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Showing posts from June, 2013

Economic Assets & Liabilities

Creating an inventory of the community's economic assets and liabilities is the very first, most fundamental step in creating a successful economic development strategy. Simply put, it's looking at what makes the area good for business and what doesn't.

An economic asset is anything that makes the region unique and better for businesses. This may include close proximity to an airport, a railroad running through town, a low crime rate, or an above-average school system. Assets make the community more attractive to businesses.

An economic liability is anything that doesn't make the region attractive to businesses. This may be a poorly maintained infrastructure, unreasonably high taxes and impact fees (water and sewer), a high crime rate, or a failing school system. Liabilities may run the businesses away.

Three things must happen once the assets and liabilities are gathered:

Assemble knowledgeable people who can help you strengthen the assets and weaken or eliminate the l…

Multipliers: Retail is Good

Retail is responsible for a great deal of economic activity. Here are some of the multipliers, or economic consequences stemming from retail transactions.
First and foremost, when you purchase something at the retail level, you are purchasing a product that was manufactured and transported to you. It was not created on site. Therefore, the retailer has to pay the actual  producer some percentage of the dollar amount you spent. When this happens, money leaves the retail sector and flows to the industries where the actual production and distribution took place.
Second, all retailers purchase inputs from regional suppliers: shop space, utilities, advertising, etc.
Lastly, all retailers must pay their workers, who in turn, spend their money.
A few other benefits of retailers include: leakage plugging, shopping options, visitor attraction, and complementary purchases at other stores. It's rather easy to see how other industries and businesses benefit economically from the existence of…

During the Day I...