Scholars of economic development contend that socioeconomic conditions in economically–depressed urban areas can be improved if those urban areas utilize economic development projects as a means to attract private investment in the form of new businesses. An increase in the number of businesses, representing new economic development projects in the urban areas, would increase job opportunities and enhance the quality of life of the residents. From the perspective of government officials, the enterprise zone programme can be a means by which private investment capital could be attracted into local areas which, in turn, would revitalize the local economy. In order to understand the intricacies of the enterprise zone concept, there is a need to refer to the British and Dutch experiences of two decades following the Second World War. Hong Kong's economic experience in recent times has also influenced the United Kingdom (UK) and the United States (US) as they attempt to address blighted conditions.

In order to address rapid loss of jobs in central cities, the enterprise zone concept was developed as a way to aid or reduce economic depression in many communities. The zone concept is recognized as a means to create jobs and to ease pressure on local governments to provide social services with a diminishing tax base. In light of these economic difficulties, state and local governments have attempted to try to reverse the slide of their respective economies caused by a combination of declining tax revenues and rising demands for services (Spindler and Forrester, 1993, p. 28).