Social Media and Local Governments: Theory and Practice
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Scholl H. Some scholars suggest local governments engage in a large number of economic development policies — essentially, trying a little bit of everything and seeing what sticks. The top 10 policies used by local governments are reported below. The data show a wide variation between cities and counties. Recruitment policies encourage external firms to locate into the city or county. Retention policies are designed around existing businesses remaining in the jurisdiction or promoting new business growth.
The data suggest two primary factors influence the number of strategies that are used by cities and counties. Governments with more staff devoted to economic development and larger budgets tend to engage in more strategies.
This is perhaps unsurprising, since more staff and fiscal resources indicate higher levels of organizational capacity. Such findings are consistent with other work that shows the enduring importance of social capital. As previous CSBDF research has noted , there is increasing evidence that the use of social networks — particularly those that are bridging in nature — is critical for positive development outcomes.
Compared to other types of strategies that tend to target larger businesses, relatively fewer North Carolina cities and counties engage in strategies to promote small business. There are several reasons that may explain this proportionally smaller use of small business policies. Though a substantial amount of research shows that the promotion of smaller businesses can have outsized economic impacts,  policies to promote these types of firms can have long time horizons and be expensive to implement.
Smaller governments e. The data hint at this when looking at strategy use by jurisdiction population size. This pattern holds true across all types of policies surveyed that involve entrepreneurship or smaller firm development. We think such findings are interesting because they offer preliminary evidence that lower capacity governments are less likely to engage in economic development strategies that promote small business.