The value of nurturing and supporting existing businesses should not be underestimated because local businesses create the greatest economic impact, by far. Business Retention and Expansion (or BRE) programs are a strategic approach that focuses on enhancing the growth and sustainability of local businesses.

Understanding Business Retention and Expansion

Business Retention and Expansion programs are designed to foster a supportive environment for existing businesses to flourish. Unlike traditional attraction efforts that seek to lure external investors, BRE initiatives aim to retain and help local enterprises expand. This approach acknowledges the economic contributions of established businesses, often referred to as the “economic base,” and recognizes the potential of these enterprises to create jobs, generate tax revenue, and drive innovation.

The Value of Business Retention and Expansion

BRE programs create high value for economic development in the following ways:

1. Job Creation and Economic Stability: Maintaining a healthy business ecosystem directly correlates with job retention and creation. Established businesses are more likely to be stable, contributing to the long-term employment opportunities in the community. By aiding these businesses, economic development agencies can prevent layoffs, enhance job quality, and ensure a steady income stream for local residents.
2. Diversification and Resilience: A robust BRE strategy helps diversify the local economy by strengthening various industry sectors. When a community relies solely on attracting new businesses, it becomes vulnerable to economic fluctuations. In contrast, nurturing existing businesses promotes a diverse economic landscape that can better weather economic downturns.
3. Cost-Effectiveness: Attracting new businesses often involves substantial incentives and resources, which can be controversial. On the other hand, BRE programs can be more cost-effective since they focus on providing support to businesses that are already established in the area. This approach can maximize the impact of limited resources and create a positive return on investment.
4. Innovation and Growth: Existing businesses are not stagnant entities; they can innovate, expand, and introduce new products or services. BRE initiatives can facilitate innovation by connecting local businesses with resources, research institutions, and networking opportunities. This, in turn, fuels economic growth and helps a region remain competitive.
5. Community Connection: Businesses that have deep roots in a community tend to be more invested in its well-being. They often engage in community-oriented initiatives, support local events, and contribute to charitable causes. Strong business-community relationships foster a sense of pride and belonging among residents.

Implementing Effective BRE Programs

To create successful BRE programs, economic development organizations should consider the following steps:

1. Data Collection and Analysis: Gather data about local businesses to identify their needs, challenges, and growth potential. This data-driven approach helps tailor support services effectively.
2. Relationship Building: Establish open lines of communication with business owners to understand their concerns and aspirations. Regular interactions can help build trust and provide insights for program improvement.
3. Access to Resources: Offer a range of resources such as training, technical assistance, financing options, and networking opportunities to support businesses at different stages of growth. This can include individual consulting, in-person training on specific subjects, and in-person meet-ups. However, (1) businesspeople are often too busy during the workday, and (2) it’s impossible for busy economic developers to personally meet and assist all the businesses in their community. An effective solution to solve these problems is to scale and automate BRE assistance. This can be accomplished by providing digital resources on your website to help entrepreneurs plan, start, manage, and grow their businesses utilizing software such as SizeUp. 
4. Collaboration: Local chambers of commerce, industry associations, educational institutions, and government agencies should collaborate to create a comprehensive support network.
5. Continuous Evaluation: Regularly assess the impact of BRE programs to identify areas for improvement and measure the success of the initiatives in terms of job retention, business growth, and community development.

Conclusion

Business Retention and Expansion programs form a crucial pillar of economic development efforts. While attracting new businesses remains an important strategy, nurturing the growth of existing businesses is essential and delivers an even greater economic impact. These initiatives not only contribute to job creation and economic stability but also foster innovation, diversification, and community cohesion. By recognizing the value of established businesses and implementing effective BRE strategies, communities can create resilient and prosperous economies that benefit all stakeholders involved.