BLOOMINGTON - Though the economy will get worse before it gets better, reasons for optimism exist. The current downturn could even lead to the same success from the 1970s, said Rich Karlgaard, the keynote speaker for the Economic Development Council of the Bloomington-Normal Area annual meeting.

The 1970s had many of the same issues as today, such as about a 45 percent drop in the stock market, inflation worries and political uncertainty, said Karlgaard, columnist and publisher of Forbes magazine and author of "Life 2.0: How People Across America are Transforming Their Lives by Finding the Where of Their Happiness."

The '70s, though, made up the greatest entrepreneurial decade, with such new businesses as Southwest Airlines, Microsoft and Apple, he said.

"Tough times will really breed the best entrepreneurial startups," Karlgaard told about 300 people who attended the breakfast Thursday at the Interstate Center. "You want them to build here in Bloomington-Normal. The things you're instituting will make that happen."

The EDC has plans to put Bloomington-Normal on the map as well as a system to help local businesses, said Executive Director Marty Vanags.

Both the BizBAM retention program and Circles of Seven mentoring program assist local businesses. The economic development group also markets the region through the Central Illinois Development Partnership and travels to Washington, D.C., to lobby for funding for local projects with its One Voice Task Force.

The group has created or retained 928 jobs with a capital investment of $711,280,000 in the last two and a half years, Vanags said.

"Our plan involves planting the seeds for long-term growth and prosperity," Vanags said.

The Twin Cities are doing a lot of the right things, Karlgaard said.

Part of the winning formula for a mid-size community is to have a marketing strategy that includes a region, Karlgaard said. Communities also need bankers who will lend money and capital to entrepreneurs who can fuel a community, he said.

"So many communities suffer from the idea maybe it can't be done here," Karlgaard said. "One person changes the whole community. … That begets other successes."

The fourth quarter of 2008 will be the worst since 1982 or 1974, maybe worse, Karlgaard said. But people should not fear another Great Depression, he said. The economy will begin to recover with 2 percent to 3 percent growth in the second half of 2009, he said. The real risk, like after the 1976 economic recovery, is inflation, which could start up in 2011, he said.

The past year has been a difficult one for economic development, said EDC Chairman Dick Eikenberg.

Doubt and worry are natural emotions as the national economy suffers and the stock market falls, but the president of Flatlander/Business Builders in downtown Bloomington also tells businesses to build market share now and not give up ground.

"This is the time to build on the foundation of future growth," said Eikenberg, who was honored with the creation of a scholarship as his two-year term ends this month.

The Richard Eikenberg One Voice Scholarship will allow one local college student to join the EDC delegation that travels to Washington, Vanags said.

Larry Maschhoff, president of Bank of Illinois in Normal, will be the new chairman.