EDAC Core Competencies and Economic Development Fundamentals

Comprehensive vocabulary flashcards covering EDAC's core competencies, strategic planning steps, financial ratios, and economic development activities as defined in the lecture notes.

EDAC's 7 Core Competencies

Economic Development Functions; Governance; Operations; Communications; Planning; Marketing/Sales; Finance.

Role of the Economic Developer

To foster compatible growth and retention of investment and employment through collaboration, research and ongoing support.

Economic Development (Core Concept)

A process that influences the growth and well-being of a community through job creation, job retention, an improved tax base and reasonable quality of life.

Business Attraction

Proactively identifying and pursuing compatible investment opportunities, including FDI, relocations, start-ups and other businesses that fit community needs and opportunities.

Business Retention

Supporting existing businesses so they remain viable and continue operating in the community.

Business Nurturing/Support

Policies, processes, training, mentoring and other supports that make it easier for businesses to start, operate and grow successfully.

Business Advocacy

Representing business concerns and interests so they are considered in policies and decisions.

Community Development

Improving community conditions and attractiveness for businesses and residents, even when an activity does not directly create jobs or wealth.

Sector Development

Using attraction, development and retention techniques to foster the creation and growth of a priority economic sector.

BR&E (Business Retention and Expansion)

An ongoing community-based process focused on nurturing and supporting existing businesses, identifying their issues and opportunities and acting where appropriate.

Governance

The structures, roles, responsibilities and processes through which an organization is directed and decisions are made.

Mandate

The defined authority, purpose and responsibilities assigned to an organization or body.

Terms of Reference

A document defining a committee or organization's purpose, scope, roles, responsibilities and operating expectations.

Board Renewal

Introducing new members while maintaining enough continuity and experience to avoid entrenched membership.

Ad Hoc Committees

Temporary committees created for a specific issue or task that make recommendations or implement work and then disband.

Conflict of Interest

A situation where a person's private or financial interests could conflict with their duty to act in the organization's interest.

Accountability

Being responsible for decisions, actions, resources and results.

Transparency

Conducting decisions and processes openly enough to build understanding, confidence and trust.

Integrity

Acting honestly, ethically and consistently with professional responsibilities.

Confidentiality

Protecting information that has been provided with an expectation that it will not be improperly disclosed.

Input

A resource such as money or staff time used to produce outputs and outcomes.

Activity

An action a program undertakes to achieve a particular result.

Output

The amount of products created or services delivered during a period.

Outcome

A change in knowledge, skills, attitudes, values, behaviour or condition that demonstrates progress toward program objectives.

Efficiency Measure

The relationship between the amount of input required to produce an output or outcome.

Effectiveness

The degree to which activities and results advance the organization's goals and objectives.

SMART

Specific, Measurable, Achievable, Relevant, Time-based.

Prospect

A company or individual targeted or contacted by economic development but not yet qualified as intending to invest.

Project (Qualified)

A qualified prospect actively communicating with the EDO that has established an intention to invest and is searching for a location or considering expansion.

Closure Ratio

The relationship between qualified project files and those that become successful completed investments.

Benchmarking

Comparing current performance with the organization's own previous results (historical performance) or another jurisdiction.

Facilitated Mentoring

A structured program where a coordinator matches mentors and mentees and helps establish goals, contracts and follow-up.

Group Mentoring

Multiple mentors serving as a resource for a group of mentees with similar expectations.

Multiple Mentoring

One mentee working with several mentors who provide different skills and experiences.

Networking

Developing and maintaining professional relationships that provide information, contacts, knowledge and opportunities.

Communications Plan

A planned framework that clarifies communication objectives, audiences, messages, methods, timing and coordination.

Situational Analysis

Relevant background, facts, strategic considerations, public environment, research and media context needed to inform a communication approach.

Media Relations

Managing relationships and communication with media to provide accurate and timely information and help shape informed public understanding.

Public Engagement

Processes that involve stakeholders or the public in providing input, understanding issues and contributing to decisions or planning.

Strategic Economic Plan

A document that aligns organizational structure with priorities, mission and objectives and provides a framework for future action.

EDAC's 7 Strategic Economic Planning Steps

1. Broad goals and objectives 2. SWOT 3. Identification of alternatives 4. Selection of specific objectives 5. Development and implementation of action plans 6. Contingency plan 7. Monitoring and evaluation.

SWOT

Strengths, Weaknesses, Opportunities and Threats.

Contingency Plan

An alternative course of action prepared in case the selected objective or approach cannot proceed as intended.

Community Competitive Analysis

Analysis and interpretation of extensive community information to establish the state and competitive position of the local economy.

Location Quotient (LQ)

Measures the relative concentration or specialization of an industry locally compared with a reference area.

Shift-Share Analysis

Examines changes in local industry employment relative to employment changes in a reference area using three effects: Reference Area Growth, Industrial Mix, and Differential Shift.

Industrial Mix Effect

The local employment change attributable to whether that particular industry is growing or declining in the reference area.

Differential Shift Effect

The difference between the local industry's rate of employment change and that industry's rate of change in the reference area; identifies competitive advantages.

Internal Community Marketing

Building local awareness and support for economic development, including planning and local awareness activities.

External Community Marketing

Encouraging investment, business location, expansion, retention or purchase of community services/products.

Community Profile

A comprehensive, current and defensible information resource about the community used primarily as a research tool by prospective clients.

Target Marketing

Focusing limited marketing resources on sectors and businesses that fit the community's competitive strengths, opportunities and goals.

Corporate Aftercare

A focused corporate-calling program targeting businesses already established in the community to encourage reinvestment and follow-on investment.

FDI

Foreign Direct Investment.

Hard Site Selection Factors

Quantifiable/business factors such as incentives, market access, land/buildings, labour, costs, and transportation.

Soft Site Selection Factors

Qualitative factors such as business climate, community receptivity, quality of life, and schools.

Ratio Analysis

Examining relationships between items in financial statements to evaluate financial and managerial strengths and weaknesses.

Liquidity

A company's ability to meet short-term obligations.

Current Ratio Formula

$$\frac{\text{Current Assets}}{\text{Current Liabilities}}$$

Quick Ratio Formula

$$\frac{\text{Current Assets} - \text{Inventory}}{\text{Current Liabilities}}$$

Cash Flow

The movement and availability of actual cash within a business.

Gross Profit Margin

The portion of sales remaining after the direct cost of goods/services sold.

Income Statement

A financial statement showing revenues, expenses and resulting profit or loss over a period.

Balance Sheet

A snapshot of a business's assets, liabilities and equity at a point in time.

Current Assets

Assets expected to be converted into cash or used within the short term, such as cash, receivables, and inventory.

Accounts Receivable

Amounts owed to a business by customers for goods or services already provided.

Accounts Payable

Amounts the business owes to suppliers or creditors.