Operating a business in an Economic Development Zone can offer benefits allowing a business owner to reduce its operating expenses and increasing the competitive advantage.
A prior literature review, Industry Analysis, and Research Case Study showed that there is little information about Economic Development Zone programs. The names of these different programs change regularly, which is tied to the introduction of new legislation or when the program expires. What most business owners do not know is that these programs and the operating condition of an Economic Development Zone can offer benefits to a business owner, allowing them to reduce their operating expenses by reducing the cost of doing business.
This empirical finding document identified a number of benefits and challenges that can influence a business’s operations in the Economic Development Zones. From this article, the business owner will realize that there is the potential for assistance from local, state and federal government to help a business relocate or expand in an Economic Development Zone. From the survey that was conducted for this article, only one out of three business owners knew about a local economic development office or the benefits available for a business working in an EDZ. This lack of awareness is a major contributing factor for why these programs are not successful. Additionally, the survey identified unique benefits and challenges to a business owner. The benefits include lower labor and real estate costs and delay in paying custom duties afford in Foreign Trade Zones. Challenges to a business operating in these zones include finding qualified employees and transportation issues.
After reading this article, a business leader can make informed decisions about the merits of these economic development programs and the potential to relocate their business operation in an Economic Development Zone.
Author: Hugh Bettendorf
Link: https://doi.org/10.28945/4339
Cite as: Bettendorf, H. (2019). Aligning resources and conditions to achieve an optimal business solution for operating in an Economic Development Zone. Muma Business Review 3(5). 55-69. https://doi.org/10.28945/4339