PACT economy: a concrete response to the decline of city centers
In medium-sized cities, traditional commerce is declining, services are shifting to digital, and social spaces are shrinking. Simply strengthening STEM hubs or HEAL services is not enough to reverse the trend. The PACT economy was created to fill this gap, promoting entrepreneurial activities that create well-being, relationships, and quality of life in central neighborhoods.
What does the PACT economy include?
PACT is an acronym for four economic areas that, together, activate communities and generate new urban appeal: gyms and wellness, creative crafts, commerce with a strong social dimension, third places, and entertainment. These are activities that focus on economic sustainability and community building, oriented more toward the quality of relationships than the scalability typical of startups.
Why it is strategic for territories and businesses
PACT activities increase the livability of city centers, attract local and visitor demand, and transform customers into communities. For administrations, they offer a quick tool to reactivate local spaces and services. For entrepreneurs, they open up new growth trajectories with hybrid physical-digital models and strong local roots.
Areas of intervention
To activate the PACT ecosystem, cities can act on four levers: spaces, skills, capital, and rules. Make premises available at controlled rents and for temporary use for 12-36 months, with rapid calls for tenders for third places; create a training and mentoring program for PACT operators on management, digital technology, and impact measurement; activate microfinance and revolving funds with guarantees for small investments and public-private co-investment; simplify authorizations for hybrid uses, extended hours, and land occupation for neighborhood events. These levers are accompanied by network coordination between operators (shared programming, PACT districts), tools to stimulate demand (vouchers, neighborhood cards, local procurement), and a monitoring system with quarterly KPIs on space occupancy, pedestrian flows, local sales, and social impact.
Implementing the PACT guidelines means investing in a vibrant and inclusive urban ecosystem capable of regenerating city centers, creating value for residents and businesses, attracting talent, and strengthening the competitiveness of local areas.
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Notes
The article in DiTe magazine summarizes the research and intervention activities of Upskill 4.0, a benefit corporation and spin-off of Ca' Foscari University of Venice, which has been involved for years in projects that combine business development and urban regeneration.
