... creating a great place will be key to economic competitiveness in recovery and beyond .”
economic development professionals . One reason the Main Street Approach hasn ’ t received more attention is because it has , for the most part , involved modest projects in smaller cities and towns . And many local officials think the traditional economic development approach of recruiting businesses and “ chasing elephants ” is the best .
Main Street demonstrates the power of small . Small steps , small businesses and small developments can add up to big impact . Building small is sometimes harder , more time consuming and less flashy than building the one big thing , but it is also more realistic , more cost effective and more durable than putting all your eggs into one or two baskets .
In fact , most new jobs grow out of existing businesses and are created by small businesses . In April 2020 , the Small Business Administration reported that small firms accounted for 9.3 million net new private-sector jobs from 2005-2019 , or 64 % of the total . They also say that middle market companies ( those with revenues of less than $ 1 billion ) produce 3 out of 5 jobs in high growth industries .
The Main Street approach is also about creating better places . This is important because the link between quality of place and the ability to attract and retain residents and talent is becoming increasingly clear . Mick Cornett , the four-term mayor of Oklahoma City says that “ economic development is really the result of creating places where people want to be .”
It ’ s also important to recognize that the big business subsidy approach often pits one community against another . Businesses often threaten to leave after the subsidies run out ; and if you give a big subsidy to one company , other companies will likely demand the same . Ultimately , taxpayers will end up subsidizing huge global corporations and communities will have few options if the market shifts or the company flounders .
On the other hand , the Main Street approach of working to create a great place builds lasting assets that will pay dividends long after the initial investment . This approach helps existing businesses , and taxpayers end up investing in themselves .
The Power of Historic Assets
Main Street is an asset-based approach to economic development , and oftentimes a community ’ s greatest asset is its historic building stock . Main Street leverages the value of historic buildings , ensuring that they are kept in use contributing to a community ’ s future . So , what is the value of historic buildings ? First , historic buildings physically connect us to the past . They tell us who we are and where we came from . Saving historic buildings is about saving the heart of a community .
Sentimentality aside , historic preservation is also a critical tool for revitalization . Dozens of studies have documented that preservation is good for the economy , with positive effects on jobs , property values , tourism , affordable housing and environmental sustainability .
What ’ s more , while renovation and redevelopment are not new , today ’ s market is embracing older space with new fervor . In 2016 , for example , the Urban Land Institute reported in its annual Emerging Trends in Real Estate Report that “ office space in rehabilitated industrial buildings ( like former textile mills or warehouses ) is now commanding rents above new Class A product .”
Invest in Place In today ’ s economy , considering that people can choose to live or work almost anywhere , creating a great place will be key to economic competitiveness in recovery and beyond . Next time your locality considers budgeting to spend millions to attract a global corporation , ask your leaders to consider devoting a small percentage of this amount to an economic development program with a track record of success and real return on investment . After all , for most communities , hitting an economic development homerun is a lot harder than hitting a bunch of singles that can add up to even more .
Portions of this article originally appeared in the Kansas Government Journal and the Virginia Municipal League ’ s Virginia Town & City .
Ed McMahon is Chair of the National Main Street Center Board of Directors and a Senior Fellow for Sustainable Development and Charles E . Fraser Chair for Sustainable Development and Environmental Policy at the Urban Land Institute . He is recognized nationally as a leading authority on topics such as the links between health and the built environment , sustainable development , land conservation , smart growth , and historic preservation .
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