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Urban Renewal Traditionally revitalizing distressed inner city communities have been defined in social terms, with social programs addressing the situation. Most attempts to grow economic development have been based on subsidies and on distorting or blunting market forces. In order to create a healthy and sustainable inner city community, however, it becomes necessary to create healthy economies in and around the community itself. Economic development in inner cities must be approached from competitiveness perspective, and be based on business opportunities in the inner city that are genuinely profitable. There are existing and potential competitive advantages of inner cities that can support viable businesses and jobs. The inner city can only prosper if it is integrated into the regional and national economy. The local business and local governments both must play the a combined role in inner-city development, motivated by self-interest instead of charity. Inner city distress is as much an economic as a social problem. Small Business Development Every community can benefit from the success of local small businesses. In the United States, most people in the private sector are employed by a small business. Historically, small businesses have generated between 60% and 80% of all new jobs, according to the Small Business Administration. Usually, a small business will employ five to ten people. Adding several small businesses to a local community can employ the same amount of workers as one large local corporation. Therefore, it is beneficial to local communities and governments to ensure the success and growth of local business. The local government should encourage community collaboration among government agencies and private not-for-profit service providers in the community.
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