Understanding Economic Development Organizations
These days there is a lot of talk and focus on economic recovery. A lot of the funds being distributed by the Obama government are being distributed in the name of Economic development programmes. So what does it actually mean? What does it mean to say that there is an economic development programme.
The meaning of Economic Development
Economic development generally means improvement in quality of life for a people living in a certain area. These quality of life indicators could mean access to well-paying jobs that allow people to grow and attain their full potential. It also could mean access to good schools and hospitals and other social amenities.
It is interesting to see that at all levels in the government as well as various industry groups, there are paid employees engaged in the profession of economic development. Their role is to attract investors, businesses and in many cases skilled individuals to choose the jurisdiction they represent as the ideal destination.
The job probably started with someone providing information to interested businesses from within the Ministry of Commerce. As the art and the discipline grew, professional bodies such as the International Economic Development Council (IEDC) were formed. Prominent real estate agents also like themselves to be called economic developers as to traditional planners and development economists.
The primary focus of economic development practice currently seems to be attracting and retaining businesses.
However, the challenges facing any economic development agency are pretty huge. They cannot forecast to any level of accuracy who the next individual/ company looking for information might be. Consultants and potential customers expect more and more information available directly on the Internet in a manner that is accessible, trustworthy and still compelling.
As many recent studies have shown, the decision process is getting shorter but a lot more information actually changes hands. If your jurisdiction's information is not readily available or accessible then you may be losing business.
The importance of focus
Jurisdictions also seem to be questioning how they are perceived by outsiders and residents alike. Many areas have undergone branding exercises to correctly position their jurisdiction in front of the potential investor.
What kinds of systems are needed to support economic development initiatives?
In my mind, the economic development organizations wear several hats. These include the following:
a. A Sales and Marketing Organization
b. A Venture Capitalist
c. A lobby group
d. A development agency
I will examine each of these roles in subsequent blogs.
