Role of Corporate Investments in Local Economic Development

David Schwegman^*
*Correspondence: David Schwegman, Department of Public Administration and Policy, School of Public Affairs, American University, USA, Email:

Introduction

Numerous Economic Development Organizations (EDOs) are abuzz about National Economic Development Week across the nation. Speaking out about their work and goals are EDOs from towns, states, regions, and even the US Economic Development Administration. The International Economic Development Council established Economic Development Week (EDW) in 2016 with the intention of raising public awareness of regional initiatives that improve quality of life, expand career development possibilities, and create jobs. Organizations that have worked toward, assisted, and facilitated the process are frequently visible to citizens when they see new enterprises opening and commercial developments. In helping communities take shape, economic development groups are essential. Here are five factors that companies, investors, and globally, local economic development (LED) has become a crucial planning strategy for local economies. The inception and expanding importance of LED planning approaches are inextricably linked to the shifting nature of the global economy, particularly the progress of globalisation. Initially arising in Europe, the subject of driving LED planning later expanded to other advanced economies. Sub-Saharan Africa and Latin America's late-developing economies have experienced the geographical diffusion of LED. It has been amply shown that this place-based strategy is relevant to modern development planning in the global South. The application of LED strategies can improve the chances for human development in the global South, according to new findings [1].

Description

A division of local economic development is community economic development. The foundation of community economic growth is two fundamental ideas. First, the focus for building human, social, and physical resources should be the community or neighbourhood. Second, the foundation of any development activity must be the local resources, notably organisational and human. The goal of community economic development is to create new wealth from local resources by repositioning them as capital magnets. This can be achieved through repurposing local structures to house artists and entrepreneurs from the area as well as through other similar measures that boost locals' self-esteem and offer them more economic influence over their own economic future [2].

As communities plan for company growth and resilience throughout economic contraction and downturn, economic development is more crucial than ever. Local economies are supported and expanded through the initiatives of economic developers. They support the neighbourhood businesses that employ locals and the municipality's finances, which are used to pay for the services that locals require to live well. Investing in economic development to make sure that the businesses in your community are successful is a crucial strategy for increasing your revenue. The paper presents the findings and lessons learnt through the implementation of technical assistance work for local economic growth and regulatory simplification in Bosnia and Herzegovina. It offers suggestions and a methodology on how to fix current market and regulatory shortcomings elsewhere in order to promote private investments, business development, and the expansion of the private sector locally. The research gives a road map for similar policy reforms elsewhere and indicates that bottom-up reforms may be a strategy for igniting reforms at the national level or levels. In localities that execute these reforms, the paper describes how this work might result in private investments, job and enterprise growth. Finally, this strategy may work well for collaborating with regional authorities on larger municipal infrastructure and economic growth [3-5].

Conclusion

The competition between communities is escalating in a growing global economy. EDOs try to entice developers and new enterprises. EDOs seek to help local businesses get past obstacles since they are well aware of their requirements and difficulties. EDOs establish long-term links with businesses that provide on-going assistance to reinforce community bonds. Businesses not only produce jobs, but also the goods and services necessary for a thriving neighbourhood. EDOs focus on companies and investors who provide the facilities that the community they serve wants. EDOs can contribute to ensuring that an economy is varied and sustainable since they have a thorough awareness of their business environment. Environmental protection has become a global trend thanks to the UNFCCC and the Paris Climate Agreement, which set the environmental agenda for many years to come. As a result, these publications posed a number of previously unheard-of difficulties for industry, shifting the emphasis away from the primary function of commercial benefit and toward the trade-off between profit and social responsibility. New criteria for defining the investment environment have emerged as a result of the necessity to adjust corporate plans to the current agenda. In this regard, the issue of the organisational and legal framework in which investment activities may be conducted as well as the potential use of new regulatory tools to streamline the process of luring in environmental investments come into play. Corporate investment funds could be seen as a viable tool for advancing the objectives of global climate agreements in the current circumstances. The goal of the study is to evaluate how corporate investment funds contribute to the achievement of global climate agreements' goals and to explore the potential for developing management efficiency-improving strategies for corporate investment funds in relation to the UNFCCC, the Paris Climate Agreement, and from a comparative standpoint. The investigation of international and Russian law enforcement procedures in the area of corporate activities is the foundation of the study's methodology. In order to choose management strategies for the operation, the framework of the investment mechanism and the institutional environment, which is represented in the model of the business landscape of a corporate investment fund, takes into account the relationship between corporate governance represented by big businesses and the state.

Conflict of Interest

None.

References

1. Asheim, Bjorn. "Differentiated knowledge bases and varieties of regional innovation systems." Innov 20 (2007): 223-241.

Google Scholar, Crossref, Indexed at

2. Asheim, Bjorn T. "Constructing regional advantage: Platform policies based on related variety and differentiated knowledge bases." Reg Stud 45 (2011): 893-904.

Google Scholar, Crossref, Indexed at

3. Atterton, Jane. "The'strength of weak ties': Social networking by business owners in the Highlands and Islands of Scotland." Sociologia Ruralis (2007).

Google Scholar, Crossref, Indexed at

4. Avdikos, Vasilis and Janet Merkel. "Supporting open, shared and collaborative workspaces and hubs: Recent transformations and policy implications." Urban Res Practice 13 (2020):348-357.

Google Scholar, Crossref, Indexed at

5. Balland, Pierre-Alexandre. "Proximity and the evolution of collaboration networks: evidence from research and development projects within the global navigation satellite system (GNSS) industry." Regional Stud 46 (2012):741-756.

Google Scholar, Crossref, Indexed at