Communities die when they do not take economic development seriously. Their small businesses lack customers, and their leaders lack vision.
Communities that thrive have forward-thinking leaders who are unafraid to work hard. They take time to make plans and tap into the natural resources within their communities.
Keep reading to learn about the basics of economic development, from what it is to how to make it happen in your community.
Economic Development Basics
Economic development refers to how leaders develop and grow their community’s economy.
Economic development happens when firms improve their productivity and the people in their community in ways that lead to improved living standards.
In short, firms increase their productivity. Their employees earn more money. Everyone sees an increase in their living standard.
Communities that see successful economic development first experience increased productivity. They look at their local, natural talent and resources, and they capitalize on them.
Furthermore, companies that contribute to economic development will create a culture of contribution instead of a culture of work. The Debbie-do-nothing that clocked in and out of work does not exist in the contribution culture.
Companies will begin to call their employees teammates rather than employees because they work for a common goal. Employees work for themselves.
These same companies will offer incentives for their teammates, rewarding them as the team meets common goals.
As a result, team members will maintain their loyalty to their employer. They’ll be proud to produce, and they will want to contribute to their community and company.
More businesses will want to invest in the community when your businesses have this type of culture. Before you know it, you will see physical growth.
This article exemplifies how economic development looks when you have a single building housing dozens of businesses.
With increased productivity comes job creation.
Earn More Money
As companies begin to ramp up their production, they will earn more money. They will be able to promote team members and reward them for their work.
The unemployment rate will drop with development since more businesses mean more jobs. More individuals will begin to see the financial benefits of work and subsequent economic prosperity.
Increase Living Standard
As team members earn more money, they will increase their standard of living. They’ll begin to look for better housing and want to pour their money back into the economy. They’ll go out to eat, buy groceries, and purchase luxury items they couldn’t afford before.
Ultimately, economic development aims to help people. It gives them jobs and the opportunity for upward mobility and purpose.
Start Small, Aim Big
The basics of economic development start with small changes and big ideas. Forward-thinking entrepreneurs understand this. They look at what a community can produce that will serve the world, and they capitalize on that.
Furthermore, they put people to work, increase their wages, and ultimately increase the standard of living. A higher standard of living makes a community appealing to the outside, and it leads to even more growth.
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