SOUTHEAST

     ENTERPRISE

     FACILITATION

     PROJECT

 

 

     Nancy Larsen, Facilitator

      501 South Broadway/ PO Box 106

      Marion, South Dakota 57043

      (605) 648-2909 or (888) 233-1239

      Fax (605) 648-3778

      email: sefp@southeasternelectric.com

      Website: www.sefp.com

 

 

 

      Jan-July 2004 calendar year:

          48 Inquiries

          22 Clients enrolled

     

      6  New Business Established                             ŸCenterville Automotive Repair

            ŸThe Chuck Wagon Cafe

            ŸCenterstripe

            ŸDelzer Chiropractice Clinic

            ŸTurkey Ridge Landscaping

            ŸTransition Services LLC

               

        0 Expanded Businesses

 

       3  Retained Business

          ŸWinks Welding

            ŸThe Beer Garden

            ŸUnnamed Ag business, Parker

               

 

         11.5     New Jobs

        6.5     Retained Jobs

      15     Business Plans

 

Multiplier Concept Reveals Value

  

  An economic impact analysis is based on the concept of the multiplier.  The multiplier is the relationship between some change in an economy and the succeeding economic activity that occurs as a result of that change. 

   Changes in the economy occur when new businesses begin operating or if an existing business expands its products or services and additional sales dollars are realized in the community.

   Succeeding activity occurs when that new or expanded business spend his dollars paying for taxes, utilities, payroll, inventory, services, advertising, repairs, etc.  And each of the recipients of these dollars use their dollars to in turn pay for like items, over and over it turns six times.

   The multiplier concept of local re-spending patterns emphasizes the importance of local spending.  The basic idea is that the impact of money spent locally has a greater impact than the initial amount spent, since a portion of that initial amount is re-spent in the local economy. 

  

   In the illustration to the left the multiplier is 1.66.  In other words, every new $1 of spending generates an additional $.66 of local spending.  This multiplier may vary depending on what percent is re-spent locally.

   The key here in the rural areas is local spending.  What would happen if we are loyal to the local businesses in our communities? One answer is the local businesses stay in business and we retain the way of life here in the northern plains of the United States of America, an area of high work ethics, family, camaraderie, safety, caring and security, to name a few.

   The follow chart details the multiplier effect of varying industries in Turner and Hutchinson counties (averaged) as evaluated by the Type SAM multiplier at SDSU.

 

** The above chart is used for illustrations only showing value-added with additional dollars in a community..

** The above chart is used for illustrations only showing value-added through additional dollars in the SEFP area.

 

“Creating opportunities, increasing economic vitality and enhancing quality of life”