DEFINITION of 'Enterprise Zone'

A specific geographical area that has been designated by a governmental authority (usually federal). Businesses within the enterprise zone are entitled to receive various types of financial aid. These include tax benefits, special financing and other incentives designed to encourage businesses to establish and maintain a presence within the specified zone.

BREAKING DOWN 'Enterprise Zone'

Enterprise zones are often established in low-income areas or places that are recovering from disaster, such as a flood or hurricane. Business are encouraged, through cost savings, to open their doors and hire local residents within these areas in order to stimulate economic growth.

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