The Importance of Civic Engagement in Economic Development
June 11, 2025 ·Business Growth and Development

While the international economy becomes increasingly complex through globalization, shifting regulations, and technological innovation, the building blocks of a successful local economy remain the same. These building blocks include collaboration, trust, and insight from acknowledging diverse perspectives.
When public participation in local government is strong, business owners, community leaders, and ordinary residents become architects of their community’s economic future.
If you want a say in shaping your local economy, this guide to civic engagement will show you why your voice matters and how to make it heard.
What Is Civic Engagement?
Civic engagement is active participation in a community’s social, economic, and political life. Through civic engagement, people can address public issues, inform policy decisions, and contribute to community well-being.
Common forms of civic engagement include:
- Voting in local elections: Participating in regional elections is an opportunity to choose leaders and influence policy decisions that impact the local economy.
- Attending town hall meetings: Community members can engage directly with local government leaders to share their ideas and concerns, as well as ask questions, at these meetings.
- Volunteering for community projects: These hands-on initiatives let community members improve their community’s quality of life by cleaning spaces, maintaining amenities, or providing social services.
- Supporting local businesses: Buying from and promoting local businesses stimulates the economy and helps to strengthen community ties.
- Participating in local government initiatives: Local government may recruit volunteers for community development projects, including urban planning, infrastructure development, and public safety initiatives.
All these forms of civic engagement offer solutions to local issues and help ensure community members enjoy the social and economic benefits.
Benefits of Civic Engagement for Economic Growth
Community involvement in economic growth fosters a more prosperous environment for all. Here are the top five ways civic responsibility drives economic impact.
Networking Opportunities
Civic engagement brings diverse people together for valuable networking opportunities. Business owners, local government officials, and other community members can exchange perspectives at town hall meetings and community events. This often leads to collaborations that drive economic growth, including new community projects, partnerships, and investments.
The Cumberland Valley Alliance, an initiative of the Cumberland Area Economic Development Corporation (CAEDC), was shaped through stakeholder engagement. Local investors, developers, and community members collaborate through this alliance to support economic vitality via advocacy, events, and small business initiatives.
Supporting Local Businesses
Community members who meet business owners through civic engagement may become loyal customers. Civic engagement can also drive support for local businesses through initiatives like:
- Shop local campaigns.
- Advocacy for business-friendly policies.
- Entrepreneur mentorship programs.
- Local product and service showcase events.
Through public feedback and participation, the Downtown Mechanicsburg Partnership hosts yearly events such as Earth Day and the Art & Wine Walk, and also supports Shop Local campaigns. These community-supported programs increased foot traffic and local revenue, preserving downtown vibrancy and helping small businesses thrive.
Building Social Capital
Social capital is the value of the network of relationships and trust that community members share, which is foundational to economic growth.
Collaborating on community projects and discussions helps residents build trust, mutual understanding, and a sense of shared responsibility for the region’s success. This creates a supportive environment where entrepreneurs can thrive through business partnerships, investment, and loyal patronage, all of which depend on social capital.
Residents of Camp Hill Borough successfully organized to preserve community identity and prevent overdevelopment through public hearings and advisory input. The result was a zoning compromise that balanced growth with neighborhood character, strengthening both community ties and economic outcomes.
Attracting Investment
Engaged communities can attract more investment from both within and outside the community. High levels of civic participation can signal a culture of growth and collaboration that appeals to investors.
Civic leadership in economic initiatives also contributes to Community Economic Development (CED), which demonstrates how the community is fostering businesses, prioritizing education, and expanding infrastructure. The benefits of civic engagement foster a stable and flourishing environment that enhances investor confidence.
Fostering Innovation
Civic engagement brings diverse viewpoints, ideas, and strengths together in a development-oriented context. This creates community events that are productive environments where creative thinkers can discover alternative perspectives on social problems and collaborate on new solutions. These could include new infrastructure projects, business ventures, or products.
Opportunities for Community Involvement in Local Decision-Making
If you want to see your community benefit from the economic impact of civic responsibility, here are three avenues for participating in local decision-making.
Public Forums
Public forums, such as town hall meetings, provide residents with a platform to express their opinions, concerns, and suggestions regarding proposed economic development initiatives.
Monitor community events in your area, as well as your city and county websites, for updates on community project proposals and scheduled meetings. Research the project in advance and attend the public forum to share your thoughts and perspectives. Some municipalities support virtual attendance of town hall meetings, making it convenient for anyone to attend.
Zoning Decisions
Zoning decisions determine the types of developments allowed in each area of your community. These decisions can majorly impact economic success, quality of life, and neighborhood character.
Most municipalities recognize distinct zones for residential, commercial, industrial, agricultural, and mixed-use areas. Local governments maintain these distinctions through zoning ordinances.
When the local government needs to make a new zoning decision or consider revising or granting an exception to an existing ordinance, the typical process involves three steps:
- A property owner, developer, business, community group, or the government itself proposes a change to the local zoning board.
- The board reviews the proposal and considers input from community residents and stakeholders.
- The zoning board recommends a decision to the relevant governing body, such as the Board of Supervisors, which votes on a final decision.
Steps one and two provide opportunities for community members to advocate for or oppose zoning decisions based on how they would impact quality of life. For example, you could contact the zoning board to oppose a proposal to build industrial facilities near your residential neighborhood or suggest an exception to help home-based businesses.
Planning Decisions
Transportation and infrastructure projects connect residents to jobs and customers to goods and services. They also provide an investment in your community. To participate in planning decisions regarding these projects, attend planning commission meetings, review proposed plans, and contact your county officials to give feedback.
You could also join an association of community members to propose a new project, like creating a new park to enhance your neighborhood and attract funding. Your county’s planning department is a good source of updates about ongoing planning decisions.
Work with Cumberland Area Economic Development Corporation to Shape the Local Economy
Civic engagement is your opportunity to steer your local economy toward the community’s best interests. However, many local entrepreneurs find municipal and county regulations difficult to navigate. Cumberland Area Economic Development Corporation (CAEDC) is a nonprofit and authorized agency dedicated to helping them:
- Understand local government regulations in Cumberland County as they start, relocate, or grow their business.
- Gain approval for land development, zoning, and building plans.
- Access government funding and incentives for their project.
- Discover public meetings and events where they can share their opinions.
Contact us today for support with your business goals in Cumberland County, Pennsylvania.