Tier 2 & 3 communities (smaller regional economies) in search of a new economic lifeblood must scrupulously assess how/where their economic development efforts, energy, and resources are channeled.  It's time to consider new approaches.

If over 99% of startups never see a first term sheet from a venture capital (VC) firm, then why do economic development leaders in "transitional" Tier 2 and 3 communities—regional economies struggling to reconfigure and revitalize economic identities--allocate precious time and resources to courting VC investment and committing capital to so-called innovation funds? Many regional leaders flaunt soft-core track-records of driving scalable change in any capacity.  Peel away this pasty approach to economic development; find communities partaking in hot 'n heavy burlesque shows to lure large companies to town with subsidized club entrance fees and private dances of financial incentives.  Motorboat approaches (that is, venture capital and Company Town strategies) to economic vitality are severely flawed... 

When survival is on the line, we instinctually focus on our immediate needs – food, shelter, and family.  Survival is the least common denominator of life: It is a necessary condition in a sufficient world.  Across the evolutionary continuum of human survival, humankind realized the benefits of working together.  Thus, hierarchies emerged, governments formed, and modern communities arose.  The survival of a community is dependent upon its ability to evolve.  Community survival happens in three ways: Leadership adapts to new realities, leadership relocates/disbands, or leadership becomes extinct.  Adapt, move, or die.  Looking within our communities, local leaders are confused as how best to overcome challenges such as mounting debt and divisive viewpoints.  Though we’re dealing with the age old social problems – education gaps, healthcare deficiencies, and lagging local industry prospects – standard tools of yester-year have evolved and the current generation of community leaders seems thoroughly unprepared, perhaps even unwilling, to adapt, which leaves us with limited alternatives.