Whether you attracted a value-added business to your community or it just walked in off the street, it is important to assess the impact of the proposed business on your community. This includes the economic and social benefits the business will bring to your community. Economic multipliers are useful tools in assessing these impacts on your community. However, you also need to assess the potential negative impacts the business may have on your community. In addition you need to evaluate whether your community can meet the infrastructure and social needs of the new business. This includes utilities, schools, housing, recreation and other needs of the business and its employees.
For more information on this topic, see the links listed below of articles posted on related Web sites.
Assessing Community Impact
- Measuring the Impact of New Business in Town - Mississippi State University Extension - The immediate economic impact of a new firm can be significant, depending on the level of investments and tax abatements given to attract the plant to a community.
- Costs of Community Services – Ohio State University Extension -- Does the increased tax revenue from industrial development balance the increased demand for services resulting from industrial development?
- Conservation Easements – Ohio State University Extension -- A conservation easement is a restriction placed on a piece of property to protect the resources (natural or man-made) associated with the parcel.
- Land Trusts – Ohio State University Extension -- Land trusts are local, regional, statewide or national organizations that are established to protect land and its resources.
- The Impact of New Generation Cooperatives on their Communities -- USDA – Study of five new generation cooperatives and the impact on their communities.
- Economic Strain and Community Concerns in Three Meatpacking Communities – USDA -- Compares perceptions of economic strain, community concerns, community services and nutritional well being between community residents and Hispanic immigrants.
- Socioeconomic Impacts of Agricultural Processing Plants – USDA -- Interview with residents and community leaders on the impact of agricultural processing plants.
- The Importance of Economic Multipliers – University of Nevada Extension – Forecasting the impact of an economic activity.
- Multiplier Analysis for Agriculture and Other Industries – Oklahoma State University Extension -- This fact sheet discusses multiplier analysis -- the total impact on an economy when some change is caused by an external force or decision such as location of a new business or government facility.
- Economic Multipliers - University of Arkansas – How Communities can Use them for Planning.
- Economic Base Multipliers and Community Growth – University of Missouri Extension -- An economic base study gives detailed information about how a community earns its living.
- The Use of Multipliers in Economic Impact Estimates – Purdue University Extension -- To make good economic development decisions, communities must use whatever information and tools are available.