Keys to Economic Success

Keys to Economic Success

By Don Macke

For over 35 years, the team at the Center for Rural Entrepreneurship has been seeking insight into the keys to local economic development success.  Using the insight that is based on their field work across North America, Don Macke, Director of Entrepreneurial Communities, published an article entitled “Keys to Economic Success”.  I will be featuring different keys in my upcoming columns.  I hope this information encourages everyone to get involved in their communities in 2014.  Remember, the only way things get accomplished is by local citizens getting involved.

Key 1 – Local Responsibility

Economic development does not just happen.  There is no invisible force that creates jobs, provides new investment or expands the tax base authority of local governments.  People and organizations make economic development happen either through private or collective decisions.  As noted earlier in the piece, we argue that America is unique in the fact that economic development is largely a local responsibility.  There are federal, state and even private resources and initiatives that can be most helpful, but the decision to act or not act on economic development rests with localities.  For example, the U.S. Import/Export Bank is a wonderful resource for small businesses, but it is unlikely to be used or even accessed unless communities help link their local businesses with this resource.  Bottom line, pro-active communities and regions can and do change their prosperity through smart, well-worked and sustained economic development.

Key 2 – Smart Game Plan

We can no longer ride on past advantages. Today’s highly competitive global economy and society demands that American communities invest in developing smart game plans rooted in genuine development opportunities.  When asked about why so many communities are losing ground, one of our answers is that they have a dumb strategy. What has worked in the past may no longer make sense.  Two quick examples can illustrate this challenge. The first is rooted in the large number of communities still investing most of their development dollars and energy in business attraction. This strategy made lots of sense when industry was moving out of core cities to suburban and rural areas.  While it may still make some sense as part of an overall plan, it no longer makes sense as a sole strategy.  The second example is tied to communities that have prospered with industries that are part of the defense procurement cluster.  Chances are good that the growth in defense spending will decline as America winds down two wars and struggles to reduce massive federal deficits.  Are these communities prepared to help these mainstay employers shift focus to remain viable?