Podcast #138 - Blending Non-Profit Values with For-Profit Agility: Bo Kemp’s Approach to Economic Development

Episode 138 of the Econ Dev Show Podcast is now live.

In this episode, Dane and Bo Kemp, CEO of the Southland Development Authority discuss his unique approach to economic development through a not-for-profit organization that operates with the agility and risk-taking mindset of a for-profit business.

Kemp emphasizes the importance of failing fast and pivoting quickly to optimize programs and services. He explains how his organization is structured to evaluate and stop initiatives that aren’t delivering the expected impact, which contrasts with traditional non-profits that often have difficulty abandoning projects due to the lengthy fundraising and validation process. His goal is to take on the risks that for-profit businesses avoid, using innovative techniques like measuring social impact and partnering with businesses to drive wealth-building at the municipal level.

Kemp also shares how his team is working to monetize their services by offering their proven models to other municipalities. For example, their business growth services could be replicated in cities like Tucson, Arizona, allowing other communities to benefit from their expertise and infrastructure without having to start from scratch. Kemp’s team uses tools like Salesforce and data science to manage relationships and measure success, which they are willing to share with other cities to support broader economic growth. The conversation highlights Kemp’s vision of blending for-profit efficiency with non-profit values to foster sustainable, community-centered development.

Like this show? Please leave us a review here — even one sentence helps!

Actionable Takeaways

1. Adopt a Fail-Fast Mentality: Economic development organizations should experiment with new initiatives, measure their impact quickly, and pivot or stop those that aren’t successful.
2. Operate Like a For-Profit: Even non-profit entities can benefit from adopting for-profit business strategies, such as streamlining operations and focusing on measurable outcomes.
3. Take Calculated Risks: Be willing to take on risks that for-profit businesses avoid, especially when it can lead to long-term community wealth building.
4. Monetize Services: Economic development organizations should explore ways to monetize their programs and services to reduce reliance on non-profit funding sources.
5. Build Partnerships: Collaborate with both public and private entities to enhance service delivery and expand the reach of economic development initiatives.
6. Leverage Data and Technology: Use tools like customer relationship management (CRM) systems and data science to track performance, optimize services, and improve community impact.
7. Create Replicable Models: Develop programs that can be easily replicated by other municipalities, allowing economic development innovations to scale beyond local communities.
8. Measure Social Impact: Incorporate social impact metrics to assess the effectiveness of economic development initiatives and justify the risks taken.
9. Be Proactive in Finance: Establish a financial arm that can proactively address the needs of the community, allowing for greater flexibility in responding to economic challenges.
10. Share Knowledge Freely: Be open to sharing successful models and insights with other cities and organizations to collectively improve economic development efforts.

Other Sponsors

🫶 The Econ Dev Show is made possible by our Econ Dev Pro members (join now) and sponsors: EDOiQ, ResearchFDI, Jorgenson Pace, and SiteHunt. (Become a sponsor.)

Episode Links

• Bo Kemp | LinkedIn
• Southland Development Authority — The SDA is a non-profit business organization designed to grow the economy of the South Suburbs.
• Video - Southland Development Authority 2024 - YouTube
• Southland Development Authority | LinkedIn
• Southland Development Authority (@BuildSouthland) / X
• Southland Development Authority | Facebook
• Southland Development Authority (@buildsouthland) • Instagram photos and videos
• Southland Development Authority - YouTube

Audio