In addition, existing businesses may qualify for financial incentives to assist in their expansion. It is easier to attract new business if it can be demonstrated that existing companies are successful and expanding. A business retention and expansion program shows that local government is concerned with the community's needs. In turn, the program improves the attitude of local business toward municipal government. The program's success ranges from the small, independent business to the larger manufacturing firm.
Communities now face greater challenges in retaining and expanding their existing businesses.
International competition and new technology markets increase the possibility of business relocation. Communities cannot afford to lose any jobs. Every 100 jobs lost in a community can result in an additional loss of 140 to 286 jobs in other areas of the local economy because of the loss of income. The program utilizes resources allocated by BellSouth, the Kentucky Cabinet for Economic Development through the Department of Community Development, and the University of Kentucky, yet it is a community-based effort. The Coordinator, Task Force, and interviewers are all local citizens.