Non-profit organizations known as anchor institutions
Non-profit organizations known as anchor institutions rarely relocate once they are founded. The growth of the local economy and the generation of new job opportunities depend on anchor institutions. They make a significant contribution to the growth of wealth in the nearby towns. Universities and non-profit healthcare facilities are the most significant anchor institutions. Hospitals and universities make significant contributions to the expansion of the regional and broader economy. They have ongoing relationships with the local communities, which benefits them in the long run (David). Additionally, they get a lot of funding from the government. Communities may profit from this money if it is used appropriately. Hospitals, for instance, provide community health services and assistance in the moments of disaster. Apart from hospitals and universities, there are also other anchor institutions like military bases, museums, local sports teams, public libraries and museums. All anchor institutions share some key characteristics. These characteristics include:
Spatial immobility
Spatial immobility means that anchor institutions are permanently located in the communities in which they operate. They have established and strong link with the local areas. The strong ties with the local communities are founded on relationship to customers and employees and invested capital. Compared to corporations which can change base depending on the prevailing conditions, anchor institutions rarely change location.
Size
Anchor institutions are normally very huge. They employ a lot of people from the local area and beyond. They also have a huge purchasing power. Anchor institutions seek most their good and services from the local vendors who are based in the communities. The huge size of these institutions makes them influential in directing the growth of the local economy.
Non-profit
The major purpose of anchor institution is to provide services to the communities and not to generate revenue. They get funding from the government and well-wishers. However, there are a few for-profit agencies that act as anchor institutions.
The world and national economy have changed immensely
The world and national economy have changed immensely over the past few decades. Before the change of the economy, most of the economic growth was fueled by multinational companies like Ford, IBM and General Motors. Communities measured their success by the number of manufacturing plants they hosted. However, globalization affected most of the companies. The manufacturing sector that was once a major booster of the national economy has shrunk by a huge margin. Economic growth is now reliant on small companies and individual talent. The development skills and talent come from out anchor institutions like universities and medical centers through research scientific research (David). These institutions contribute to innovation by attracting talent from across the world. Intellectual and human capitals are fundamental to the competitiveness of the local economies. Universities and medical center promote an entrepreneurial culture and the emergence of startups in the local areas. They are a great source of knowledge and skills that the local community can utilize in development (Ehlenz).
Anchor institutions like banks can also provide low-interest loans to people. People can use the money to start business ventures in their localities. Religious institutions can also raise funds from well-wishers for community development projects like hospitals.
There is growing importance of anchor institutions in the promotion of local economic growth. The effect of many of these institutions can be felt in many communities and has surpassed the influence of other sectors like manufacturing. If the economic influence of these institutions is fully utilized, they contribute more to the building of local communities.
Works Cited
David, Maurrasse. Anchor Institutions and their Significance to Community and Economic Development. State of the Planet Earth Institute. (2014). Retrieved Dec. 14, 2017, from http://blogs.ei.columbia.edu/2016/03/08/anchor-institutions-and-their-significance-to- community-and-economic-development/
Ehlenz, Meagan M. “Neighborhood Revitalization and the Anchor Institution: Assessing the Impact of the University of Pennsylvania’s West Philadelphia Initiatives on University City.” Urban Affairs Review 52.5. (2016).
