Economic Development Zones were created to reduce unemployment in depressed areas of the country. Understanding why there is a disconnect between companies and the government might bring to light problems which would allow for improvement to the program.
This article will provide information about the Economic Development Zone enabling the reader to better understand this program. Business leaders will be able to make an informed decision about the merits of this program.
The basic purpose in creating an Economic Development Zone through local, state, and federal government agencies is to reduce unemployment in depressed areas of the country. These different levels of government offer incentives to companies to relocate to these areas or expand their businesses by creating Economic/Empowerment/Enterprise Zones. These incentives for relocating, expanding, or starting a business in these Economic Zones have the potential to be very lucrative for a company.
Businesses look for every opportunity to reduce their operating expenses by reducing the cost of doing business. The goal of companies is to reduce their overhead, and the goal of the government is to create jobs. Both goals should be mutually supportive, yet this is not the case. It seems companies are not taking full advantage of federal and state economic development programs.
From prior research conducted during a literature review, the researcher found there is limited company literature that talks about the merits of these programs, and there is limited company participation in these types of programs. Additionally, there is very little information about these programs beyond local, city, county, and regional webpages.
Author: Hugh Bettendorf
Cite as: Bettendorf, H. (2017). Understanding how a company can operate in an Economic Development Zone. Muma Business Review, 1(19). 241-249.