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Joined Dec 27, 2015
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5 Ways Businesses Affect Local Economies

Driving through a neighborhood, you likely notice all of the businesses, and you may even stop in at a few. However, that doesn’t mean you necessarily recognize how businesses affect local economies. Examining this issue is important because it could help you to make your own neighborhood a better place to live one day.

 

Creation of Jobs

One of the biggest ways that businesses affect local economies is by creating jobs. Bringing more businesses into an area could help the community to entirely reinvent itself. For example, if the neighborhood is experiencing issues with poverty, that could be due to a lack of employment for the residents. Once the businesses open up, residents can start to procure jobs at the businesses. When businesses place an emphasis on hiring employees from the neighborhoods in which they open, they contribute even more to this element.

 

Increased Home Values

The value of a house does have to do with its layout and space, but it also has to do with the community. When prospective buyers drive through a neighborhood and see that it doesn’t have any businesses, they may be unlikely to make an offer on houses there. People want to live near the shops that they need. Therefore, new businesses can help the prices of homes to go up. When the price of houses increases, so does the general wealth of the individuals who live in the neighborhood. The rise of businesses in communities can help a community see a higher average level of income among its residents.

 

Business Prosperity

New businesses in the area can also actually help current businesses. Some communities have spotty areas of businesses. Building up the area around those companies can help attract more attention to them. Since people are shopping at the other stores, they might finally notice or feel inclined to visit the ones that have been there for years or decades. Some business owners might have trepidation about new entities coming into the community, but they can actually end up helping them up.

 

Better Schools

It might seem striking that businesses in an area could have to do with the schools, but the connection is present. Many depressed areas of the country also face problems with the schools. The academics are poor, and the schools may have major troubles with violence or drugs. Part of the reason could be that the students are stuck in the cycle of poverty. They may have to miss school in order to work or to take care of siblings; they may not have the money to attend college. When new jobs open up in the area, they can start to take advantage of them, and they may see a brighter future ahead. These youngsters may then go on to attend college, procure high paying jobs themselves, return to their communities and transmute them into the best places to live in New Jersey.

 

Tourism

When a community gets a new business, it might become an attractive for tourists. People who are just passing through the area or on their way to vacation might stop at the business. Depending upon where the community is located, the new businesses might help it to become a major destination for tourism. For example, the neighborhood might lie at the border of one of the states, so it could turn from an area filled with poverty to one that acts as a welcome center for visitors. Tourism in a community can definitely help to stimulate the economy because people tend to spend significant amounts of money when they are on vacation.

Most people know that businesses have some sort of connection to the local economy, but they don’t think about this connection that much. Instead, they focus on how the business can serve them in the immediate future. Looking at this sole view of business is not necessarily helpful. When new businesses are proposed in the community, consider the ways that they could better the neighborhood. You might be asked to vote for the new business or to propose ways to make the businesses in the community even better. Recognize how these companies can help to change so many elements of the place where you live.

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