What is Economic Development?
What is Economic Development?
EDA's Definition of Economic Development
Economic development is a long-term process of guiding growth so that jobs, investment, and tax base expand in ways that strengthen community wealth, inclusion, and resilience to economic, social, and environmental shocks.
This definition reflects the evolving nature of economic development and the important role it plays in helping communities create opportunities, build resilience, and improve quality of life.
Economic development is more than attracting businesses or creating jobs. It is about creating the conditions that allow people, businesses, and communities to thrive over the long term.
What Does This Mean?
Economic development helps communities:
- Create and retain jobs
- Support local businesses and entrepreneurs
- Attract investment and new opportunities
- Strengthen and diversify local economies
- Grow the municipal tax base
- Improve quality of life
- Build resilience to economic, social, and environmental challenges
- Position communities for long-term success
Economic development is not a single project, grant, or initiative. It is an ongoing process that requires leadership, planning, collaboration, and action.
A Modern Approach to Economic Development
Today's economic development professionals work at the intersection of business, government, and community. They help communities respond to changing economic conditions while balancing growth, sustainability, inclusion, and resilience.
Successful economic development recognizes that factors such as workforce availability, housing, infrastructure, education, health services, community amenities, and quality of life all influence a community's ability to attract investment, support businesses, and remain competitive.