The “Why” Behind Economic Development

October 2024
Dave Hengel
Executive Director

I noticed the other day that I’m approaching my 37th year in economic development in northern Minnesota – the entire time with just two organizations.

The first half of my career was with the Headwaters Regional Development Commission – or HRDC. I will always be grateful to the HRDC for taking a chance on me fresh out of college. Those were the days when having a job – any job – out of college was a win. But I scored big because the HRDC proved to be an outstanding place to learn from the leaders at both the HRDC and in the communities I served.

The other half have been with Greater Bemidji – an organization that has allowed me the freedom to push our community’s and our organization’s boundaries of what was traditionally viewed within the purview of economic development, and to drive a new vision for the organization. I am deeply grateful for the trust our Board of Directors have placed in me over the last 14 years.

I don’t claim to be a deep-thinking guy, but I’ve been thinking about my career and questioning what about the field of economic development has kept me motivated and engaged. At a time when people change jobs several times during their careers, why have I stuck with this economic development gig this long?

The answer might surprise you, and it speaks to the core of why regions push for economic growth and development.

When people think about economic development, the immediate thought is economic developers support and incentivize businesses to locate and grow in our region. While that is certainly true, there is more. Good economic developers acknowledge they have dual customers – the business community and the people within the region. Ultimately the goal of economic development is to improve the wealth and quality of life of the people within the region. We do this, in part, by increasing good-paying jobs, supporting workforce development and growing the region’s tax base. Notice the nuance – we support people through business and economic growth.

It is always exciting to announce new and expanding business development projects within the region, yet what has truly kept me motivated has been the real impact my organization can have on real people in the region. It’s the call I have received from someone who wanted to tell me she now has a career because of a business we brought to town. Or the young entrepreneur who we helped start a business – something she felt was out of touch for her. It’s the opportunity to celebrate the end of training for an employee now qualified for a good- paying manufacturing career. And it’s the support for meaningful community projects I hear from our local families – the proposed YMCA being a perfect example. The people in our region matter in everything we do.

About a month ago, Greater Bemidji heard a presentation from Denae Alamano of the United Way focused on “ALICE” in our region. It may be the most consequential presentation we have heard in my time at Greater Bemidji. ALICE stands for “Asset Limited, Income Constrained, Employed” – essentially a label for what many would consider the working poor or those living paycheck to paycheck. I would argue the ALICE threshold replaces the “poverty rate” – a more accurate account for those who are struggling in the current economic environment. The United Way gathered information on households in our region under the ALICE threshold to better understand the challenges they face.

The numbers were staggering to me. In Beltrami County, 42% of households are under the ALICE threshold. In the City of Bemidji it is 53%. In Red Lake it is 62%. In the City of Blackduck it is 70%. I thought I knew our region, but this caught me by surprise. These are our friends and neighbors struggling to get by in today’s world while working to support themselves and their families.

I believe supporting ALICE households needs to be the centering focus of our region’s economic and community development work. So much focus has been on those not working. For years I have heard community members lamenting the need to get people to work. While that is clearly important, it has prevented conversations focused on supporting ALICE families. As a reminder, ALICE households ARE working, yet still face many very difficult challenges that prevent them for building any wealth.

Greater Bemidji does work on issues that matter to ALICE households, but we can do more. We have supported childcare center development in the region. Our training center opens well- paid career opportunities in manufacturing for ALICE workers. We have just started looking for ways we can increase the development of single-family, workforce housing for ALICE households to own and build equity. We offer 100% free support for any community member interested in starting their own business through our LaunchPad. Finally, we drive community projects like the YMCA that ALICE households can access that will improve the quality of life for their families.

Many others– both non-profits and public officials – do far more than Greater Bemidji to support our ALICE families. As a community we need to honor their work and support them whenever we can.

Having such a large percentage of our population living paycheck to paycheck must be a call to action for our region. Greater Bemidji stands ready to help create a movement to support our working families. I know the United Way is equally prepared, and other partners will willingly jump in. Ultimately it will take sustained community engagement to make a difference. While it will take time and resources, is there a more worthy goal for our region’s economic development?

I am asking today for your help. If you are living paycheck to paycheck, what can be done to support you and your family? How can our community support you? What ideas do you have to help build wealth and improve the quality of life for our region’s working families?

The time is right for us to start listening and galvanizing around community-based ideas and solutions.