Universities play a crucial role in shaping local economies by driving employment, fostering business growth, attracting investment, and enhancing the overall quality of life in their host communities. Their economic impact extends beyond direct spending to include long-term benefits such as workforce development, innovation, and cultural enrichment. Below, we explore the key ways in which a university influences a local economy.
- Direct Employment and Spending
A university is often one of the largest employers in a local area, providing jobs for faculty, administrative staff, maintenance workers, and other professionals. These employees spend their salaries on housing, groceries, transportation, and entertainment, injecting money into the local economy. Additionally, universities spend significant amounts on construction, utilities, and local services, further stimulating business activity.
Students also contribute to local spending. Many bring outside money into the community through tuition payments, federal aid, and personal expenditures on rent, food, and retail. A large student population can sustain businesses such as bookstores, coffee shops, restaurants, and housing providers.
- Business Development and Entrepreneurship
Universities often serve as hubs for innovation and entrepreneurship. Research institutions, business incubators, and technology transfer offices help commercialize academic research, leading to startup formation and industry partnerships. For example, Stanford University's role in Silicon Valley's growth demonstrates how academic institutions can spur regional economic development.
Local businesses benefit from university partnerships, including procurement contracts for supplies, catering, and maintenance services. Furthermore, universities attract conferences, sporting events, and cultural activities that generate tourism revenue for hotels, restaurants, and transportation services.
- Human Capital and Workforce Development
A well-educated workforce is essential for economic competitiveness. Universities produce graduates with specialized skills that attract high-paying industries, such as technology, healthcare, and finance. Many graduates remain in the area, filling critical roles in local businesses and government.
Universities also offer continuing education programs, professional certifications, and workforce training initiatives that help upskill local employees, making the regional labor market more adaptable to industry changes.
- Real Estate and Infrastructure Growth
The presence of a university can drive demand for housing, both from students and faculty. This often leads to the development of new apartments, condominiums, and mixed-use commercial spaces. Over time, universities contribute to urban revitalization by investing in campus expansions, public transit improvements, and community amenities like libraries and parks.
However, rapid growth can also lead to challenges, such as rising housing costs and gentrification, which may displace long-term residents. Local governments must balance economic expansion with policies that ensure affordable housing and equitable development.
- Cultural and Social Contributions
Beyond economics, universities enrich local culture through arts programs, public lectures, and athletic events. These activities improve residents' quality of life, making the area more attractive to businesses and skilled workers. A vibrant university town often sees increased property values and a more diverse, engaged community.
Conclusion
The economic impact of a university on a local economy is multifaceted, encompassing job creation, business growth, talent development, and infrastructure investment. While challenges such as affordability and displacement must be managed, the long-term benefits-including innovation, increased tax revenues, and a more dynamic workforce-make universities vital engines of regional prosperity. By fostering collaboration between academia, government, and industry, communities can maximize these advantages while ensuring inclusive growth.
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Jackson Theological Seminary |
Champion Christian College |
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Shorter College |
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Arkansas Baptist College |
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Strayer University-Arkansas |
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Philander Smith University |
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Arkansas State University Three Rivers |
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National Park College |
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University of Arkansas for Medical Sciences |
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University of Arkansas Grantham |
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University of Arkansas-Pulaski Technical College |
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University of Arkansas at Little Rock |
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Percent admitted - total Admissions yield - total
Full-time enrollment Part-time enrollment
Total enrollment % White % Black % Asian % Hispanic % Native Hawaiian or Other Pacific Islander % American Indian or Alaska Native % two or more races % Race/ethnicity unknown % U.S. Nonresident
Undergraduate enrollment % under 18 % 18-24 % 25-64 % over 65
Graduate enrollment
Student-to-faculty ratio
Tuition and fees, 2020-21 2021-22 2022-23 2023-24
Total price for In-district students living on campus 2023-24 In-state students living on campus 2023-24 Out-of-state students living on campus 2023-24
In-district students living off campus (no family) 2023-24 In-state students living off campus (no family) 2023-24 Out-of-state students living off campus (no family) 2023-24
In-district students living off campus (w/ family) 2023-24 In-state students living off campus (w/ family) 2023-24 Out-of-state students living off campus (w/ family) 2023-24
Associate's degree Bachelor's degree Master's degree Doctor's degree - research/scholarship Doctor's degree - professional practice Doctor's degree - other
Instructional FTE Research FTE Public Service FTE Librarians, Curators, and Archivists FTE Student/Academic Affairs and Other Education Services FTE Management FTE Business and Financial Operations FTE Computer, Engineering, and Science FTE Community Service, Legal, Arts, and Media FTE Healthcare FTE Service FTE Sales and Related FTE Office and Administrative Support FTE Natural Resources, Construction, and Maintenance FTE Production, Transportation, and Material Moving FTE Total FTE staff
|
58
23
4,122
4,036
8,158
53
21
2
3
0
1
10
2
8
5,789
14
51
33
1
2,369
11
8,366
8,366
8,366
8,455
25,856
25,856
36,611
31,175
31,175
41,930
16,073
16,073
26,828
360
1,014
434
39
126
0
405
0
0
11
53
171
39
172
35
1
46
0
69
26
2
1,030 |
NA
NA
2,168
2,007
4,175
37
40
2
13
0
0
4
3
1
4,175
5
54
40
1
0
16
5,670
5,820
4,848
4,848
NA
NA
NA
26,525
26,525
28,925
15,610
15,610
18,010
642
NA
NA
NA
NA
NA
169
0
0
7
12
59
19
6
20
0
23
0
40
7
0
362 |
NA
NA
1,419
2,323
3,742
43
32
1
8
0
1
3
9
1
3,203
0
5
94
1
539
20
8,280
8,280
8,280
8,280
NA
NA
NA
15,692
15,692
15,692
8,780
8,780
8,780
262
555
339
0
0
0
8
0
0
0
4
7
2
0
0
0
0
0
0
0
0
21 |
NA
NA
2,282
993
3,275
63
10
9
7
0
0
4
3
3
1,380
0
26
74
0
1,895
15
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
516
195
17
293
0
292
146
12
1
1,058
957
401
627
244
117
453
62
275
83
2
4,730 |
NA
NA
1,213
1,095
2,308
82
9
1
6
0
1
0
0
0
2,308
27
52
21
0
0
14
4,550
4,550
5,200
5,600
17,200
17,650
18,880
25,782
26,232
27,462
10,475
10,925
12,155
272
NA
NA
NA
NA
NA
100
0
0
2
0
29
21
18
38
0
14
2
11
4
0
239 |
NA
NA
436
1,592
2,028
69
14
1
11
1
3
1
0
0
2,028
69
19
11
0
0
13
3,264
3,458
3,356
3,568
NA
NA
NA
20,054
20,054
20,654
10,130
10,130
10,730
84
NA
NA
NA
NA
NA
71
0
0
2
0
24
6
7
4
0
3
1
26
1
0
145 |
NA
NA
687
179
866
4
80
0
3
2
0
1
2
8
848
1
76
23
0
18
12
13,014
13,014
13,014
13,014
28,526
28,526
28,526
34,368
34,368
34,368
19,992
19,992
19,992
0
138
0
0
0
0
61
1
0
4
35
8
13
0
13
3
0
0
9
9
0
156 |
NA
NA
9
474
483
37
55
0
3
0
1
3
2
0
456
0
15
85
0
27
39
13,515
13,515
13,515
13,920
NA
NA
NA
25,158
25,158
25,158
15,720
15,720
15,720
5
19
18
0
0
0
3
0
0
0
3
3
1
0
0
0
0
2
0
0
0
12 |
NA
NA
326
47
373
1
91
0
5
0
0
2
1
1
373
0
80
20
0
0
15
8,760
8,760
8,760
8,760
23,060
23,060
23,060
22,014
22,014
22,014
14,234
14,234
14,234
8
16
0
0
0
0
23
0
0
1
16
12
3
1
14
0
29
0
12
1
0
112 |
NA
NA
252
38
290
19
76
0
3
0
2
0
0
0
290
0
26
74
0
0
13
5,596
5,596
6,196
6,246
23,219
23,219
23,219
23,219
23,219
23,219
10,604
10,604
10,604
56
NA
NA
NA
NA
NA
29
1
0
2
6
21
2
1
3
0
9
0
7
1
0
82 |
NA
NA
119
20
139
60
20
1
5
0
4
7
1
1
139
5
86
9
0
0
5
10,114
10,114
11,130
10,870
20,970
20,970
20,970
25,434
25,434
25,434
14,970
14,970
14,970
1
13
0
0
0
0
7
0
0
0
0
9
0
0
4
0
3
0
2
0
0
25 |
NA
NA
3
6
9
0
100
0
0
0
0
0
0
0
1
0
0
100
0
8
1
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
0
1
0
0
0
2
0
0
0
0
0
0
0
0
0
0
0
2
0
0
4 |
Sources: STI: PopStats and STI: Colossus
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