Economic development is vital for economic growth in an economy. It promotes high-wage employment and facilitates a better quality of life.
While the role of economic developers is frequently overlooked, producing and sustaining jobs in an area is a key component of a prosperous economy and society. Here is why economic development is important.
- Diversification of industry: A key component of economic development is the diversification of the economy, which reduces a region’s reliance on a single industry. For example, while tourism is important for job creation in the Orlando area, economic development efforts by the FL Economic Development council also help to grow industries other than tourism, such as Digital Media, Innovative Technologies, Healthcare, Life Sciences, Aerospace & Defense, Aviation, Advanced Manufacturing, Business Services etc.
- Business retention and growth: Existing businesses that are growing their operations produce a major percentage of jobs in the economy.
- Increased tax revenue: Increased corporate presence in a region means more tax income for community initiatives and local infrastructure.
- Creation of new jobs: Economic developers give crucial help and information to businesses that generate employment in an economy. They assist new-to-market and established businesses in connecting with the services and partners they require to expand.
- Strengthening the economy: By recruiting and increasing a region’s primary businesses, economic development serves to safeguard the local economy against economic downturns.
- Higher quality of life: Better infrastructure and more employment boost a region’s economy and increase the standard of living for its citizens.
It is critical to understand that economic growth is not the same as community development. The process of making a community a better place to reside and do business is known as community development. Economic development is simply creating sources of wealth that result in benefits for the community.