An Economic Development Company (EDC) is a non-profit or for-profit business that aims to stimulate local economies by attracting new businesses to an area and helping existing businesses expand. They work closely with local government employees and offer support services to help businesses grow.
An economic development company (EDC) is a business that exists solely to increase revenue streams and stimulate economies in key geographic areas. This is achieved through the development of new business and employment opportunities, which may also include the relocation or expansion of certain businesses. An economic development company typically functions as a non-profit business model started by an investment group, community activist group, or even a local government agency. In some cases, however, an EDC can operate as a for-profit business by attracting investors who expect a return on equity.
Funding for an economic development company can come from a variety of sources. Many times, initial investors provide capital to create funding opportunities. As most of these non-profits grow, however, many eventually receive funding and engage in capital campaigns to raise the funds needed to support a single business improvement district.
The main objective of an economic development company is to stimulate local economies. By attracting new businesses to an area and helping existing businesses expand, communities thrive by creating new employment and consumption opportunities. Often, an economic development firm relies on the pro bono services of accountants, investment analysts, marketing professionals, and other volunteers with expertise in various aspects of fundraising and fund distribution until the organization can afford to pay qualified employees to perform these tasks.
An economic development company usually works closely with local government employees, such as mayors and city planners. This allows agencies to decide on the best types of companies to provide funding to support community growth. It is not unusual to find board members of an economic development company sitting on other organizational boards that focus on community betterment, as well as networking with other agencies and organizations important to an EDC’s efforts.
In addition to attracting new businesses to an area, an economic development firm may also offer marketing courses, finance courses, business management training, and a variety of other support services to help existing businesses expand revenues and growth opportunities. Work. Often compared to chambers of commerce, some economic development corporations organize frequent workshops and seminars for small businesses, as well as guest lectures. Many also offer local businesses a variety of networking opportunities to connect business owners with each other and with community members.
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