A Resource Page for Planners, Economic Developers and those who care...

Empowerment Zones

and

Enterprise Communities

 
Established in 1994 by the Clinton Administration, Empowerment Zones and Enterprise Communities (EZ/ECs) are the federal government's most recent comprehensive approach for addressing urban and rural community decline. The program focuses a combination of economic and community development strategies on specifically designated areas of the country in order to develop resources within those areas. Specifically EZ/ECs are meant to create opportunities for zone residents and businesses, increasing the number of employable and employed zone residents and the number of zone businesses. A major emphasis has been placed on empowering residents and including their ideas and voices in the process of rebuilding their communities; this is referred to as the "bottom-up" approach to community planning. 

Background & History  
The strategies being implemented under EZ/ECs are economic development strategies that have previously been used throughout the United States.  First implemented in the 1980s, these strategies are now being combined with community development strategies that focus on building human capital. 

The actual concept of spatially targeting economic development came from British planner Peter Hall. His idea was to encourage business growth in declining industrial and commercial centers in England's urban areas by providing tax incentives and reduced government regulations to businesses.  The concept was elaborated on by Stuart Butler emphasizing small business job creation. 

The United States government expressed interest in Enterprise Zones as early as the Reagan Administration.  Political posturing and distrust kept repeated bill proposals from being passed until 1987.  100 Enterprise Zones were designated but federal funding was minimal.  The result was that state governments initiated programs (up to 2000 zones were identified) but without funding, were only marginally effective.  For a list of  resources in print on Enterprise Zones   or Empowerment Zones  

The Clinton Administration recognized the potential of this zone specific economic strategy and introduced the new and improved Empowerment Zones and Enterprise Communities program go to EZ/EC Homepage . 
Tax credits to employers, and less restrictive regulations, strategies formally implemented under state Enterprise Zones have been restructured to fit the Clinton Administration's new focus on building community. In addition, matching grant funding is being utilized to maximize private investment in programs. Social Services Block Grants (SSBG) are funded by the federal government and are meant to be matched by local government and private funding.  Link to a sampling of specific strategies. 

 The program is meant to engage community members in the creation of innovative strategies and plans.  It is divided into different levels of funding and program benefits to achieve its objectives. For more information go to the program's description. 
 

 
 
 
Top of Page Background & History Program Description New Focus & Strategies Links to additional EZ/EC sites Bibliography Link to other Economic Development Strategies
 
 This website was created for Planning course 261 (Economic Development) at
the University of North Carolina, Chapel Hill.
If you have comments or suggestions, please email Pallini@email.unc.edu
Created 4/12/98 -----Last update 4/14/98