The public-private partnership model of economic development is a popular approach that allows for a healthy cross-section of individuals to come together as a unified front to promote a particular area.
It’s a concept that members of the Henderson Vance Economic Development Commission wanted to learn more about, and HVEDC Director Ferdinand Rouse delivered at the group’s February meeting.
A driving force behind economic development is the desire to bring dollars and jobs to a community. Having a public-private partnership has numerous advantages, which Rouse reviewed with the HVEDC members.
Such a partnership, described as an implementation organization, usually is formed as a nonprofit organization that gets funding from both the private and public sectors.
According to research Rouse shared, one advantage of this model is that it is less susceptible to political changes. Other advantages include having access to greater capital investment, the ability to make decisions more quickly, maintaining operational flexibility while having access to governmental powers and resources and enhanced connections to businesses and potential prospects through private sector members
Potential downsides could include concerns about transparency, less direct governmental influence and the lack of strong relationships with public bodies to enact policy effectively.
After Rouse’s presentation, the board discussed potential structural changes to align with the public-private partnership model.
Rouse said they’d have to present the idea to the county commissioners and city council and then do some type of feasibility study to determine what the best approach likely would be.
Some communities, especially smaller communities, have merged with an existing organization like the Chamber of Commerce instead of forming its own nonprofit.
Nonprofit organizations can apply for grant funding from foundations like the Cannon Foundation, Golden Leaf Foundation, the John Hope Foundation and Duke Energy, among others, to help create the model they’re striving for.
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