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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Union Bible College |
Anderson University |
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Indiana Wesleyan University-Marion |
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Taylor University |
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Indiana Wesleyan University-National & Global |
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Ball State University |
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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
|
72
19
14,154
6,286
20,440
71
10
3
8
0
0
4
2
2
14,874
8
87
6
0
5,566
15
10,144
10,290
10,440
10,758
26,734
26,734
44,742
26,734
26,734
44,742
17,294
17,294
35,302
60
3,038
2,116
62
7
0
1,064
0
0
46
134
383
164
141
129
7
437
0
395
132
33
3,065 |
NA
NA
11,616
1,134
12,750
46
18
1
5
0
0
1
5
22
6,118
0
19
80
1
6,632
19
9,671
7,976
8,120
8,216
NA
NA
NA
22,992
22,992
22,992
12,800
12,800
12,800
422
971
1,323
25
18
67
250
0
0
6
56
112
16
25
24
5
31
2
55
13
1
596 |
76
36
1,872
526
2,398
80
3
4
5
0
0
3
2
4
2,372
15
84
1
0
26
14
36,535
36,570
37,476
39,104
53,492
53,492
53,492
51,846
51,846
51,846
42,604
42,604
42,604
2
422
19
0
0
0
153
0
0
4
5
34
29
21
46
3
38
0
82
10
0
425 |
82
20
2,000
207
2,207
81
5
3
5
0
0
3
3
1
2,079
7
92
1
0
128
12
28,184
28,960
29,684
31,168
45,190
45,190
45,190
42,284
42,284
42,284
38,036
38,036
38,036
14
524
12
0
15
0
249
0
0
6
56
112
15
25
24
5
30
2
55
12
0
591 |
53
10
1,033
222
1,255
72
11
1
6
0
0
6
1
2
1,095
2
91
7
0
160
10
32,100
33,640
34,080
35,640
52,590
52,590
52,590
48,640
48,640
48,640
40,340
40,340
40,340
3
242
50
5
0
0
114
0
0
2
11
33
18
8
49
4
8
1
35
0
0
283 |
87
93
88
76
164
48
2
24
24
0
0
1
0
1
164
16
62
21
1
0
14
6,380
6,230
6,230
6,230
15,700
15,700
15,700
21,552
21,552
21,552
10,810
10,810
10,810
2
3
0
0
0
0
7
0
0
1
0
0
2
1
1
0
6
1
14
0
0
33 |
Sources: STI: PopStats and STI: Colossus
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