Economic diversification and entrepreneurship
The future economic prosperity of the Bakersfield-Kern region hinges on a strong change in our economic diversification and our openness and adaptability to this change. This change doesn’t need to be uncomfortable, and if everyone with a vested interest in our region’s success comes together, the results will be additive to our existing foundation.
Historically, economic diversification has been a herculean task that community leaders and residents alike have long identified but have struggled to achieve. In the midst of COVID-19 and market, regulatory and equity challenges, we have a unique opportunity to band together and develop a plan to envision and build a more prosperous and inclusive future economy.
To this end, we are both members of the executive committee for A Better Bakersfield and Boundless Kern: Regional Action for Economic Prosperity, or what we call “B3K Prosperity.” The purpose of B3K Prosperity is to apply lessons learned from more than 50 other regional economic vitality initiatives across the nation and identify policy and investment opportunities that will generate broad and inclusive economic development in our backyard. Through B3K Prosperity, our vision is to see quality jobs created in our region, so that every person living in our communities can prosper. Simply put, to determine our own path and direction and not let others determine it for us.
As we look to realize this vision, one of our highest priorities is attracting and cultivating traded sectors.
Traded sectors are businesses whose goods and services are sold to customers outside of our region. Today, our region’s primary traded sectors are the oil and gas, agriculture and aerospace industries. These and other traded sectors contrast with local sectors of the economy, which sell their products mainly, if not exclusively, to customers in their region. Examples of local sectors include education, health care, government, and a variety of small businesses who serve residents and other regional businesses.
Developing and expanding traded sectors is at the core of inclusive economic development, because they bring new revenue into a region and accelerate growth. As traded-sector businesses and workers make and spend this money, they create a multiplier effect that lifts the prosperity of everyone in a region. The multiplier effect of traded sectors isn’t just theory, though. It’s our lived experience. Anyone who has lived in the Bakersfield-Kern region for some time has seen how commodity price cycles and the expansions, and contractions, of our traded sectors impact jobs and wages across the board.
If we are to future-proof our economy, we must focus on industry diversification so that our regional prosperity derives from a broad base of traded sectors.
One of the questions we’re seeking to answer through B3K Prosperity is which traded sectors should we focus our attention on developing. In essence, what are the Bakersfield-Kern region’s opportunity industries?
Answering that question requires both research and creativity.
Through economic and social research, we will identify traded sectors more likely to succeed in our region. Analyzing our human capital and existing resources will help us focus our efforts on attracting and developing industries that provide quality jobs and are a fit for our region.
At the same time, though, economic diversification, growth and deep prosperity are going to require creativity, innovation and changes that might feel uncomfortable but energizing for everyone. We can
GREG BIELLI draw from our strong community values of family, caring for others, and a strong work ethic to help support each other on this journey.
What are the industries that will build on our legacy of energy, agriculture and aerospace to expand opportunity and prosperity in the Bakersfield-Kern region? To find them, we need a concentrated
Traded sectors are businesses whose goods and services are sold to customers outside of our region. Kern County’s primary traded sectors are the oil and gas, agriculture and aerospace industries. Developing and expanding these is at the core of inclusive economic development, because they bring new revenue into a region and accelerate growth. As traded-sector businesses and workers make and spend this money, they create a multiplier effect that lifts the prosperity of everyone in a region. effort to push past the bounds of business as usual and rethink what is possible in the Golden Empire. We must support entrepreneurs and innovators, and we will have to invest, test and be willing to fail forward in our quest to find the path forward for our region. We will have to create many new partnerships between the public and private sectors that might challenge some, but strong collaboration and leadership will tackle the obstacles and get it done.
The task may seem daunting, but we’ve been there before.
Where would we be today if not for the farmers, wildcatters and test pilots who laid the foundation for the Bakersfield-Kern region we know today?
Our next century of growth and prosperity requires that we cultivate entrepreneurs, inventors and makers, ensure they have access to adequate capital — both financial and human — and develop community infrastructure that enables them to start and scale successful enterprises.
Our region is ready for growth. Our people are hungry for prosperity. We look forward to continuing to partner with our peers in the business, public and civic sectors through B3K Prosperity to build a more equitable, inclusive and prosperous future for everyone who calls the Bakersfield-Kern region home. We hope you’ll join us.