Forrestal, Robert P. and Federal Reserve Bank of Atlanta "Conference on Alternative Approaches to Financing Business Development." Welcoming Remarks to the National Council for Urban Economic Development, March 24, 1988, https://fraser.stlouisfed.org/title/5169/item/521158, accessed on April 17, 2025.

Title: Conference on Alternative Approaches to Financing Business Development : Welcoming Remarks to the National Council for Urban Economic Development

Date: March 24, 1988
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image-container-0 W ELCOM ING REMARKS By Robert P . Forrestal, President Federal Reserve Bank o f Atlanta To the National Council fo r Urban Economic Development Conference on Alternative Approaches to Financing Business Development March 24, 1988 Good morning! I have been given the pleasant task o f welcoming all o f you to Atlanta for this conference on alternative approaches to financing business development. Atlanta is a good place for you to gather to discuss this topic, since business development has become something o f a byword for our city. In the past several decades, we have experienced a remarkable rate o f growth here. In part, that growth has resulted from building upon the natural advantages o f climate and geography the area enjoys. In greater measure, however, Atlanta’s expansion has sprung from the willingness o f the public and private sectors in our community to work together to invest in the future. Developing projects ranging from a world-class airport to a host o f small businesses that o ffer innovative products and support services helped to provide the core from which other forms o f economic activity could develop. Small businesses--one o f the focal points o f this conference-play an important role in economic and business development. They have been a powerful engine for economic growth and job creation in recent years—not just in Atlanta but nationwide. As we look ahead, the economic climate for small business appears auspicious. The e ffe c t o f the lower dollar on foreign exchange markets is finally being felt. We are seeing a resurgence in manufacturing that will provide new opportunities in the months ahead. We can expect entrepreneurs to benefit from exploring newly opened niches—whether in making or distributing new products. A t the same time, established firms will seek to add plant and machinery as demands for products and services increases. Events also augur w ell for financing business development. It is true that banks and other firms offering financial services are themselves in a rapidly changing
image-container-1 - 2- environment. Among these changes are the consolidations that have resulted from the relaxation o f interstate banking restrictions, broader product latitude growing out o f the deregulation movement, and new market entrants from foreign countries. However, several major channels o f funding are enhanced by the e ffe c t o f these changes. As banks merge, successful credit programs obtained from experience in one financial market are made available in other markets as well. Deregulation also fosters the growth of new financial products and a variety o f novel instruments have proliferated among banks as well as nonbanking firms. Another encouraging sign is the ongoing creation o f new banks, a phenomenon we have seen in many southeastern cities. Often these banks are particularly attuned to serving the needs o f small business market. Finally, the globalization o f financial markets has brought new players to the field. Foreign bankers and investors can be counted upon to draw on their own experiences and bring different ways o f viewing business development to bear on our domestic market. Taken together, these changes inside and outside o f banking mean that businesses should have progressively more access to capital if they know where to look for it. While the basic economic and financing outlook looks bright, there remains a strong need for bringing businesses together with sources o f capital, and that is one o f the main purposes o f this conference. Clearly, businesses themselves must play the lead role. To tap into and sustain financing sources, they must develop appropriate business plans and continuously enhance their productivity. A t the same time, there is a role for federal, state, and local governments. One way they can help is by nurturing promising enterprises to the point where they are more attractive to potential financers. The public sector can encourage the development o f small business directly by supporting programs like incubators and technical assistance efforts. Georgia's own Advanced Technology Development Center is an excellent example o f how the public-private partnership can contribute to new business formation through providing low-cost o ffic e space, clerical support, and other necessities. In the main, however, government can do
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Date: March 24, 1988
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