Economic Development is a part of community development. A good economic development program begins with an analysis of local resources, both human and material.

From my experience I have found that no two communities start development programs from the same place, because every community's resources are different. One might have higher job skill levels. The other might be a regional tourism attraction. A third might be located near an interstate. All of them require different strategies.

Research has also shown that Economic Development is not a precise science in the traditional sense as its focus must involve the whole community.

Five Basic Objectives
I contend that good economic development programs are built around five basic objectives. Remember specific strategies will vary from town to town, but a good program should include all five.

Attract New Employers:
Recruiting businesses and industries that are looking to move or expand into new location is an important part of an overall economic development program. Effectively targeting industries can help a community diversify, raise income levels and fill voids. Enticing a manufacturer to locate in any community may involve the use of tax credits or possible use infrastructure improvements.

Access outside funding:
All communities need to remember that the array of programs and services available from some counties, state and federal governments and other public sector agencies can increase a smaller community's opportunity to grow.

Encourage new businesses:
Strategies associated with this objective strive to create new enterprises that serve local markets or those outside the community. The essence of entrepreneurship is the development of new products for manufacturing or the creation of innovative service not presently available. New businesses that add value to local resources or products may be created.

Make current employers more competitive:
Many professionals feel this is the most cost-effective approach to economic development because it emphasizes holding onto what a community has. Improved profitability could also mean business expansion. Some strategies include establishing job training programs, providing business counseling and helping businesses improve their marketing skills. These strategies help local businesses "tune in" to the changing world.

Capture more local dollars:
Many of the dollars that come into any community leave as quickly, in either lost retail sales, taxes paid to other governments, and purchases of services and supplies elsewhere.

For one example, up to 20% of a community's income leaves town to pay outside companies high energy costs. A housing weatherization program could assist in putting a large chunk of that back into community pockets. I like to support programs that encourage businesses to purchase goods and services locally which is another effective strategy for capturing the local dollar.

A good economic development program will use all the resources within a community which should include: economic, social and cultural. Every community views its "capacity" differently, and each should judge itself by the quality of what it has and then judge its future the same way.