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.
|
Central Christian College of the Bible |
Stephens College |
|
Central Methodist University-College of Liberal Arts and Sciences |
|
Central Methodist University-College of Graduate and Extended Studies |
|
Moberly Area Community College |
|
Columbia College |
|
University of Missouri-Columbia |
|
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
|
77
31
26,395
4,618
31,013
76
5
3
5
0
0
4
1
5
23,613
0
96
3
0
7,400
17
10,723
11,475
11,981
14,130
32,272
32,272
52,480
32,272
32,272
52,480
18,858
18,858
39,066
0
5,944
1,598
321
437
0
2,322
109
238
51
296
647
812
1,472
756
681
510
34
1,162
268
105
9,463 |
NA
NA
2,468
3,578
6,046
53
21
2
11
1
0
6
2
4
5,633
1
34
65
0
413
20
24,320
23,840
24,326
24,326
38,928
38,928
38,928
38,960
38,960
38,960
30,054
30,054
30,054
546
1,095
182
0
0
0
175
0
0
3
23
141
28
40
122
4
19
0
49
8
0
612 |
NA
NA
2,091
2,906
4,997
77
8
2
6
0
0
4
2
0
4,997
34
53
13
0
0
24
3,510
3,840
3,900
4,020
13,896
16,416
18,246
16,654
19,174
21,004
11,110
13,630
15,460
773
NA
NA
NA
NA
NA
121
0
0
2
44
29
11
13
25
0
29
1
46
5
0
326 |
87
89
1,102
2,499
3,601
82
8
1
3
0
1
2
3
0
3,247
34
26
41
0
354
17
6,720
6,720
6,960
6,960
NA
NA
NA
22,310
22,310
22,310
14,170
14,170
14,170
7
481
101
0
0
0
69
0
0
0
9
3
3
0
13
0
0
0
7
0
0
104 |
88
23
1,012
5
1,017
64
12
1
8
0
0
5
2
8
1,017
0
97
3
0
0
11
26,470
26,470
27,140
27,140
44,400
44,400
44,400
43,630
43,630
43,630
35,490
35,490
35,490
12
238
0
0
0
0
90
0
0
4
6
17
9
10
53
6
26
1
26
5
1
254 |
92
20
484
48
532
62
9
2
1
0
1
7
18
1
354
0
89
11
0
178
7
23,385
24,570
25,586
28,200
47,133
47,133
47,133
47,359
47,359
47,359
34,035
34,035
34,035
0
95
57
0
0
0
62
0
0
4
27
18
12
5
8
0
26
0
9
5
0
176 |
NA
NA
130
53
183
70
11
2
5
0
0
2
9
0
155
3
66
32
0
28
10
9,250
9,250
9,850
11,200
24,805
24,805
24,805
37,645
37,645
37,645
24,069
24,069
24,069
3
33
15
0
0
0
13
0
0
4
4
9
3
3
10
0
4
1
8
0
0
59 |
Sources: STI: PopStats and STI: Colossus
|