The Northeast Regional Center for Rural Development
The Pennsylvania State University
7 Armsby Building, University Park PA 16802-5602
814/863-4656(phone); 814/863-0586(fax)
Please send questions and comments to:
nercrd@psu.edu
BUSINESS RETENTION & EXPANSION VISITATION PROGRAM
CONTENTS (Part 4)
What are the Costs of a BR&E Visitation Program?
Volunteer Time: Cost or Value?
How Long Does it Take?
How Many Hours are Required Per Person?
Cost of Doing the Applied Research
Fees Charged to Communities
Other Local Costs
WHAT ARE THE COSTS OF A BR&E VISITATION PROGRAM?
So much for the benefits, what are the costs of doing a BR&E Visitation program? Let’s take a look at these. Compared with many economic development programs, the BR&E Visitation Program is an extremely low-cost option.
Volunteer Time: Cost or Value?
If you have a home flower garden and enjoy working in it yourself, how do you estimate the cost of your time? Do you simply take your average hourly wage times the hours you work? Or, since you are having fun, do you assume your time is either free or that you would need to charge yourself an entertainment fee? It’s not clear cut, is it?
We run into the same problem when estimating the cost of volunteer time for the BR&E Visitation program. Because most people consider it fun to visit firms, it might be incorrect to estimate the value of their time as a cost. If you do count this time as a cost, citizens and local leaders collectively contribute about $25,000 in time to an average BR&E Visitation program.
A BR&E Visitation program takes two to three years to complete. Organizing the local Leadership Team usually takes one to two months. The firm visits and action-based strategic planning efforts take from four to nine months. The rest of the time is devoted to implementing the plans. Local economic development takes time and effort. It would be a mistake to recruit the Leadership Team and Task Force members on the promise that the program commitments would be completed in six months. That promise would forecast a program that develops a strategic plan that sits on the shelf and never gets implemented.
How Many Hours Are Required Per Person?
Naturally, this varies considerably with the community, its problems, and the local leaders, but on average, the most time is spent by the Leadership Team, followed by the Task Force, and then the Volunteer Visitors. All three groups typically visit firms. In addition, the Task Force meets to set policy and to consider the survey results and future actions. Often, the Leadership Team convenes between Task Force meetings to set the stage for effective Task Force meetings.
Table 1: * Summary of Estimated Time Commitments of BR&E Visitation Participants
Participants |
Number |
During Visits and |
During |
| Local Citizens & Leaders | ———— Total Hours Per Person ———— |
||
| Overall Coordinator | 1 |
70 |
40 |
| Other Leadership Team Members | 3-4 |
45 |
30 |
| Task Force Members | 25-30 |
20 |
20 |
| Volunteer Visitors | 25-30 |
10-20 |
0 |
| Firm Owner/Operators | 30-100 |
1 |
0 |
| Technical Assistants | |||
| BR&E Consultants (12) | 1 | 100 | 30 |
| Computer Technician | 1 | 24-45 | 0 |
| Report Writer | 1 | 100 | 0 |
| Professional Review Team | 15 | 5 | 0 |
* Includes time spent in meetings. Time spent on implementing projects varies considerably based on priorities identified and individual skills.
Cost of Doing the Applied Research
On the research side, estimating the costs are easier. There are costs for entering the data, doing the computer work, analyzing the results and writing the reports, printing the reports, and traveling to the community to present the results. Together with the time and travel of the BR&E Consultants, these average about $15,000 per program.
The fees range from zero to $15,000 per program. The difference between the costs and fees is paid from a variety of public and private agencies depending on the state. You’ll need to check with your state’s sponsoring agency to determine the fees in your area.
In addition to program fees, you need to plan for expenses associated with mailings and meeting expenses. Plan on postage and photocopy expenses of about ten dollars per firm targeted for a visit. Effective volunteer participation also requires mailing of meeting notices. Volunteer participation is usually enhanced if a small amount of money is available for light refreshments at meetings. Recruiting a strong Local Leadership Team is critical to obtaining sufficient financial support for an effective program.
