Economic development is a tool used by local government to build and sustain an economically viable community. This is primarily accomplished by diversification of the local business base through economic development efforts focused on business creation, attraction, retention, and expansion.
 
Having a diverse business base in El Cajon is important because it ensures that if one business sector declines, the other sectors still produce much-needed tax revenues. Local governments, such as El Cajon, use these tax revenues to provide public safety services, parks, roadways, recreation programs, and other public goods and services that are essential for a high quality of life.
 
Through El Cajon's economic development efforts, the City has created a dynamic business environment while retaining its community values and charm.