.network glossary

The Enterprise and Economic Development Glossary

a resource of the .network library

business attraction

... a process of the development of a community. The quote below is from a resource paper about tourism as economic development. It serves here to introduce the process of attracting businesses to bring about economic development in a community (see the definition of enterprise and economic development). The second paragraph of the quote in the paper ends with the following sentence: This was the place where tourism was born. It could just as well have been stated: This was the place where business attraction was born. Business attraction requires, first, getting the attention of business decision makers.

Somewhere centuries ago a community decided to celebrate, and a festival was born. Vendors sensed that people would gather and be in a mood to buy their wares. Townsfolk realized that visitors from afar would need places to rest. Someone knew enough to organize the event and, if that person was a visionary, he knew that revelers would pay to watch the sun go down, that is if accompanying food and music were provided.

Visitors beat new paths to the community. Paths turned into roads. Vendors decided that the festival was sustainable, so they stayed on, calling the place where they gathered to do business the market. The community now had a commercial center. Dwellings that offered hospitality became inns and eating-places. The sun was reliable in its setting ... (source)

business attraction is the organization and maintenance of an infracture in a location that can accommodate entrepreneurial startups, expansions and relocations of enterprises with a tandum marketing strategy and commitment to provides services to prospects.

Those who are familiar with the history of economic development in North American understand what the railroads did during their 19th century westward expansion. As track was laid places for the development of communities were designated at stops along the way. Entrepreneus were immediately attracted as people settled in the various locations. The railroads and other transportation enterprises offered initial economic development services. Later banks, construction firms, and energy companies played an active role in recruiting businesses. As the process became more organized with such a variety of participants and leaders in progressive communities began to emerge, economic development efforts became programs within chambers of commerce.

After a point in the two scenarios, communities realized that there were needs to create jobs as their economies peaked. Strategies were organized around industrial development which remains a significant effort for many nations and communities throughout the World.

Much credit is given to Joseph Schumpeter for coining the phrase economic devlopment in the early 20th century. Industrial development roots go back further. There is a parallel in many places between shifts from strategies that are purely industrial to broader economic development and shifts from business attraction programs to those that all-encompassing enterprise development. For example, business retention and business expansion strategies have recently been lumped together with programs for business attraction.

See enterprise relocation, business development, business relocation

definition of business attraction / definition of enterprise attraction

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