Valley Artisans Mean Business

The view that Los Angeles is developing into an “artisan economy” and becoming a “corporate banana republic,” as expressed in a recent column by Joel Kotkin, although perhaps startling to some, came only as confirmation of accepted knowledge to many in the San Fernando Valley.

The diminishing list of corporations claiming the Valley as headquarters and the growth of small companies forming an economy of artisans has been the economic direction of the Valley for decades.

Many folks trace the Valley’s rise as an economic stronghold of small companies to the 1994 Northridge earthquake and the subsequent marshaling of forces to meet the challenge. Actually, its strength can be traced two decades back, to 1977, when an intra-Valley communications network among business people was established by, among others, former Assemblywoman Paula Boland.

Unlike the old-boy network of corporate headquarter chieftains that met daily at their downtown club, early Valley artisans met monthly as the United Chambers of Commerce. Communication at those monthly business luncheons has now grown to a network of World Wide Web-connected computers linking the 22 member chambers.

The San Fernando Valley is continuing to busily transform itself without relying on corporate paternalism. Where corporate chieftains mark growth in the number of branch banks, gas stations or department store locations, the new artisans see growth as individual success in each business.

To assure that success, experienced business people help guide the Valley Economic Development Center Inc. on its mission of educating entrepreneurs to successfully meet the challenges of building a business.

Part of that challenge, as Kotkin points out in “The L.A. Economy, Back to Basics,” (Feb. 16, Opinion), is the ability to raise financial capital.

Although the Silicon Valley businesses’ ability to attract $1.2 billion in venture capital dwarfs the $126.5 million lending commitment by 15 financial institutions to the Valley Economic Development Center, that local money sends a strong signal to other lenders.

That commitment came because local lenders can see future value in the Valley’s diversity and because they trust the Valley Economic Development Center’s knowledge of the area’s business future.

While Kotkin is concerned about regional policymakers keeping the talent pool full, the Valley Economic Development Center is pumping into that pool with entrepreneurial training programs and advanced courses for chief executive officers.

Through active participation in a relatively new organization, the Economic Alliance of the San Fernando Valley, training for skilled artisans in the multimedia field is being developed.

There is no argument with Kotkin’s thesis that Los Angeles needs “a strong base of larger corporate entities capable of luring sophisticated business services and financial power back to the region,” but they had better hurry if they want in on the ground floor in the San Fernando Valley.

The artisans here are moving swiftly.

Experienced business people help guide the Valley Economic Development Center Inc. in Van Nuys, below, on its mission of educating entrepreneurs to meet the challenges of building a business.

The local economy is continuing to busily transform itself without relying on corporate paternalism.