What is Economic Development and What Does an Economic Development Organization Do?

 Economic development is a crucial aspect of any community or region's growth and prosperity. It refers to the process of creating and improving economic opportunities and conditions in a particular area, with the aim of increasing employment, income, and overall well-being of its residents. Economic development organizations (EDOs) play a vital role in facilitating this process by working with existing businesses to keep them healthy and happy, government entities, and other stakeholders to identify and address economic challenges, attract investment, and promote sustainable growth.

In this blog, we will delve deeper into the concept of economic development, explore the different approaches and strategies used by EDOs, and discuss the benefits and challenges of this complex and ever-evolving field. Whether you're a business owner, policy maker, or simply interested in understanding the factors that shape your local economy, this blog will provide valuable insights into the world of economic development.

First, let’s clearly define the economic development

What is Economic development?

According to the definition by British Columbia “Economic Development is programs, policies or activities that seek to improve the economic well-being and quality of life for a community.”

Further, economic development refers to the process of creating and improving economic opportunities and conditions in a particular area. This can include measures such as keeping the existing businesses thriving and happy, boosting employment, improving the standard of living, and promoting overall economic growth. The goal of economic development is to create sustainable economic growth that benefits all members of the community, including individuals, businesses, and local governments.

Economic development can take many forms and may be driven by a variety of factors, including government policies, business investments, and community initiatives. Some common strategies for economic development include attracting new businesses to an area, supporting the growth and expansion of existing businesses, investing in infrastructure and transportation systems, and promoting education and workforce development programs.

To keep everything balanced and working, we need economic development organizations. The top economic development organizations can undertake the activities of economic development by implementing the right economic development strategies, being in sync with the government and simultaneously working with the elected leadership and stakeholders to keep them updated about the EDO activities.

Why is Economic Development Important?

The long-term economic growth and prosperity of a community are important and the same is facilitated by economic development thus, it is an important tool. It creates job opportunities and helps to build stronger, more resilient communities. By investing in economic development, governments, businesses, and individuals can help to create a better future for themselves and their communities.

Economic development in the right direction can steer the local community towards a better living, higher income and cash flows inside the community and increased tax revenue.

Now that you know the importance of economic development, let’s talk about

What is an Economic Development Organization?

An Economic Development Organization (EDO) is a public or private organization that is dedicated to promoting local economic development in a particular area. EDOs work to keep the existing business thriving and healthy, support the growth and expansion of existing businesses,  identify new businesses by implementing incentives,  and promote overall economic growth and development.

EDOs typically work with a variety of stakeholders, including local governments, businesses, and community organizations, to identify and address economic challenges and opportunities in the area. They may also provide a range of services and resources to businesses and entrepreneurs, such as assistance with site selection, access to financing and incentives, and support for workforce development and training.

EDOs may be structured in different ways depending on their location, size, and scope of work. Some are operated by local governments, while others are private, non-profit organizations. EDOs may also specialize in specific areas of economic development, such as technology or tourism, or may focus on specific industries or sectors.

Overall, EDOs play a vital role in promoting economic growth and development in their communities by providing essential resources, services, and support to businesses and entrepreneurs. By working to attract new investment and promote sustainable growth, EDOs can help to create new job opportunities, increase incomes, and build stronger, more resilient communities.

Role of an Economic Development Organization

The role of an Economic Development Organization (EDO) is to promote economic growth and development in a particular area by attracting new businesses and investment, supporting the growth and expansion of existing businesses, and promoting overall economic prosperity. Some of the key roles and responsibilities of an EDO include:

Business attraction: EDOs work to attract new businesses and investment to the area by highlighting the advantages of doing business in the community and providing resources and support to businesses interested in locating or expanding in the area.

Business retention and expansion: EDOs also work to retain and support the growth and expansion of existing businesses in the area by providing resources, incentives, and support for workforce development and training.

Marketing and promotion: EDOs promote the area and its business advantages through targeted marketing and promotional efforts, including trade shows, advertising, and other outreach activities.

Infrastructure development: EDOs may also play a role in promoting infrastructure development and improving transportation and other essential services to support economic growth and development.

Workforce development: EDOs may work to promote workforce development and training programs to ensure that businesses in the area have access to the skilled labor they need to grow and succeed.

How can EDO Boost their Economic Development Activities?

Everything is turning digital these days and so are the ways of economic development. To boost your economic development activities, you must turn towards technologically advanced software to help you ace the game of economic development. 

One such software that can offer you the best possible ways of economic development is ProTRACKPlus. Specifically designed with economic developers with 30 years of experience, ProTRACKPlus is more than just the economic development full CRM functions tool and offers additional modules like a report generator, documents safety, customizable admin fields, and an intuitive search field to make your work faster, easier and more efficient. 

Additionally, to boost the business retention and expansion activities of any EDO, ProTRACKPlus has the capability to custom build and send surveys, automate reports to your leadership and do so much more than basic CRM software. You can analyze risks, overcome challenges, and find opportunities with the help of ProTRACKPlus.

What is economic development vs economic growth?

Economic development and economic growth are two related but distinct concepts. Economic growth refers to an increase in the production of goods and services within an economy over time, usually measured by the gross domestic product (GDP). Economic development, on the other hand, refers to the broader process of improving the economic, social, and political well-being of a society. It involves the creation of conditions that enable sustainable and equitable growth, such as improving education, healthcare, infrastructure, and access to resources. While economic growth is a necessary condition for economic development, it is not sufficient. A focus on economic development includes improving the quality of life for individuals and creating opportunities for sustainable economic growth.

Take Home Message

To start with economic development you must be aware of the community needs and the ways to grow a community while keeping the existing businesses happy. With the help of ProTRACKPlus, you can implement the right technology that will help you streamline the processes of your economic development organization.

You can request a free demo of the ProTRACKPlus and try the no-obligation software today.