| Economic development is
a vital activity for any community. It is the process of
creating greater wealth within a community by bringing in
new "outside" dollars. This is mainly achieved
through:
- Retention, expansion and recruitment of "primary"
jobs
- New capital investment
- Attracting visitors to spend money in the community
What is a "primary" job?
A "primary" job is a job that produces goods
and/or services for customers that are predominantly outside
the community. This creates new "outside" dollars
for the community. Once an employer is paid for the products
and/or services, he redistributes that wealth in the community
through wages paid to employees and through suppliers.
Why does our community need "greater"
wealth?
Economic development programs vary based on the needs
of a community. There are several benefits of a successful
economic development program.
- Higher quality public services–By
increasing the tax base of a community, local governments
can provide higher quality public services to citizens.
This could mean additional police officers to help ensure
public safety, additional parks and recreation areas,
etc.
- More job opportunities for citizens–Adding
"primary" job opportunities to a community gives
citizens more opportunities to find higher-paying jobs
closer to home. "Primary" jobs usually pay a
higher average wage than the average per capita income
of the community. They also create additional or "spin-off"
jobs within a community.
- Greater protection from economic downturns–One
of the focuses of economic development is to diversify
the economic base, thereby increasingly cushioning the
community against economic shocks. A community that has
not diversified its industry base can find itself in trouble
if its single, major industry downsizes or suddenly leaves
the community.
What does an economic developer
specifically do?
Economic developers wear many different hats. However,
there are three main functions an economic developer performs:
- Provide information and assistance to companies
that are interested in the economic developers community
for relocation, retention or expansion
Economic developers do not create new jobs. They provide
information and assistance to companies who create new
jobs. A good economic development program strives to have
the most comprehensive and current information available
on the following:
• Local demographics
• Public infrastructure and costs
• Real estate
• Taxes, fees, and regulations
• Quality of life
• Business assistance programs
- Market the community to targeted business industries
Like any company, if a consumer isn’t familiar with
your product, they won’t buy it. Another function
of an economic developer’s job is to market the community
to businesses in "targeted" or specific industries
best suited for the community. Marketing activities often
include:
• Print advertising
• Recruitment trips to targeted areas
• Tradeshows
• Multimedia presentations
• Cold calling
• Site selection conferences
• Public relations
- Work with elected officials and community partners
to ensure that a positive business environment exists
in the community.
The same things that attract new employers will keep existing
firms in the community. There are several reasons why
companies thrive in certain communities and struggle in
others. These factors include:
• Proximity to markets
• Ease of international travel
• Local labor skills and availability
• Tax and regulatory environment
• Quality of life issues
• Cost of doing business
• Strong and stable political leadership
• Incentives
• Infrastructure
• Proximity to major universities
• Concentration of existing industries
Economic developers work with elected officials and community
partners to strengthen any gaps in the community related
to the above items and make the community more desirable
for businesses.
If you would like someone from JEC to address the basics
of economic development at your next group meeting, please
e-mail us or call 303-202-2965.
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