Getting Started with Community and Economic Development

Community Development is a term that can refer to comprehensive strategies or small projects. Because the use of the term community development is used in such a wide range of situations, the idea of community development can be misunderstood. In a similar way, Economic Development is a subject that can be misunderstood and one that people know very little about.

What is Community Development?

From a community perspective, community development includes nearly every type of purposeful community change. Creating purposeful change (development) of aspects of economy, health, physical infrastructure, governance, social needs, or other aspects of living addressed at a collective (community) scale- are expressions of community development.

Why do communities do Community Development?

Investments in community development are often intended to improve the quality of life for residents. Efforts to guide community development frequently start by assessing areas of needed change, or by identifying a preferred status the community would like to achieve. Results of Community Development can include:

• A sense of pride and ownership in/for the community
• A healthier environment
• An engaged citizenry working in the interest of all the community
• Improved services for community residents
• Increased education opportunities
• Increased employment or wealth accumulation opportunities
• Overall improved quality of life

What is Economic Development?

Economic Development usually takes three forms in communities:

1. Business Attraction
2. Business Creation (Entrepreneurial Development)
3. Business Retention and Expansion

All three forms of economic development aim to create new primary jobs that pay more than the prevailing wage, increase the amount of income coming into the community from outside its market area, and create greater capital investment in the community. The strategy is to achieve this in a number of diversified industries.

Why do communities do Economic Development?

Economic development has three main purposes:

• To give a greater number of people greater access to wealth through personal economic growth.
• To increase the tax base of communities in order to provide higher quality public services to citizens.
• To diversify the economic base and thereby cushion the community against economic shocks.

    
Here is a video by Dr. Alison Davis, where she presents Economic Development 101.