Do you see more remodeled properties and more commercial businesses moving in your area?
According to Investopedia.com, an emerging market economy is the economy of a developing nation that is becoming more engaged with global markets as it grows. From a macro to a micro perspective of an emerging economy, we are going to say, for this article, an emerging market economy is a developing neighborhood or community becoming more engaged with municipal and regional markets as it grows. Emerging communities and neighborhoods provide high returns for investors and over time emerging communities and neighborhoods adopt reforms and institutions more like those of modern developed neighborhoods and communities, within a city, and region, to promote economic growth.
Respectfully, emerging neighborhoods and communities tend to transfer from a low, or moderate income community, to a middle to high class working community. Often these emerging communities move away from the industrial and manufacturing employment market to the services, information, and research employment market. As rental prices increase, and public housing sites fall, and rise again as mixed income, and mixed-use housing, pursuing, and earning market-based income may be the only solution to remain a resident of an emerging neighborhood. This means low income residents must quickly train in sustainable wage careers in industries that have room for growth. The industrial and skilled trades industries are always great career paths for healthy, able-bodied men, and women, as there is a growing shortage in skilled labor across America.
[Recognizing and Solving Childcare and Transportation Challenges to Increase Workforce Development Participation] - article coming soon.
To increase the city and region's tax base, each city works hard to convince companies to relocate to their city to increase trade within its municipal or regional borders. In order to attract these companies, cities may offer lucrative tax deals to seal the relocation commitment from businesses. Never forget, businesses bring employment, employment creates income for residents, and residents spend their income with local businesses, all while taxes are collected by the government, at the local, state, and federal level. It is a win-win for the public and private sector. The relocation of businesses to a city increases the tax revenue for a city and region as a whole, while promoting to the private sector that the city or region is the market to do business in.
More Skilled Jobs Mean More Skilled Competition for Employment
Native residents may think it is a good opportunity that jobs are coming to the area. Yes, these jobs are available, but these jobs require both work skills and experience to be considered for employment. Traditionally, businesses relocate to a city and provide $40,000 to $200,000 annual salaried positions. Let’s look at some of the challenges a native resident of an emerging community may experience when applying for these market income positions.
Keep in mind that when businesses relocate, the employees of that business will more than likely relocate to the new city as well. Not every employee that relocates to that city will remain with the newly relocated business and may decide to find employment at another similar business in the new city. You now have an increase of skilled labor available to work in the city, which only brings value to the city. With growth in skilled labor in a city, businesses in complementary industries that are looking to relocate to a new city will consider a city that has a larger skilled labor force. Businesses relocate to a new city to take advantage of the tax benefits of a region as well as take advantage of the available local skilled workforce that can produce for that business.
There are times where a business may relocate to a city just to consolidate their business, and may relocate employees from several offices, that may be located in various states, to the new city the business recently relocated to.
It is wise for community leaders to study the economic plans of their city and region to best strategize on how to ensure native residents are not priced out of their homes. Creating a resident relocation plan that provides rental information on affordable housing in neighboring cities and counties can be valuable to residents. As prices for housing change, section 8 residents, renters, and seniors citizens who cannot afford the property tax increase are usually the first to relocate from an emerging neighborhood or community.
If you do not study the city and regional economic plan, then you will only get a small piece of information to deliver to yourself and your community. This good intentioned, but partial, information can quickly become misinformation and make progress more challenging with potential partners that can provide resources for your community simply because it looks like your advocacy is designed to divide than to unify.
Why is municipal and regional economic research so vital to the progression of your community?
According to www.europeangeoparks.org, regional development encourages economically disadvantaged communities to improve their economic, social, cultural and environmental well being by realizing the full potential of a region’s resources and its inhabitants. With this awareness, it is safe to say that regional development has a focus on improving disadvantaged communities to complement the full potential of the targeted region, or city. This collective focus on improvement from the public and private sectors of a region is the driver to emerging neighborhoods and communities.
For example, a region may focus on economically growing a particular city by focusing on delivering middle class to high class employment opportunities to the city. As the job market grows attracting more skilled talent, skilled talent will relocate as far as out-of-state to apply and work those available jobs. In some instances, new residents relocating to a city may be investing in themselves and their family by moving to a market (city or region) that is in need of that individual’s skill sets. Some cities and regions are experiencing dying industries causing families to relocate to new geographical territories in pursuit of sustainable employment.
More growth to a city means more restaurants and entertainment as the new tax base will want to live, work, and play in their new city, and neighborhood. The more people willing to spend consistently in a neighborhood, the faster infrastructure will be developed or renovated in the area. Every customer, who is more than likely a local resident, wants the best environmental experience to feel excited to come back to a neighborhood or community to spend their money again. The growth of jobs and entertainment indirectly demands sound infrastructure from the city or region to retain the new tax base’s consumption in neighborhood businesses.
Now, a city is growing economically due to more businesses relocating to a city. This is great news, except the neighborhood housing inventory is decreasing daily; and fast. As housing inventory in a neighborhood dries up, this is called “emerging neighborhoods.” Assuming that a city runs out of housing inventory, a neighboring city may experience a time of growth simply because there is housing inventory available close enough to a bustling city to get individuals working in the bustling city back and forth to work; even if that talent lives a city away.
What is the bottom line for residents of emerging neighborhoods?
Transformation is coming, and now residents know why. The greatest suggestion to residents residing in an emerging neighborhood is to stay positive, stay professional, identify what you are good, what you like to do, what people need, and what people are willing to pay you for. You don’t have to be great to start, but you do have to start to be great. Now get to work!
About the Author
Danavan Hylton is a business development and community relations adviser looking to improve the social well-being for diverse community residents in the areas of politics, commerce, and culture. Danavan is the founder, and CEO, of Hylton Elite Marketing Agency, a full-service sales and marketing firm delivering business development and community relations solutions to employers, workforce development organizations, business chambers, nonprofit organizations, and government agencies. www.e1connect.com