A common misperception is that economic development is someone else’s problem or that it occurs naturally. Communities that are successful in economic development, however, have invariably organized themselves and their resources to address the concerns of economic development and community change. In this section, we will review alternative processes that successful communities pursue in organizing for economic development. This includes 1) individual organizations that assume responsibility for economic development and 2) strategies for these organizations to do work jointly to pursue their common economic aspirations.

Before organizational aspects of community groups are addressed, a discussion of the contextual aspects of economic development is needed.

First, communities are decision-making and implementing units. This means that the end result of any action will lead to some type of change.

Second, communities have multiple interests and objectives that are often perceived to be in conflict. Through the larger planning process, the active engagement of interested parties (institutions, stakeholder groups) oftentimes reduces perceived conflict between competing community goals. These interested parties are often organized according to single-dimensional issues. For example, chambers of commerce are interested in enhancing the profitability of local businesses while the local hunting and fishing club may be more interested in conserving natural resources and managing wildlife habitats. In many smaller communities, membership between the two groups may overlap. Yet, the two separate institutions seldom work together formally.

Third, the larger planning process needs to be inclusive of alternative perspectives and seek to involve the wide range of socioeconomic groups present in a community. The reason for this is the simple fact that at the plan implementation stage, excluded groups can often derail the action called for in the plan.

Successful development planning requires a holistic approach to issues identification and problem solving. The problem with single-dimensional institutions and their sole approach to the development process is their failure to examine all aspects of the community. This means that, for example, the chamber, the industrial development group, the fishing and hunting groups, and environmental groups need to appreciate multiple perspectives on community issues.

While creating jobs and income are often the driving forces behind economic development initiatives, the implications of the development process are broader and more far-reaching. For example, successful expansion of existing businesses often creates increased demands for housing that alters the land use patterns in the community. Agricultural land on the outskirts of communities can be diverted into residential uses as land within communities becomes scarce and the need for housing increases. This creates questions about the expansion of community services such as sewer, water, and schools. For this reason, it’s important to have a broad, diverse group of organizations involved in the planning process.