“If communities just have good roads, well-funded police, and strong schools, business will follow.” In my twenty-plus years working in the economic development field, I bet I have heard that statement at least a few dozen times. I get it: if safety, transportation, and education are ignored, it is much harder for companies to invest and grow. But the same people who make this type of statement are also likely to be the type to say, “Government should work more like a business.” I’m here to tell you that these people cannot have it both ways.
Think of nearly any successful business. Actually, for this exercise, let’s consider Caterpillar. Do they focus on their product? Absolutely. Caterpillar machines are high-quality, well-designed, durable, innovative, and responsive to customer needs. But does Caterpillar just make machines and hope that people will call them and place orders? I’m sure that happens to a degree – their reputation is very strong – but they also have a robust marketing team, an entire network of dealers, and an army of customer service agents. Successful businesses know that it is not just about having great “basics” but also about ensuring their customers are happy and introducing their offerings to new markets. Certainly, the cost of making a product dwarfs the cost of marketing it, but the latter still exists.
Villages, cities, and counties need to have the same approach and with a similar proportion. The role of economic development is akin to business development. When an organization like Greater Peoria EDC or a city’s economic development team works to position a region for investment, that’s marketing. It’s understanding our local assets, determining how those assets can meet the needs of those outside the region, strategizing how to communicate with those parties to share the story, and building relationships that lead to a “sale.” Managing existing “customers” is just as important. Economic developers use business outreach to build relationships with local employers and investors, helping them overcome obstacles to growth and capitalize on opportunities. When a community’s customers do well, the community itself does well.
Like account executives, economic developers also serve as a feedback loop to community leaders. While social media and other forms of communication do a good job (or bad job, depending on your perspective) of letting leaders know how individuals feel, learning about business sentiment can be more difficult. A good outreach system can help bring to light both individual company issues, such as an infrastructure deficiency or onerous bureaucracy, and more systemic trends, such as an eroding workforce quality or a worsening cost of doing business. Failed business attraction projects can yield important information about where a community is falling short and fuel initiatives for improvement.
The first week of May is “Economic Development Week,” and while it is not likely to make it onto your calendars, it is a time for me to celebrate the work of the Greater Peoria EDC and all of our partners. And while economic development is its own profession that includes unique training, disciplines, and ethics, it’s also composed of a variety of team members. That includes Chambers of Commerce, planning agencies, nonprofits, government employees, elected leaders, and business leaders. Together, we are an interconnected system working to grow our economy so that the fundamentals of public service can be addressed.