This Thing Called “Economic Development”

There is this seemingly paradoxical world that those of us bridging business and social impact exist in. Anyone in the economic development realm will tell you it is nearly impossible to explain what we do to others. Even our own mothers can’t explain it and not because they don’t try to show us off to anyone who will listen. They usually stop at “She does something with business and it’s really complicated stuff, but it’s to help people. Look at this picture of her with these important people.”

In the modern era, where business and social impact are often seen as opposing forces, there is an ever growing group of professionals who exist within the synergies of these two domains. For those of us working in economic development, we see a unique opportunity to blend the goals of financial growth and social progress. We understand that economic development is not solely about creating wealth but about fostering sustainable and inclusive growth that uplifts communities, supports local economies, and addresses social disparities.

The Convergence of Business and Social Impact

Traditionally, business has focused on maximizing profits and shareholder value, while social impact work has targeted social good, often through nonprofits, NGOs, or government initiatives. But as societal challenges become more complex and urgent, we are witnessing a shift. Companies are increasingly seeing that their growth depends on their ability to address social issues, and social impact organizations realize that sustainable change requires economic viability.

This convergence reflects a deeper understanding: profit and purpose are not mutually exclusive. In fact, when balanced thoughtfully, they can amplify each other. Economic development professionals see this firsthand as we work with businesses to integrate social objectives into their core missions, enabling them to build resilience while contributing to the communities they operate in.

A New Paradigm for Success

To foster real economic growth, companies must consider more than just the bottom line. This might mean investing in workforce development, promoting equitable hiring practices, supporting local suppliers, or implementing environmentally responsible practices. These actions are not mere add-ons; they are critical elements of a sustainable business strategy. Economic developers, positioned as both business advisors and community advocates, understand that true success is achieved when businesses thrive alongside the communities they serve.

Take, for example, a company entering a new region. An economic developer with a dual focus on business and social impact would approach the entry strategy with a holistic view. They’d explore how the company’s presence could contribute to job creation, skill-building opportunities, and infrastructure development, while also considering ways to minimize environmental impact. This approach not only aligns with social goals but strengthens the company’s local reputation, builds loyalty, and establishes a foundation for long-term growth.

Leveraging Partnerships to Drive Change

One of the most effective ways to drive economic development at the intersection of business and social impact is through strategic partnerships. By working collaboratively, businesses, nonprofits, local governments, and educational institutions can leverage their unique strengths to create synergies that are far greater than the sum of their parts. These partnerships can support initiatives like affordable housing projects, job training programs, and environmentally sustainable infrastructure—all critical components of healthy, thriving communities.

For example, Main Street Assembly might bring together a software tech company, a local Small Business Development Center, and a cohort of women owned small businesses to build their capacity around inventory management. The tech company gains access to a pipeline of businesses for their product through the SBDC, the SBDC fulfills it’s mission of supporting small business owners from marginalized communities, and the women business owners are able to grow their businesses, create new jobs in the community, and contribute more to the local economy. In this way, all parties benefit, and the community as a whole sees long-term positive change.

Challenges and Opportunities at the Intersection

While the potential for creating positive impact is substantial, there are unique challenges for those of us working at the business-social impact intersection. For one, aligning incentives can be complex. Companies are often pressured to focus on short-term financial metrics, while social impact initiatives may require patience and a long-term perspective. Additionally, measuring social impact is often more nuanced than calculating profits, requiring sophisticated data analytics and evaluation methods. Most often, the different perspectives go into it with the right intentions, but are not able to gain and, more importantly, sustain momentum without the perspective that bridges the gaps and finds common ground.

Despite these challenges, the opportunity to create a more inclusive and sustainable economy is greater than ever. With a growing emphasis on corporate social responsibility, environmental sustainability, and equitable economic growth, economic developers are uniquely positioned to guide the next generation of companies toward models that prioritize both profit and purpose.

A Vision for the Future

Imagine a world where business success is not defined solely by quarterly earnings but by the positive contributions a company makes to society. Economic development professionals have the expertise and the vision to help realize this future. By working at the intersection of business and social impact, we can help companies embrace their role as drivers of social good and guide them toward practices that benefit both their shareholders and their communities.

In the end, economic development is about more than just economic growth—it’s about building resilient communities, empowering individuals, and creating opportunities for everyone to thrive. For those of us committed to this vision, the work is not always easy, but it is profoundly rewarding. As we bridge the gap between business and social impact, we are helping to create a world where economic success and social progress are not just possible but are, in fact, inseparable.