of Latino-owned businesses (LOB) on convergence. The model also includes a number of controls. The model produces direct, indirect, and total impact estimates, and expected values for the non-LOB controls. The estimated total impact of LOB employment on county-level average annual growth rates is significant and positive, but a rurality interaction carries the opposite sign, such that the total impact in rural areas is negative.
Read the full article here: https://link.springer.com/article/10.1007/s00168-019-00942-x
Access to financial capital is vital for the sustainability of the local business sector in metropolitan and nonmetropolitan communities. Recent research on the restructuring of the financial industry from local owned banks to interstate conglomerates has raised questions about the impact on rural economies. In this paper, we begin our exploration of the Market Concentration Hypothesis and the Local Bank Hypothesis. The former proposes that there is a negative relationship between the percent of banks that are locally owned in the local economy and the rate of business births and continuations, and a positive effect on business deaths, while that latter proposes that there is a positive relationship between the percent of banks that are locally owned in the local economy and the rate of business births and continuations, and a negative effect on business deaths. To examine these hypotheses, we examine the impact of bank ownership concentration (percent of banks that are locally owned in a commuting zone) on business establishment births and deaths in metropolitan, micropolitan and non-core rural commuting zones. We employ panel regression models for the 1980-2010 time frame, demonstrating robustness to several specifications and spatial spillover effects. We find that local bank concentration is positively related to business dynamism in rural commuting zones, providing support to the importance of relational lending in rural areas, while finding support for the importance of market concentration in urban areas. The implications of this research are important for rural sociology, regional economics, and finance.
Read more here: https://ideas.repec.org/p/cen/wpaper/18-34.html
This article uses 127,000 observations from three confidential Census microdata sets at theindividual firm and establishment level to investigate Latino-owned business survival. The merged microdataallows us to control for a wide array of personal, business, and regional characteristics. The analysis is basedon hazard model. Relative to base categories, we find the following decrease in the odds of survival: Latina-owned, Puerto Rican owned, and selling to the federal government. Owner education and low barrier sectorshave no effect, while start-up from personal savings increase the odds by 4 percent. The findings informways to expand regional economies through businesses operated by Latinos.
Read more here: https://rrs.scholasticahq.com/article/7933-factors-associated-with-latino-owned-business-survival-in-the-united-states
Here is some new research authored by me. The article uses over 100,000 observations from limited-access and nationally representative US Census Bureau microdata sets to test determinants of employment growth among Latino-owned businesses (LOBs) in the Unites States. We draw variables from prior studies on determinants business growth in the general population and uniquely apply them to LOB using the robust data. Specifically, we examine the impact of numerous business owner, business, and regional characteristics on employment growth. We include industry and state-level fixed effects and test the robustness of results to various employment growth timespans. Some findings include (1) Latina-owned businesses grow faster than LOB, (2) formal education has a positive effect on employment growth and this effect is larger with education level and time, (3) Puerto Rican-owned businesses grow 2 percent slower than Mexican-owned establishments, (4) having multiple establishments reduces employment growth, (5) relying on personal savings for start-up capital impedes growth, and (6) nonmetro adjacency has a significant and negative effect, while population density does not. Our findings show that LOB may grow differently than other businesses and help advance the understanding of factors related to success of LOB. Implementing straightforward and low-cost policies aimed at better support for LOB could help bolster regional growth.
Read more at: https://doi.org/10.1177%2F0160017619826278
More information on the following can be found at https://vgyi.tamu.edu/v-g-young-school-for-county-commissioners-court/.
I will be presenting on your entrepreneurial ecosystem and hope to see you there!
V.G. Young School for County Commissioners Court
61st Annual V.G. Young School for County Commissioners Courts
February 19-21, 2019
Hilton ▪ College Station, TX
Conference registration: https://agriliferegister.tamu.edu/VGYI
See the draft agenda here: https://vgyi.tamu.edu/files/2018/12/2019-JC-Working-Agenda-1-7-19.pdf
The following information is copied from http://www.lonestar.edu/cdi.htm. If you are interested in supporting your community and local businesses, I encourage you to attend this great program!
Improving Communities and Increasing Opportunities
Never before has the practice of community development been more important than it is today. As the world grows smaller through the increased use of global communications, communities of all sizes are finding their boundaries are expanding beyond their city limits. CDI Texas provides practical, interactive, and comprehensive training designed to meet the needs of economic and community development professionals working in a fast paced environment. CDI Texas builds the capacity of individuals and communities to effectively and positively impact economic and social development.
Who Should Attend?
Participants include community and economic development practitioners, city, county and state officials and community volunteers, non-profit staff and board members, chamber staff, private industry, municipal districts, and academics will find the Institute a valuable learning tool for the development of individual and community leadership skills. Attendees will expand their ability to identify community assets, set goals, encourage collaboration, and respond to a broad range of economic and quality of life issues.
The complete program consists of three, one-week training sessions. In addition to learning from successful practitioners, CDI also offers valuable networking and peer-to-peer learning opportunities. Each CDI site offers the core curriculum courses listed below in addition to other course offerings based on site needs and demographics.
Focus is on the foundations of community development and includes group simulations providing participants with a better understanding of the challenges and benefits of a community development approach.
• Asset-Based Community Development
• Community Development Assessments
• Community and Economic Development Practice
• Community Visioning and Strategic Planning
• Team Building
Emphasis is placed on the “nuts and bolts” of implementing economic development strategies, including business attraction, expansion and retention, and entrepreneurship. Overview of commercial and industrial development projects and group simulations are learning tools for this course.
• Building Entrepreneurial Communities
• Business Retention and Expansion
• Business Site Selection Process
• Community and Economic Development Finance
• Understanding Community Economies
Focus is on implementing the knowledge gained in previous years plus acquiring skills in leadership, marketing and organizing the community development effort.
• Understanding Local Development Organizations
• Marketing Your Community
• Measuring Progress
• Workforce Planning and Development Finance
The Advanced Year focuses on the application of community and economic development principles in a real-world setting. This two-day training is designed for individuals who have completed all three years of CDI as well as for non-CDI alumni working in the field who want to stay current with trends and best practices. Completion of Advanced CDI is recognized by the CDC for education requirements, training, work experience and eligibility criteria for re-certification.
Enhance your career by becoming a Professional Community and Economic Developer (PCED). CDI helps prepare you for this nationally-recognized certification offered through the Community Development Council (CDC). Application and eligibility information are available at cdcouncil.com. Pre-registration for the exam is required 45 days in advance. The PCED is optional and not required for CDI attendance.
Registration and Attendance
The cost to attend CDI Texas is $600. The Advanced course is $350 for CDI alumni and $400 for non-CDI participants. Registration fee covers training, participant materials, and breakfast, lunch and refreshment breaks daily. Accommodations and other food costs are the responsibility of the participant. All sessions will be held at the Lone Star Community Building located at 5000 Research Forest Drive, The Woodlands, TX 77381.
Attendance at all sessions is required to earn full credit. If a participant misses more than 10 percent of the course sessions, credit for course completion will not be given. Completion of CDI earns one PCED certification or re-certification point.
A team of researchers have received a $500,000 grant from the U.S. Department of Agriculture to create guidelines to better assist rural military veteran business owners.
Dr. Craig Carpenter, a Texas A&M AgriLife Extension Service economist in College Station, is leading a group looking to identify business entrepreneurship opportunities for rural U.S. military veterans.
Read the full article here: https://today.agrilife.org/2018/08/17/agrilife-extension-economist-leads-rural-military-entrepreneurship-study/
The U.S. Census Bureau recently released a great video explaining how to generate a business report about your potential customers and other businesses like yours for your area or a new market using the Census Business Builder. Check it out below:
The U.S. Census Bureau recently released a great video on how to access your local community’s data! Discover an easy way to access socioeconomic, housing, and demographic statistics for you community in the short and accessible video below: