By Emile Loza and Rosemary Regner - Special to the Idaho Statesman (Edition Date: 08/21/08): The marketability and competitiveness of Idaho products and services is a sensitive subject. Supporting local businesses creates jobs for our neighbors, money for our schools and a stronger economy for Idaho. Economic development study after study shows this is true. For example, the city of Austin, Texas, found that spending $100 at a national chain store creates $13 worth of local economic activity. That same $100 spent with local merchants generates more than three times the impact a whopping $45 in local economic activity. This huge difference results from:

1. A higher local payroll, because higher-paying jobs are local, not exported to some other state.

2. Local businesses purchase more local goods and services.

3. A larger share of profits from local businesses stays within the local economy.

This makes dollars and sense. Like Dale Carnegie said, “All things being equal, people would still rather do business with a friend.” Idaho has a remarkable community quality. We know each other here. We’re friends and colleagues.

Why, then, do some Idaho companies experience an unfair negative bias simply because they are located in Idaho? Is this a real bias? If so, is it deserved? Are Idaho’s businesses not as good as Company Z from California? How hard did you look for an Idaho company to provide the goods and services you need before hiring that company with a zip code of 90210? Did an Idaho company ask for your business? Do Idaho businesses, as a whole, have a branding problem? Do they not market themselves effectively? If there is a bias, is it against all Idaho businesses or only those working, like us, in the technology sector?

This two-part column is not an exercise in whining. Far from it. We want to get to the bottom of this problem perceived by many Idaho businesses. We want to find solutions. Part One raises the question and asks for input. In Part Two, we will share the input that we receive. We want you to be part of the discussion. We want your honest, constructive input.

Here’s what we want to know: If you purchase goods and services, do you make an effort to use local companies for services, or do you routinely use someone out of state? Is it hard to locate and identify Idaho service providers? How can we more effectively market our services to you? Do we need to make it easier for you to find us? Why do you hire out-of-state service providers? Do Idaho companies have a branding problem? Do you think: “You’re an Idaho company. You can’t possibly be as good as a California company,” or “You’re from Idaho. Can you really be a legitimate resource for my business?”

If you offer goods and services, have you experienced an anti-Idaho bias? If so, why do you think that is? Have you been successful in competing with out-of-state companies for in-state dollars, and how? Can you share examples of companies that exert an effort to locate and use local talent? Do you find it easier to get out-of-state companies to hire you than it is to get Idaho clients? Where do you target your marketing dollars? Please send your ideas to startup@r2dm.com by Aug. 31. A summary of comments, which can be anonymous, will be in Part Two in September.

Rosemary Regner is president of R Squared Digital Media, a leading interactive and 3D content creator for the entertainment, legal, education and interactive markets and based in Eagle. Emile Loza is managing partner of Technology Law Group, PLLC, an international, intellectual property, and Internet law firm based in Boise. Please contact Rosemary at (208) 939.2532 or rose@r2dm.com. Please contact Emile at (208) 939.4472 or eloza@ technologylawgroup.com.

Starting Up is a series published on Thursdays. The columns grew from discussions between the Statesman and local tech and entrepreneurial leaders and are coordinated by Julie Howard, a specialist for the Idaho Office of Science and Technology. Reach her at julie.howard@commerce.idaho.gov.

Article written by Emile Loza and Rosemary Regner - Special to the Idaho Statesman

Edition Date: 08/21/08