In simple terms, a primary employer is a business or industry that produces goods or services for statewide, national, or international markets. The goods and services are exported to consumers outside of the region, resulting in a stream of new dollars coming into the local economy. This influx of revenue contributes to economic development by enhancing wealth distribution to employees via their wages, strengthening a supply chain, and generating tax revenues that further support local growth.
The Importance of Primary Employers
Primary employers are key to local economies because they enhance economic stability and growth by injecting money into the region and creating substantial job opportunities with competitive wages. They also drive innovation, strengthen the local supply chain and support a network of smaller businesses and services. This all contributes to a more resilient and productive local economy.
Understanding Economic Base Theory
The idea of a primary employer is based on the Economic Base Theory, which tells us that economic growth in a region is dependent on its ability to export goods and that a region’s economy is divided into two sectors, the primary and secondary employers, or base and non-base sectors. The relationship between primary and secondary employers is one of dependence as primary employers are known to bring new wealth and jobs into a region while secondary or local establishments circulate that wealth throughout the economy.
Economic Base Theory Definition and Explanation
Economic Base Theory assumes that a region’s economic growth is driven primarily by its ability to export goods and services, which brings in income from outside the area. The theory divides the economy into two sectors: the base sector (or primary employer) and the non-base sector (or secondary employer).
The primary employer is made up of industries that produce goods for export or provide services at a national level. A few examples are Comcast, UnitedHealthcare, and Western Union, all located in the Denver South region, and they provide services to customers nationwide. In contrast, secondary employers consist of businesses that produce the goods and services that meet the needs of the local consumer market. This is why it’s so important to have restaurants, day cares, and retail establishments in a community. Economic growth is heavily dependent on the strength and expansion of the base sector, as it generates external income that fuels further development.
Economic Impact of Primary Employers
So how exactly do primary employers contribute to economic growth? They do so by creating new wealth and job opportunities, which increases consumer spending and stimulates other businesses and industries. The income generated by these jobs is distributed throughout the local economy, contributing to wealth distribution, while tax revenues help fund public services and infrastructure, further promoting economic stability and growth.
Role of Primary Employers in Local Economies
Primary employers play an extremely important role in local economies by producing goods or services that are sold outside the region. This may sound counterintuitive, but those goods sold bring in external revenue. This external income supports not only the base sector but also stimulates growth in non-base sectors by increasing local demand for goods, services, and employment making primary employers vital for overall economic stability and development in a region such as Denver South.
Case Study: Comcast
Comcast – a leading global telecommunications and technology company – is a great example of a primary employer in the Denver South region. With over 5,470 employees in the Denver South region, they help drive innovation and economic growth. The company’s investments in infrastructure, technology, and community initiatives such as increasing technology access and expanding digital skills have strengthened connectivity, supported local businesses, and enhanced opportunities for residents, making a significant impact locally and beyond.
Secondary Employers and Their Relationship with Primary Employers
Secondary employers support primary employers by providing goods and services that cater to the needs of the primary employer’s workforce and operations. These businesses, such as retail stores, restaurants, and service providers, thrive as the demand from primary employers’ employees and operations increases. This link helps create a stable economic ecosystem where primary and secondary employers contribute to the local economic health.
Secondary Employer Definition
Secondary employers serve the local community and play an important role in the local economy by providing goods and services to residents and primary employers. Secondary employers are often restaurants, retail stores, and companies that provide services such as plumbing.
The Interdependence of Primary and Secondary Employers
Primary employers support secondary employers by generating demand for local goods and services like housing, retail, and dining. This circulation triggers the multiplier effect, where each dollar spent creates additional economic activity, further boosting the overall local economy.
Strategies for Attracting and Retaining Primary Employers
Attracting and retaining primary employers is crucial to economic growth. Attracting primary employers involves strategies like offering tax incentives, developing infrastructure, and fostering a skilled workforce to create a competitive business environment. By enhancing these key areas, regions can appeal to new businesses while ensuring that existing employers remain invested in the community.
Economic Development Efforts
Along with the mentioned strategies for attracting primary employers, we work with our regional partners to help our primary employers create and retain jobs; this collective work contributes to the economic strength of Denver South.
Collaboration with Local Partners
Collaborating with local partners and working with city and county economic development teams is important for fostering a healthy business environment. These collaborations help attract new investments and create opportunities for local secondary employers. By strengthening these relationships, communities can ensure sustained economic growth and enhance the overall quality of life for residents, and we believe that the quality of life is a crucial component of Denver South’s attraction.
Building a Stronger Economy: The Impact of Primary Employers
Essential to local economies, primary employers drive economic growth by exporting goods and services, which brings new revenue into the region. This revenue supports the creation of jobs, distribution of wealth, and local tax revenues, which all help to fuel continued growth and development. The relationship between primary and secondary employers is interdependent, with primary employers stimulating local businesses and services, creating a multiplier effect that enhances overall economic stability for our local community.
FAQs About Primary Employers
How do primary employers contribute to local tax revenues?
Primary employers contribute to local tax revenues by generating income through business operations and employee wages.
Can small businesses be primary employers?
Absolutely. Small businesses can be primary employers if they export goods or services outside the local area.
What industries often have primary employers?
Industries that have primary employers include manufacturing, technology, finance, and large-scale service providers. Here are six key industry clusters that drive the Denver South economy.
How do primary employers impact the local supply chain?
Primary employers strengthen the local supply chain by sourcing materials and services from local businesses. As these employers grow, they require more materials and services, leading to increased business opportunities for local businesses, which fosters economic growth and job creation.
