Local governments address a wide range of economic development needs such as business development, attraction and retention, marketing, financing for business and real estate, tax incentives to support business expansion, education and training, small business development and infrastructure maintenance. Moreover, local governments can identify and provide the leadership necessary to organize and build coalitions and partnerships. Local government includes both elected officials and city government staff. Both have crucial roles providing leadership to the LED process and ensuring that it receives priority in terms of both funding and staffing allocations. Local governments perform many different tasks in support of local economic development. They include:

• analysis of the local economy;

• provision of leadership to local economic development;

• administration of economic development projects;

• provision of services or ensure their provision;

• provision of financing and other incentives to promote LED; and

• establishment and maintenance of an enabling environment that stimulates business growth.

Private and community sector participation

• provides the community with a wide range of resources and knowledge

• de-politicizes LED projects, thus allowing for their long-term sustainability

• the increase in resources and sustainability bolsters the confidence of potential investors, thereby increasing the  attractiveness of the community to businesses

• developing mobilization and consensus building skills prepares local government leaders for the challenges that emerge as participation increases and different perspectives emerge.

The private sector consists of for-profit businesses and their representatives. It includes:

• individual manufacturing or service sector commercial businesses (ranging from large state-owned corporations or multinational corporations to a sole trader),

• private developers; and

• chambers of commerce and other business support organizations (BSOs), sometimes called intermediaries.

The community sector includes all those parties not in the public or private sector. Key agents in the community sector include:

• individuals;

• professional associations;

• churches and neighborhood groups;

• educational institutions; and

• NGOs (non-governmental organizations that can operate more freely than regulated governmental units).

Source:

Swinburn, Gwen. Local Economic Development: Good Practice from the European Union (and beyond). Draft for Consultation. 2000.