- Navigator
- Business Retention and Expansion (BRE)
- Prospecting and Business Attraction
If opening a new business or celebrating a company’s anniversary was like winning an Oscar, do you know who would be in the owner’s thank-you speech? The list might surprise you!
Recently, I attended the Chesapeake Basic Economic Development Course, a week-long IEDC-accredited program for those who are new to economic development or are looking to continue building their knowledge regardless of how long they have been in the industry. It is designed to help participants develop practical skills for implementing strategies and explore tools and resources to support ongoing sustainable economic development in their communities.
The course covers strategic planning, business retention and expansion, finance, workforce development, real estate development, neighborhood and community development, marketing and attraction, small business and entrepreneurship, and ethics. Anything but basic!
After completing the course, I was excited to share the ideas and insights discussed, but I wondered if anyone outside of my economic development circle would understand or care about how impactful this work is.
So, it got me thinking: Do you know all the players in your community who help attract and retain businesses and workers? While some are obvious, others work behind the scenes to make things happen.
When a business considers a new location, it’s not just about finding the right site or building. Other influential factors include workforce availability, utility infrastructure, transportation network, proximity to markets and customers, access to suppliers, regulatory and tax environment, business incentives, and overall quality of life for employees.
In this article, I’ll highlight some of the key organizations that contribute to the ecosystem that supports new and existing businesses within a community, driving economic development and helping ensure your city, state, or region remains a competitive and attractive place for business.
Before we dive into the list, it’s important to define economic development and explain why it matters. I highly recommend this fun YouTube video from Economic Development Winnipeg, which explains it using LEGO characters:
Economic development improves the financial well-being and quality of life in a community. This includes attracting new businesses, supporting existing ones, improving infrastructure, offering workforce training, promoting tourism, and encouraging foreign direct investment. These efforts are important because they help create jobs, increase prosperity, and build vibrant communities where people can live, work, and play.
Many organizations are involved in helping a business navigate the process of establishing and maintaining a new location to ensure that all regulatory, logistical, and operational needs are met. Let’s explore who some of them are.
Economic Development Agencies and Organizations (EDAs and EDOs)
Role: Provide comprehensive support for business expansion, including site selection, financial incentives, workforce development, local regulations, market insights, and connections to local suppliers and service providers.
They often serve as liaisons between the business and local government and help streamline processes like permits and approvals.
Examples:
- Local and regional EDAs and EDOs
- Small Business Development Centers (SBDCs)
Municipal and Regional Government Offices
Role: Assist with zoning, permits, business licenses, and compliance with local regulations while also implementing policies and programs to attract businesses and support local economic growth.
In addition, they often collaborate with companies on public infrastructure needs, such as road improvements or utility upgrades, that can support both the business and the community.
Examples:
- City, county, or state economic development offices
- City or county planning and zoning departments
- City, county, or state business licensing offices
Chambers of Commerce
Role: Provide a range of services to both new and existing businesses, including organizing networking events, offering business development resources, and advocating for favorable policies at the local, regional, and sometimes national levels.
They also help businesses by connecting them with potential clients and partners and providing information about the local business climate.
Example: Local, state, and regional chambers of commerce or departments of commerce
Real Estate and Site Selection Firms
Role: Assist with finding suitable locations for businesses, negotiating leases or purchases, and understanding local real estate markets.
These firms also provide critical insights into zoning laws, local demographics, and future development plans that may impact a business’s decision. They help navigate complex real estate transactions to ensure the business secures the best possible location for long-term success.
Examples:
- Commercial real estate firms
- Design and build firms that offer site selection
- Professional services firms specializing in incentives and advisory
- Independent consulting firms that specialize in an industry sector
Construction and Property Management Firms
Role: Oversee the construction or renovation of facilities, ensuring that the space meets the business’s needs and complies with building codes. They handle everything from project planning and site preparation to building design and construction management.
For new businesses, these firms facilitate the establishment of new locations, ensuring that facilities are ready for operation.
For existing businesses, they offer long-term property management services, including maintenance, repairs, and facility operations, to help maintain and optimize the functionality of their spaces.
Their expertise ensures that construction projects stay on track and that facilities operate smoothly over time.
Examples:
- General contractors
- Property management companies
- Construction management firms
Utility Companies
Role: Provide information on utility infrastructure, capacity, and incentives for new businesses.
Utility companies often collaborate with economic development agencies and organizations to provide custom energy solutions, like discounted rates or renewable energy options, to meet a business’s specific operational needs.
Examples:
- Local electric, water, and gas companies
- Regional energy providers
Transportation Service Providers
Role: Manage and develop transportation infrastructure, including roads, railways, ports, and airports, to support the efficient movement of goods and people.
These providers also work on securing grants or other funding to improve infrastructure in areas where businesses are expanding, ensuring long-term accessibility.
Examples:
- State departments of transportation
- Local transit authorities
- Port authorities
- Airport authorities
State and Local Labor Departments
Role: Administer a range of employment programs and services to help companies connect with available workers and ensure a strong local labor market.
They provide critical data on local employment trends, wages, and workforce availability, which helps companies make informed decisions about hiring.
Labor departments also manage unemployment insurance, job placement services, and training programs to support workforce development.
Examples:
- State departments of labor
- Local workforce agencies
Educational and Workforce Development Institutions
Role: Focus on building the long-term talent pipeline by providing vocational education, training, and specialized programs tailored to meet industry-specific skill demands.
They work closely with businesses to design customized training programs that ensure employees are well-prepared for both immediate and future workforce needs.
These institutions are key partners in connecting businesses with local talent and providing ongoing workforce development.
Examples:
- Universities and colleges
- Local community colleges
- Technical and trade schools
- Vocational schools/career technical education (CTE) programs
- Workforce development agencies
- Local workforce boards
- Job placement agencies
Financial Institutions
Role: Provide financing solutions, including loans, lines of credit, and other financial services to support business operations and expansions.
They may also offer advisory services on managing capital, tax credits, and local investment incentives that align with the business’s financial goals. This is particularly important for larger projects or companies expanding into new buildings and regions.
Examples:
- Local banks
- Credit unions
- Venture capital firms
- Community development financial institutions (CDFIs)
Local Childcare Agencies
Role: Support working families by ensuring access to affordable, high-quality childcare options.
They offer resources for finding childcare services, provide information on subsidized programs, and work to improve the overall quality and availability of childcare in the community.
By addressing the childcare needs of employees, these agencies help businesses attract and retain a skilled workforce, as reliable childcare is a significant factor for working parents when considering employment opportunities.
Examples:
- Local childcare resource and referral agencies
- Early childhood education centers
Legal and Compliance Advisors
Role: Offer legal support to ensure that all aspects of the business setup comply with local laws, including contracts, intellectual property, and employment law.
They play a key role in reviewing lease agreements, managing environmental regulations, and handling permitting issues that could delay or complicate the expansion process.
Example: Local law firms specializing in business law
Like my Basic Economic Development Course, this list of organizations is intended to provide a high-level overview rather than an exhaustive guide. Depending on the project, other entities such as business improvement districts (BIDs), business incubators, accelerators, nonprofit organizations, investment promotion agencies (IPAs), and local housing authorities may also play a role.
After reading this, you might wonder how a business even begins to consider a community for a new location. It could be through its own research, a business connection, or a customer request. Or a consulting firm specializing in economic development, site selection, or business attraction strategies may be involved 😉.
Interested in attracting jobs and investment to your community? Camoin Associates can help. Contact us to learn more!
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