Economic Study Shows Success of IncentivesPosted: Updated:
The Grant County Economic Growth Council says a study on economic development incentives to new and existing businesses shows a high success rate. The study shows more than 80 percent of companies receiving incentives between 2004-2014 remain in business, with tax abatements showing the lowest failure rate.
Marion, Ind. -- The Grant County Economic Growth Council recently reviewed economic development incentives provided to new and existing firms in Grant County. In an effort to evaluate the success or failure, strengths or weaknesses, of the types of incentives given, a review of the known population of firms receiving some kind of incentive from 2004-2014 was undertaken by the Grant County Economic Growth Council's Strategy and Evaluation Committee under the direction of Dr. Tom Lehman. Efforts were made to identify the status of the firm at the time of the incentive, the type of incentive(s) provided to the firm, and the status of the firm as either an ongoing enterprise or a closed/non-operational enterprise at the time of this review, conducted in October of 2014.
"The Growth Council recognizes that economic development is not only vital to a thriving community, but is also always changing. By evaluating economic development incentives given to local businesses over the past decade, and the success or failures of those receiving firms, the Growth Council board can strategically move forward, armed with information that guides our decisions to be as effective as possible for the greater good of Grant County," said Joe Certain, President of the Grant County Economic Growth Council board.
Key findings of the incentive review, covering a time period of ten years, include: the large majority of firms receiving incentives (83%) remain in operation during the 2004-2014 ten-year time period; of the types of economic development incentives given, tax abatement exhibits the lowest failure rate (11%, 3 of 28 firms); and, while providing providing new firms with economic incentives may create slightly higher risk exposure, the Growth Council experienced a track record of success during this period, with 23 out of 31 new firms still operational at the end of the study period.
The Growth Council is a leader for original research and has recently released Midwest Community Study II : Correlates of Nonmetropolitan County Income in the Midwest and Great Lakes Region, a follow-up comprehensive study and analysis to a 2007 original study. The mission of the Grant County Economic Growth Council is to facilitate investment and reinvestment for job retention and creation. With core values resting on the pillars of collaboration, innovation, and reputation, the Growth Council takes strides to be the champions of collaboration and opportunity, leading the charge to make Grant County one of the best places to live, learn, work, and retire in Indiana.
Source: Grant County Economic Growth Council