BUSINESS RETENTION IS IMPORTANT
TO ILLINOIS' ECONOMY

Although it's easy to understand the excitement felt in a community when a new business or industry comes to town, it is every bit as important to make sure employers already located in Illinois communities continue to grow and prosper in those communities.

From the beginning of his administration, Gov. Edgar has emphasized the importance of retaining Illinois businesses. Department of Commerce and Community Affairs (DCCA) Director Jan M. Grayson has made business retention a major focus of the Department, forming the Illinois Business Retention Advisory Council (IBRAC) to provide advice and input from the private sector as the state develops a comprehensive business retention strategy.

The IBRAC is a coalition comprised of representatives from the financial service sector, local economic development organizations, utilities, business consultants, business organizations and associations, and universities. Its mission is to determine the important issues associated with business retention, make recommendations on a statewide business retention strategy, and oversee the development and implementation of the strategy.

Over the past nine months, the IBRAC members have met monthly to study the issue of business retention. Recently, members presented a report of their findings and recommendations to Grayson and to Samuel Skinner, Chairman of the Illinois Economic Development Board. Among its recommendations:

• Develop a Five-Year Strategic Plan to provide a high level of support and visibility for business retention, development and expansion.
  
• More effective targeting of industries and companies affected by changing economic forces.
  
• Develop an effective Early Warning System to identify firms at high or medium risk to leave the state or close.
  
• Bridge the information gap to help decision-makers understand challenges and opportunities and empower them to take appropriate actions.
  
• More attention from state and local government to business climate issues and problems.
  
• Recognition that many business climate factors are influenced or directly controlled by government.
  
• Establish a centrally-based retention function within DCCA.
  
• Organize locally-based retention "teams."
  
• Mobilize the necessary public and private supporting resources and pilot-test the retention model.

Already, DCCA is taking steps to address many of these findings and recommendations. The Department is working with the Midwest Center for Labor Research and DRI/McGraw Hill to develop the Early Warning System, enabling the state to offer assistance to companies considering a move or closure before such decisions have been finalized. DCCA has facilitated development of an Advisory Task Force on Ownership Succession and Employee Ownership, which will review state regulations to determine if changes are needed to encourage ownership succession opportunities.

DCCA recently selected five communities (Carol Stream; Collinsville; Quincy and Adams County, through the Great River Economic Development Commission; south suburban Chicago region, through Cook County Department of Planning and Development and the Chicago Southland Economic Development Commission; and Springfield, through the Springfield Chamber of Commerce) to participate in a retention demonstration project. Activities to be undertaken will include pilot-testing the Early Warning System, helping the communities to prepare for industrial and economic development, and providing technical assistance.

DCCA also will continue to work with the Illinois Economic Development Board on retention-related issues.

DCCA Business Retention staffers are ready and willing to work with local government officials to help them understand business retention. A Business Retention Manual has been developed to serve as a resource guide on state and local programs available to assist in retaining businesses and industries. The manual is available for purchase through DCCA.

For further information, contact Mary Renner at DCCA's Springfield office (217/785-6097, TDD: 217/785-6055) or Pete Ramirez in DCCA's Chicago office (312/814-5252, TDD: 312/419-0667). •

April 1994 / Illinois Municipal Review / Page 5