Chambers of Commerce and economic development: What's the difference?

Dictionary definitions for a chamber of commerce include, "an association of business persons or merchants for the promotion of commercial interests in the community," and "an organization composed mainly of local businessmen to promote, regulate, and protect their interests."

In other words, the primary purpose of chambers of commerce is to promote local businesses in order to attract additional customers.

This role of promotion is consistent among the four chambers of commerce in our community. The Linton-Stockton Chamber touts its, "You'll like Linton" slogan and, as noted in its recent meetings, are working diligently to find new ways to promote local businesses. According to its mission statement, the Bloomfield Chamber serves as the "leading voice of business, providing advocacy, promotional and benefit solutions for its members and community." The Eastern Greene Chamber, through its Solsberry Farmer's Market, provides "an opportunity to showcase and sell its locally grown or produced goods." As Jasonville serves as the "Gateway to Shakamak," the Shakamak Area Chamber aims to capitalize on its proximity to the state park and its estimated 300,000 visitors there each year.

In contrast, the objectives of an economic development corporation are most commonly described as the creation of jobs and wealth, and the improvement of quality of life. Greene County Economic Development Corporation's mission is "to enhance the quality of life for Greene County Indiana residents by fostering an environment that will create and retain jobs, increase the tax base and promote economic growth."

Differing in their geographic and political characteristics, each community has unique challenges for economic development.

When I first came to Greene County in the spring of 2007, I was asked to review numerous community studies that had been conducted and address the recommendations. GCEDC categorized and then sought public input to prioritize those recommendations. Then, with assistance from other agencies and individuals, we formed initiatives to implement the highest priorities that had been identified, i.e. land use, entrepreneurism and tourism.

Relative to land use, Greene County now has its first comprehensive plan, providing a guiding light for future development. Plus, the Greene County Commissioners have also appointed an Advisory Plan Commission, which performs other standard duties, such as making recommendations regarding ordinances and other development regulations.

To assist those wanting to start a business, a step-by-step guide is now available on the GCEDC Web site at www.gcedc.us/business . Also, a revolving loan fund has been established to assist in funding start-ups and small business expansions.

Tourism advocates meet regularly to discuss and address key issues and this effort has now evolved into a community development initiative. Ideally, the chambers will become engaged and bring their perspective into those discussions.

With these initial efforts well under way, GCEDC is now expanding and concentrating its focus on core economic development activities. These include business retention and expansion, business attraction (working to develop appropriate sites and buildings with which to attract new prime employers), and business development (continuing to provide information on available business resources).

Economic developers typically seek to attract and nurture industry that creates primary (also called 'base') jobs, those producing something that is exported outside of the community, bringing new monies in. Income from primary jobs usually creates one or more "spin off" or "secondary" jobs (like retail and services), depending on the loyalty of the residents to the local vendors. Support for vendors is typically provided by agencies, such as local chambers, small business development and community learning centers. They may collaborate to provide training and educational opportunities for owners and their employees, along with other support services.

Thus, the major difference between chambers of commerce and economic development corporations lies in their primary focus -- for chambers of commerce it is the promotion and support of local businesses in order to increase customers; for economic development it is the attraction, retention and expansion of businesses in order to increase the tax base of the community. However, in spite of their differences, the two types of organizations have the same end goal. Both want to improve the quality of life for individuals and businesses in Greene County. It is simply through two types of complimentary efforts.

Co-authored by Joan Bethell, executive director at Greene County Economic Development Corporation, and Stephanie Fernhaber of Renewing Management, Inc./GCEDC board member. They can be reached at (812) 847-4500 or jbethell@gcedc.us .