Purpose, Power, and Place: A Community-Centered Blueprint for Modern Economic Development

Economic development is not just about attracting investment or increasing tax revenue; it is fundamentally about improving the quality of life for all residents. Building on the idea of intentional and inclusive advocacy, effective economic development requires placing community needs at the center of strategy. This means engaging with residents early and often, particularly those whose voices are traditionally absent from decision-making spaces. Community engagement should not be an afterthought or a box to check, but a core principle that shapes how projects are scoped, funded, and delivered.

Municipal teams must use both qualitative and quantitative data to understand local conditions. For example, workforce participation rates, housing affordability metrics, and small business viability indicators provide a baseline. But these numbers must be interpreted through direct conversations with residents and local business owners. Participatory planning methods, such as community asset mapping and inclusive charrettes, can surface priorities that traditional data sets overlook. When economic development decisions align with resident priorities, projects are more likely to achieve long-term success and foster trust in local government institutions¹.

Using Policy Tools to Drive Inclusive Growth

Once community needs are clearly identified, municipal leaders must deploy policy tools that intentionally support inclusive growth. This includes leveraging zoning, permitting, tax incentives, and procurement policies to shape equitable outcomes. For example, cities can use community benefit agreements (CBAs) to ensure that large-scale developments deliver tangible value to local residents, such as job training programs, affordable housing units, or small business support².

Economic development professionals should also evaluate the accessibility of existing tools. Are incentives structured in a way that favors large corporations over local entrepreneurs? Can small minority-owned businesses realistically compete for city contracts? Addressing these questions requires a review of internal processes and a commitment to equity in implementation. The City of Portland, Oregon, for instance, revised its procurement policies to increase participation by disadvantaged, minority, and women-owned businesses, resulting in a measurable increase in contract awards to those firms³. Policy reform is a powerful lever and must be used with both precision and purpose.

Supporting Small Businesses as Anchors of Local Economies

Small businesses play a critical role in economic development, particularly in historically underserved neighborhoods. They generate jobs, provide essential goods and services, and often reflect the cultural identity of the communities they serve. Yet these businesses frequently face structural barriers to growth, including limited access to capital, commercial displacement, and regulatory complexity. A practical economic development strategy must include targeted initiatives to support and retain these enterprises.

Programs such as microlending, technical assistance, and commercial rent stabilization can help create a more supportive environment for small businesses. Cities like San Antonio, Texas, have implemented neighborhood commercial revitalization programs that offer facade improvements, small grants, and marketing support to legacy businesses in disinvested corridors⁴. These kinds of place-based investments not only strengthen local economies but also help preserve community character. Economic developers should regularly consult with business owners to co-design programs that reflect actual operational challenges and aspirations.

Workforce Development as a Core Component

Economic development is incomplete without a robust workforce development strategy. Aligning education, training, and employment opportunities ensures that residents are equipped to participate in and benefit from economic growth. Municipal governments play a coordinating role in this space, connecting employers, educational institutions, and non-profit partners to meet both current and future labor market needs.

Successful workforce initiatives are demand-driven and data-informed. For instance, the City of Louisville, Kentucky, used labor market data to identify growing sectors like healthcare and advanced manufacturing, then partnered with local colleges to create fast-track certification programs tailored to employer needs⁵. Programs that combine wraparound services such as childcare, transportation assistance, and career coaching are especially effective in increasing retention and completion rates among low-income participants. Workforce development should not be treated as an auxiliary program but as a primary strategy for inclusive economic growth.

Measuring Impact and Adjusting Approaches

A key best practice in economic development is implementing systems for evaluating impact and adjusting strategies based on what is learned. Too often, cities measure success solely by inputs—dollars spent or jobs created—without assessing whether those benefits reached the intended populations. Disaggregated data by race, income, and geography is essential to understanding who is actually benefiting from economic initiatives.

Municipalities should establish performance metrics linked to community-defined outcomes. For example, tracking the number of local hires on public projects, the percentage of contracts awarded to local vendors, or increases in neighborhood-level median income can provide a clearer picture of equity impacts⁶. Cities like Minneapolis have published annual economic inclusion reports to hold themselves accountable and inform stakeholders of progress⁷. Evaluation is not just about accountability—it is a tool for continuous learning and improvement.

Building Long-Term Relationships with Stakeholders

Relationships are the currency of effective economic development work. Long-term partnerships with community organizations, business associations, workforce boards, and educational institutions create the foundation for shared success. These relationships must be nurtured over time, not just activated when a major project is on the horizon. Consistency and transparency build the trust needed to navigate inevitable challenges.

One effective approach is to formalize stakeholder engagement through advisory councils or standing committees that meet regularly to provide input on economic development priorities. These bodies should reflect the diversity of the community and include representation from a range of sectors. By institutionalizing collaboration, municipal governments can ensure that economic development decisions are more responsive, resilient, and reflective of collective goals⁸.

Conclusion: Leading with Purpose and Accountability

Economic development is not a neutral process. Every decision has implications for who benefits, who is burdened, and who gets to shape the future of a place. Municipal teams must approach this work with humility, strategy, and a commitment to justice. Advocacy, as the user notes, is about standing with others—not for them—and this ethos should guide every policy tool, partnership, and project.

By centering residents, aligning tools with inclusive goals, and continuously measuring impact, municipal governments can drive economic development that is equitable, sustainable, and rooted in the lived realities of their communities. This is not easy work, but it is necessary—and the responsibility lies with all of us who have the privilege of shaping local economies.

Bibliography

1. International Economic Development Council. “Community Engagement and Economic Development.” IEDC Research Reports, 2020.

2. Gross, Julian, Greg LeRoy, and Madeline Janis-Aparicio. “Community Benefits Agreements: Making Development Projects Accountable.” Good Jobs First and the Los Angeles Alliance for a New Economy, 2005.

3. City of Portland. “Procurement Diversity Annual Report.” Office of Management and Finance, 2022.

4. City of San Antonio. “Neighborhood Commercial Revitalization Program.” San Antonio Economic Development Department, 2021.

5. Kentucky Center for Statistics. “Labor Market Information Dashboard.” Commonwealth of Kentucky, 2020.

6. PolicyLink. “Equity Indicators for Local Economic Development.” PolicyLink, 2019.

7. City of Minneapolis. “Economic Inclusion Annual Report.” Minneapolis Community Planning and Economic Development Department, 2022.

8. National League of Cities. “Local Economic Development and Stakeholder Engagement.” NLC Research Brief, 2021.