What is Economic Development
Economic development is more than just a buzzword; it’s a transformative process that creates conditions for economic growth and improved quality of life. According to the U.S. Economic Development Administration, economic development involves expanding the capacity of individuals, firms, and communities to maximize their talents and skills to support innovation, lower transaction costs, and responsibly produce and trade valuable goods and services.
In this blog, we’ll explore what economic development means, its importance, and how it’s shaping communities like Summit County.
The Goals of Economic Development
At its core, economic development aims to foster innovation, create jobs, and build a resilient economy. It’s about creating an environment where businesses can thrive and communities can prosper. Through these efforts, regions can support businesses, grow new industries, and enhance the quality of life for residents. Economic development also focuses on creating an entrepreneurial ecosystem, connecting innovators to the resources, networks, and funding they need to succeed.
Economic growth stems directly from successful economic development efforts. While growth measures the increase in a region’s economic output, development focuses on the strategies and systems needed to make that growth sustainable and impactful.
Why Economic Development Matters in Summit County
Summit County’s economy heavily depends on tourism and outdoor recreation, with 63% of jobs tied to these industries. While these sectors are vital to the region, over-reliance on them creates vulnerabilities. A downturn in tourism due to economic or environmental factors could have a significant impact on the local economy, highlighting the need for diversification.
The county also faces unique challenges. Despite having a highly educated workforce—40% of residents hold at least a college degree—there is a lack of job opportunities that match this talent. Additionally, Summit County’s median wage, at $55,640 in Q1 2023, is significantly lower than surrounding areas like Pitkin County ($73,736) and Eagle County ($66,352), according to NWCCOG. Until the creation of the Summit Economic Partnership (SEP), local businesses lacked a dedicated economic development partner to address these disparities. SEP’s efforts focus on fostering opportunities that reflect the community’s needs and potential.
How Economic Development Works
Economic development encompasses a range of strategies aimed at improving economic conditions. One of its primary focuses is supporting existing businesses to help them navigate challenges and scale effectively. Attracting new businesses is another key component, as it brings fresh opportunities, investments, and jobs to the region. Building strategic partnerships is crucial for success, connecting businesses to resources, networks, and organizations that amplify their growth potential.
For instance, SEP fosters these connections through initiatives like its support for Erwin Germain, founder of TreadShare. With SEP’s guidance, Erwin participated in the Rockies Venture Club HyperAccelerator, pitching his business to angel investors and gaining valuable resources to scale his company. This is just one example of how strategic economic development initiatives can make a tangible difference.
The Challenges of Economic Development in Rural Areas
Rural areas like Summit County face distinct challenges in driving economic development. Job and labor shortages can limit business growth, while high costs of living and housing shortages deter potential residents and employees. Additionally, slow population growth can restrict both the customer base and talent pool for local businesses.
These challenges underscore the importance of infrastructure and support systems in rural economic development. By addressing these issues and creating opportunities that attract and retain talent, rural areas can build a more sustainable economic future.
The Role of Infrastructure in Economic Development
Infrastructure is the backbone of economic development, providing businesses with the resources they need to operate efficiently. Reliable transportation systems, broadband access, and utilities reduce operational costs and improve connectivity, making regions more attractive to investors and businesses.
In Summit County, broadband access is a critical component of infrastructure development, particularly for rural areas. It’s encouraging to see significant local investments in this area. The Town of Breckenridge has committed $26 million to improving broadband infrastructure, a project that has been underway since 2019. This investment aims to enhance internet service throughout the town, making it easier for businesses to operate efficiently, attract remote workers, and foster tech-driven industries. Initiatives like these not only support existing businesses but also create opportunities for new ventures and innovation, paving the way for long-term economic growth.
Innovation and Technology in Economic Development
Fostering innovation is another cornerstone of economic development. By supporting startups and investing in technology hubs, communities can position themselves as leaders in emerging industries. Access to cutting-edge tools and resources, like artificial intelligence or 3D printing, can attract tech-savvy businesses and entrepreneurs, driving sustainable economic growth.
How to Support Economic Development in Summit County
Economic development is a community effort, and there are many ways residents and businesses can get involved. Donating to SEP helps support initiatives that create opportunities and strengthen the local economy. Attending SEP events allows community members to learn, network, and contribute to shaping the region’s future. Supporting local businesses is another powerful way to contribute, as it keeps money circulating within the community and fosters a more vibrant local economy.
Economic development is about more than just economic growth—it’s about creating a thriving, sustainable ecosystem where businesses, individuals, and communities can prosper. In Summit County, SEP is dedicated to diversifying the economy, supporting businesses, and connecting entrepreneurs with the resources they need to succeed. If you have questions or want to get involved, reach out to us. Together, we can build a stronger, more resilient Summit County.