The Basics of Economic Development

Maury FormanAugust 22, 2010

Economic Development

Activities which promote increased revenues or retain and/or create permanent jobs in the private or public sector within a specific geographic boundary that diversifies the

local economy, improves the quality of life and lead to producing positive cash flow, terminating in the area.

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Economic Development is...

A process of promoting the investment of capital to encourage maintaining or gaining the beneficial use of

property and equipment, and which results in new and/or retained jobs within the community. This usually results in increased buying and selling of goods and services

within the community.

Why do economic development?

• Create Jobs

• Raise Incomes

• Increase Tax Base

• Help Local Industries

• Stabilize the Economy

• Avoid Obsolescence

• Develop Resources

• Revitalize Community

It’s Not Just About Jobs

• Investment

• Tax base growth

• Return on investment

• Market growth

• Personal income growth

• Export growth

• New business starts

• Innovation

• Assessed valuation growth

20th Century Stool Theory of Economic Development

Economic Development

Economic Development

CommunityDevelopment

Business Retention & Expansion

BusinessAttraction

21st Century Stool Theory of Economic Development

Economic Development

Economic Development

Capacity Building Technical Assistance

EntrepreneurialDevelopment

What you are thinking at this very moment

• I am learning some new things in this

presentation

• I can’t believe I gave up a Sunday afternoon for

this

• I’d like to buy this guy a drink later on

The Pillars of Development Theory

Economic Development

• Business Attraction• Business Retention• Business Development• Business Expansion• International Business

CommunityDevelopment

Social SystemsCultural/RecreationalEconomic ClimatePolitical ClimatePhysical Infrastructure

Workforce Development

School to Work programsYouth EntrepreneurshipTraining & Skill DevelopmentWelfare to WorkSocial Entrepreneurship

Port Districts

Revolving and Micro-Loan Funds

Government (Federal, State, Cities, and Tribal)

EconomicDevelopmentDistricts

CommunityAction Programs

Convention & Visitor Bureaus

High SchoolsCommunity CollegesVocational Schools

County Chambers

EDCs, Business Community,SBDC

Utilities

Property Development Recruiting

Infrastructure Support DevelopmentBusiness

Development Coalition Building

Business Climate Quality of Life

Workforce Development

Tourism

Community Development

Business DevelopmentCoalition Building

Funding Business Climate

Access to Capital Technical Assistance

You see, Timmie