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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WellSpring School of Allied Health-Springfield |
Bolivar Technical College |
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Bryan University |
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Evangel University-College of Online Learning |
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Mission University |
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Drury University-College of Continuing Professional Studies |
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Cox College |
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Drury University |
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Southwest Baptist University |
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Evangel University |
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Ozarks Technical Community College |
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Missouri State University-Springfield |
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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
|
91
26
13,487
9,931
23,418
77
3
2
5
0
0
4
3
5
19,259
27
64
9
0
4,159
21
7,938
8,294
8,604
9,024
25,048
25,048
33,952
26,358
26,358
35,262
16,634
16,634
25,538
0
3,093
1,443
1
141
0
822
3
0
27
166
108
171
138
233
44
217
12
273
75
9
2,298 |
NA
NA
4,804
6,232
11,036
80
3
2
7
0
1
6
2
0
11,036
22
54
24
0
0
16
3,796
3,796
4,040
4,184
NA
NA
NA
17,652
19,092
20,340
8,635
10,075
11,323
1,475
0
0
0
0
0
402
0
0
4
159
124
21
46
27
1
97
19
55
1
4
960 |
69
41
1,591
566
2,157
74
5
2
8
0
1
4
3
3
1,427
15
84
2
0
730
12
25,037
25,748
26,400
27,192
40,920
40,920
40,920
39,008
39,008
39,008
31,744
31,744
31,744
4
313
144
18
6
0
153
0
0
6
19
17
5
8
50
1
39
0
58
15
0
371 |
100
26
1,503
652
2,155
74
5
1
3
0
1
3
12
2
1,622
17
66
17
0
533
10
25,508
26,128
27,038
28,320
40,772
40,772
40,772
39,704
39,704
39,704
31,820
31,820
31,820
136
293
96
13
71
0
168
0
0
3
5
44
10
1
34
6
28
0
23
3
0
325 |
59
22
1,390
206
1,596
74
3
2
3
0
1
4
5
8
1,368
0
96
3
0
228
13
31,215
32,430
33,830
35,235
50,621
50,621
50,621
50,621
50,621
50,621
40,135
40,135
40,135
0
265
93
0
0
0
138
0
0
0
31
22
19
12
56
7
39
0
22
11
0
357 |
71
60
404
391
795
82
2
1
5
0
1
4
4
0
637
0
55
45
0
158
8
12,600
12,600
13,910
15,599
NA
NA
NA
32,627
32,627
32,627
18,771
18,771
18,771
113
142
60
0
0
0
66
0
0
0
4
3
7
3
19
0
0
0
0
0
0
102 |
NA
NA
441
275
716
69
6
2
12
0
1
3
6
1
716
0
35
65
0
0
17
7,924
7,924
7,924
8,044
22,476
22,476
22,476
24,374
24,374
24,374
12,244
12,244
12,244
67
145
0
0
0
0
33
0
0
0
13
5
0
0
0
0
1
0
4
0
0
56 |
NA
NA
307
70
377
81
7
1
6
0
3
3
0
0
342
0
80
19
1
35
12
14,890
14,890
15,690
16,230
30,090
30,090
30,090
28,430
28,430
28,430
25,830
25,830
25,830
11
44
21
0
0
0
29
0
0
2
0
15
0
0
5
0
9
0
5
0
0
65 |
45
56
117
124
241
78
4
3
12
0
2
0
1
0
241
0
34
66
0
0
8
7,296
8,025
8,025
8,025
NA
NA
NA
26,454
26,454
26,454
14,609
14,609
14,609
8
86
0
0
0
0
25
0
0
6
0
1
0
0
0
0
0
0
1
0
0
33 |
NA
NA
159
0
159
49
33
1
6
1
1
6
3
0
150
0
13
87
0
9
15
15,782
15,782
15,782
15,868
NA
NA
NA
26,626
26,626
26,626
20,452
20,452
20,452
22
14
4
0
0
0
6
0
0
0
6
5
1
0
0
0
0
0
0
0
0
18 |
82
100
53
91
144
88
3
1
5
0
1
3
0
0
144
0
32
68
0
0
4
18,360
20,260
24,610
27,125
NA
NA
NA
57,061
57,061
57,061
39,599
39,599
39,599
30
6
0
0
0
0
19
0
0
0
7
2
1
0
1
0
0
0
0
0
0
30 |
NA
NA
79
0
79
82
1
0
6
1
0
8
1
0
79
0
33
67
0
0
10
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
4
NA
NA
NA
NA
NA
9
0
0
0
1
1
1
0
0
0
0
1
0
0
0
13 |
Sources: STI: PopStats and STI: Colossus
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