Sunday, March 15, 2009

Small Business Econometric Study / Trends From SBA

Highlights from " An Empirical Approach to Characterize Rural Small Business Growth and Profitability"

• Education was a significant explanatory variablein assessing the growth of rural small businesses.The number of high school graduates increases thenumber of rural small businesses. Moreover, one of the challenges facing rural communities is how to retain a younger, more educated population.

• The amount of “natural amenities” available in an area can impact rural small business growth. This is defined as the attractiveness of a place to live,based on factors such as climate, topography, and proximity to surface water.

• Rural areas have difficulty attracting profitable,high-tech businesses, primarily because of a lack ofboth an educated labor force and necessary infrastructure.

• Rural policy initiatives are geared primarilytoward specific topics or regions, which often proveseffective when there are sufficient resources to helprural small businesses. According to individualsinterviewed on the topic, rural development centersand non-profit organizations are vital components foreconomic development.

• Some explanatory variables were specific to particular states. These range from the number of ruralprimary care physicians per capita in North Carolinato immigration growth in Maine.

Interesting read (for wonks and mortals).

1 comment :

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