Economy and business climate

Primary Employers Make Local Economy Work

The community has a healthy local economy when it has a positive net inflow of money that results in growing per capita income. One way to accomplish this is through what is known as ”˜primary’ or base jobs.

Primary employers are companies that infuse new dollars into the local economy by producing goods and services in excess of what can be consumed in the local marketplace. Those products and services are sold outside the local area and income is ”˜imported’ in exchange. That income makes its way into the community in the form of above average wages, capital investments, and local purchases.

One consequence of primary employers is the creation of ”˜spinoff’ or support jobs. Spinoff jobs are created as the result of the demands of goods and services generated by primary employers. These spinoff jobs redistribute wealth but do not create it.

A Positive Business Climate 

To attract and retain primary employers with their attendant benefits to residents and the community, a community must have a good business climate.

Business climate’ is defined as the extent to which the political and policy environments of a particular state or locality, compared with other jurisdictions, are seen to be supportive or burdensome to businesses.

The implication, of course, is that communities with a good business climate will attract and retain primary employers whereas those that don’t will be shunned by the business sector.

Major cost factors that affect business climate include land, labor, taxes and regulations; and major non-cost factors are quality of life and attitudes by the community and government toward business.

Source: Corporation for Enterprise Development (CFED)