14 Mar 2025 5 min read

The Potential We Overlook

Business Retention and Expansion in Community Growth

Economic development discussions often focus on attracting new businesses, large corporate relocations, foreign direct investment, and major industrial expansions. These initiatives capture headlines, bring in short-term economic boosts, and create a sense of momentum.

But the true foundation of long-term economic stability and growth isn’t just about bringing in something new, it’s about keeping what’s already there strong.

Business Retention and Expansion (BRE) is the most effective and sustainable economic development strategy, yet it’s often overlooked in favour of high-profile attraction campaigns. Supporting local businesses isn’t just about survival; it’s about creating an environment where companies can expand, hire more employees, and reinvest in the community.

1. Why Business Retention and Expansion (BRE) Matters

A strong local economy isn’t built on promises of future investment, it’s built on the strength of existing businesses today. BRE programs focus on identifying challenges local businesses face and providing direct support to help them survive and grow.

The Misconception: Attraction vs. Retention

Many communities believe that bringing in new companies will solve their economic struggles. While investment attraction is important, statistics show that 80% of all new job creation comes from existing businesses, not new ones.

When businesses already embedded in a community thrive, they:

Hire more local workers, reducing unemployment.
Spend more money within the community, strengthening local supply chains.
Invest in infrastructure, innovation, and workforce training.

Conversely, when local businesses struggle, the entire economic ecosystem weakens, leading to:

Job losses as businesses downsize or close.
Reduced tax revenues for local governments, leading to service cuts.
Fewer local suppliers and less commercial activity.

The key to economic stability is ensuring businesses have the tools to expand rather than struggle to survive.

Why BRE Works Better Than Business Attraction Alone

1. Existing Businesses Have Already Proven Their Viability

They’ve already survived local market conditions.
They have established customers, supply chains, and employees.

2. Growth From Within Creates More Sustainable Job Markets

Expansion from existing businesses leads to stable, long-term employment.
New jobs created by local businesses are more likely to stay in the community, compared to corporate relocations that may leave when incentives expire.

3. Strengthening Local Businesses Improves Investor Confidence

A thriving local business community attracts outside investors who see opportunity, rather than risk.

The reality is that business attraction should be the second step—not the first. If a community doesn’t first focus on strengthening its existing businesses, no amount of outside investment will create lasting economic success.

2. How MEDA Supports Business Retention and Expansion (BRE)

Communities need structured BRE programs to actively engage with and support local businesses. That’s where Manitou Economic Development Agency (MEDA) comes in.

MEDA acts as a direct support system for businesses in small and underserved communities, ensuring they have the tools and resources to survive, expand, and drive local economic growth.

Key Ways MEDA Supports Business Retention and Expansion

1. Business Advisory Services & Strategic Growth Planning

Many business owners struggle to expand because they lack the time, expertise, or strategic guidance to take their operations to the next level. MEDA provides:

One-on-one advisory services to identify key growth opportunities and challenges.
Customized strategic planning to help businesses scale, enter new markets, or improve operations.
Operational assessments to streamline business processes and increase profitability.

2. Access to Funding & Capital Resources

One of the biggest barriers to business expansion is access to capital. Small businesses often struggle with:

Traditional bank loan requirements that don’t align with their needs.
Lack of awareness of government funding programs and grants.
Investor hesitancy to fund smaller regional businesses.

MEDA helps by:

Navigating government grant programs and preparing applications for funding.
Connecting businesses with private investors and alternative funding sources.
Structuring financial models that make expansion projects more viable.

3. Workforce Development & Training Support

Many businesses want to expand but can’t find enough skilled workers. MEDA works to:

Facilitate workforce training programs in partnership with industry and education providers.
Develop apprenticeship and mentorship programs to bring in younger workers.
Ensure businesses receive wage subsidies and workforce development grants to lower hiring costs.

4. Infrastructure & Digital Expansion Support

A lack of infrastructure—such as high-speed internet, reliable utilities, and commercial space—often prevents small businesses from scaling.

MEDA:

Works with municipalities to improve commercial infrastructure.
Helps businesses access e-commerce platforms and digital expansion tools.
Advocates for broadband and technology upgrades in underserved areas.

5. Business Collaboration & Local Supply Chain Development

Many small businesses outsource suppliers and services to larger urban centres because they don’t realize there are local alternatives. MEDA:

Connects businesses to local suppliers, service providers, and partners.
Develops regional business networks that foster collaboration.
Supports businesses in joint ventures and cooperative growth models.

3. The Real-World Impact of Thriving Local Businesses

What happens when local businesses get the support they need to expand? The entire community benefits.

Case Study 1: Revitalizing a Local Manufacturing Business

A small-town metal fabrication company was on the verge of closing due to:

Outdated equipment.
Rising production costs.
Difficulty finding skilled workers.

With MEDA’s support, they secured:

$250,000 in grant funding for new equipment.
A workforce training partnership that brought in 15 new employees.
A new supply contract through MEDA’s regional business network.

The result? Instead of shutting down, the company doubled its workforce and expanded into new markets.

Case Study 2: Strengthening Local Retail and Tourism

A family-run outdoor adventure business struggled with seasonal revenue fluctuations and high customer acquisition costs.

MEDA helped by:

Connecting them with a regional tourism initiative to drive more visitors.
Securing funding for digital marketing and online booking systems.
Partnering them with other local businesses to offer bundled travel experiences.

The result? A 40% increase in revenue and year-round stability.

Investing in the Businesses That Already Exist

Economic development isn’t just about chasing outside investment. The real foundation of growth lies in helping the businesses already operating within a community succeed.

MEDA’s BRE strategy ensures that small businesses don’t just survive, they grow. And when local businesses grow, they:

Create more jobs.
Strengthen community identity.
Attract outside investors.
Make the entire economy more resilient.

The best way to build a strong economic future is to invest in what’s already here today. Who’s ready to grow?

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The best economic growth strategy? Strengthening the businesses already in your community. When local companies thrive, jobs grow, investment follows, and stability increases. Stop chasing what’s new, build on what works.

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