THE NEW FUTURE BUSINESS 1

The New Future Business:

Redefining Economic Growth in Small Towns and Rural Areas

Aric Easterling

Major Project #2

Stratford University

BUS 801: Qualitative Research and Academic Writing

March 5, 2017
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Abstract

The future of business in small towns and rural areas is heavily dependent upon the ability of the

local economy to revitalize itself. Leveraging partnerships with industrial and agriculture

companies could offer a possible solution to economic growth in small towns and rural areas;

however, it is important that small towns and rural areas also leverage technology to diversify

their economic growth strategies to sustain their local economy. To expand economically, small

towns and rural areas will need to develop community leadership that is progressive,

cooperative, and committed to the technological growth of the community. Community leaders

will need to identify successful methods for strategic planning based on the needs of the

community to establish an acceptable plan for economic growth and business partnerships for

future business opportunities.

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Problem Statement

Community leaders in rural areas and small towns depend heavily on attracting

large manufacturing companies to generate jobs for their local economy. In South

Carolina, successes in attracting large global organizations such as BMW, General

Electric and Boeing have contributed to the economic growth of the local economy.

Many other small towns and rural areas across the U.S. and abroad are confident that they

too will succeed at attracting big business. The key is to develop the right blend and mix

of opportunity and financial incentives to attract big business needed to help sustain the

local economy.

Unfortunately, the exclusive dependency of small towns and rural areas upon

industrial business opportunities is that many communities often underestimate the

potential impact resulting from loss of business or have not completely assessed the

importance of business diversification to support the future state of business that will be

required to sustain their local economy. Anchored by community banks, small businesses

and entrepreneurs, small towns and rural areas depend on traffic from tourism and talent

investments from educational institutions to sustain the local economy. Contrary to

popular belief, many of these places are growing. Between Census Day (April 1, 2010)

and July 1, 2014, the populations of small places grew by 293,000 (1 percent), with a

corresponding growth in their housing stock of 1 percent as well (Gibbs and Johnson,

2015).
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As result, community leaders often overlook practical community infrastructure

requirements to capture business development opportunities without giving sufficient

attention to improving the quality of life in the local community. Fortunately,

neighborhood leaders in small towns and rural areas have worked together with

community leaders to determine strategies for growth by collaborating with neighboring

high performing cities and metropolitan areas. By doing so, community leaders have

been able to better understand that advancements in technology and social change

required to provide a proactive business posture to address current and future needs of

their communities.

Research Purpose

You should not leave rural areas and small towns out of the new global economy,

placemaking and community development success (Schindler, 2014). History has proved

that over time small towns and rural areas undergo a series of changes that impact local

businesses. Unfortunately, these businesses often serve as the primary resources for their

local economies and the impacts are devastating. On the other-hand, there are few small

towns and rural areas that have been able to successfully respond to fluctuations in the

financial market and diversify their economic resources as needed. However, smaller

towns with limited resources and rural communities with smaller populations have a

higher level of difficulty in adapting to financial market conditions.

These communities often depend on one industry such as agriculture, farming, or

textiles and do not have the resources readily available to address the economic and

social challenges placed upon their residents. Thus, job opportunities located within many

small towns and rural areas have been significantly reduced; forcing residents to
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commute to neighboring towns and cities for employment opportunities. This results in

residents following job opportunities and relocating their families; which further

decreases potential tax dollars and strains community resources.

To stimulate economic growth, community leaders often concentrate efforts for

their growth strategies on the recruitment of big businesses to include large-scale

employers such as corporations and manufacturers. The paths to economic development

are about as diverse as the cities themselves (Chapman, 2016). Many other community

leaders concentrate on attracting tandem businesses that compliment and rely on each

other for professional services such as warehouses and shipping facilities.

While both approaches have proved successful in developing new job

opportunities for communities; the truth is that both approaches mostly relocate and

redistribute employment opportunities thereby removing employment opportunities from

the previous location. Development of business opportunities for small towns and rural

areas can often be very difficult because larger cities and large towns can sometimes offer

more attractive business incentives to entice potential employers which make it even

more difficult for small towns and rural areas to compete for business opportunities.

Research Design Selected for Journal Article

The research approach selected for this journal article is a qualitative assessment

implemented as an open-ended research model. The data used to support the results of the

economic impacts on small towns and rural areas delivered in the presentation provided

to support this article is quantitative; while the underlying findings proposed in this

research are qualitative to provide additional understanding and insight into catalysts that
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contribute to economic growth for small towns and rural areas, as well as civic factors

that disrupt economic growth. The small towns and rural areas selected for this research

provide insight into economic growth or the lack thereof under the business climate of

today. The selection of small towns and rural areas highlighted in this research was based

on personal experiences, resulting in 5 memorable small towns and rural areas that have

experienced economic shifts over the past 10 years. In addition to location and past

economic contributions, each small town and rural area selected features fewer than

9,000 residents.

Research Subjects and Settings

While business development activities anchor most economic growth strategies,

there also exists a segment of small towns and rural areas that have successfully reverse

engineered the business recruiting process based on resources available through their

existing value proposition. Despite losing existing businesses and/or resources, many

small towns offered additional services to help stabilize and sustain their local economy.

This research examined small towns and rural areas that include (Marlboro County

History, 2017):

Blenheim, South Carolina

Clio, South Carolina

McColl, South Carolina

Bennettsville, South Carolina

Tatum, South Carolina

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Wallace, South Carolina

Data Collection Procedures

The small towns and rural areas selected for this research boast history dating

back to the 1800s and were economically successful throughout their existence. The

research provided is based on in-person visits for extended periods of time over the past

10 years to each location and interactions with residents. Adding to the data collected

during visits were newspaper articles (Marlboro Herald, 2017) and existing research

available on the research topic.

Data Analysis Procedures

Research results presented in this journal article were analyzed by location and

proximity to larger towns and cities. This approach was selected to help identify:

Availability of Disposable Income for Small Town and Rural Area Residents

Potential for Capitalization Based on Existing Resources

Availability of Local Talent Resources to Fill Potential Job Vacancies

While expansive, the categories selected were intended to convey potential

economic growth using a revitalization approach. The small towns and rural areas were

also analyzed based on their current economic status and economic growth strategy to

provide a concentrated sample set for additional exploration and potential opportunities

to inspire economic growth among small towns and rural areas.

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Research Strengths and Limitations

Community leaders must be committed to development of the local community to

help encourage economic growth. This is particularly accurate when economic growth

strategies require the support of residents. Small towns and rural areas that embraced a

collaborative approach to economic growth could reduce impacts to existing businesses

and pre-existing success factors. Community leaders with standing relationships and

longevity in the community were able work alongside residents to implement successful

long-term and short-term economic growth strategies.

Small towns and rural areas that experienced economic growth over the past 10

years were both future smart and future ready. Economic development is the lifeline for

small towns and rural areas. This was heavily dependent on the small town and rural area

to attract new businesses. In most of the towns assessed, small businesses were the major

contributors to economic growth followed by store-chains and franchise restaurants. For

communities committed to economic development via smart growth, there exists a

number of funding opportunities, namely through the EPA (Chapman, 2016). By

leveraging existing infrastructure components and resources, many small towns and rural

areas could offer new business a proactive posture conducive to support of technological

businesses and manufacturing in addition to existing capabilities.

The rate of success for an economic growth strategy in a small town or rural area

is heavily dependent upon the values and beliefs of the local community. Small towns

and rural areas selected for this research demonstrated a strong sense of pride in family,

religious and community activities. In each situation, community ties were strong with

many residents relying on family members and friends for services that would have
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associated fees in larger towns and cities. There was also a large volunteer presence

noticed in each small town and rural area. Most notably, a high level of attention was

given to new residents and businesses. New families and businesses were almost

immediately incorporated into local community and engaged in sponsorship activities for

local community activities.

Small towns and rural areas must determine their competitive advantage to attract

economic growth opportunities. By establishing distinguishing factors, small towns and

rural areas can better identify business opportunities that cater to their local community.

From location to location, availability of existing infrastructure, lower tax rates, access to

qualified labor resources, and suitable business partners led the list for requirements of

small business owners. In response, small towns and rural areas must constantly reinvent

themselves to remain competitive and keep pace with neighboring economies. For small

towns and rural areas with educational institutions and/or large scale employers the small

town or rural became the distinguishing factor; while on the other hand local businesses

or professional services distinguished a few small towns.

Automation of services and innovative business practices contributed to economic

growth of small towns and rural areas. Services such as Bank On (BankOn, 2017) and

PayNearMe (PayNearMe, 2017) offer residents the ability to conduct financial

transactions to support local businesses electronically where bank services may not be

readily available. Many small towns and rural areas that were once overlooked by

neighboring towns and cities have become an integral part of larger growth opportunities

for local businesses and franchises. Many of the locations highlighted in this research

have transformed service models to support more residents and have increased service
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areas by rezoning. Local business partnerships and town relationships have also

successfully connected community leaders to additional resources for competitive

advantage. Educational resources were also consolidated to add greater visibility to local

schools and provide additional educational opportunities to residents.

Small towns and rural areas embrace economic decisions to sustain the economic

development of the local community. Simply put, what is good for the betterment of the

community is good for the residents. As such, many small towns and rural areas have

built new fire departments, new healthcare facilities and added small businesses that offer

professional services to residents. Defending large scale businesses that bring additional

job opportunities and contribute to the economic growth of the community has been a

major concern. Nevertheless, many of the small towns and rural areas highlighted in this

research acknowledged the need for a balanced economy supported by a combination of

both small and large businesses thereby making the case for sustainable long-term

economic growth demonstrated by achieving the short-term goals of the community.

A balanced economy anchors sustainable economic growth. The lack of economic

diversification creates a greater risk for small towns and rural areas as the impact is

greater due to limited resources. Potential businesses have performed evaluations on the

small towns and rural areas selected based on their economic strengths and profit

opportunities. The decision to relocate or establish a new business was determined by the

current state of the local economy; however, the opportunity to provide a service to the

local community and help small towns and rural areas achieve long-term economic goals

often served as the most important factor in the decision of businesses to sustain

relationships with small towns and rural areas.

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Results and Conclusion

Small towns and rural areas enjoy the highest rate of economic growth by

implementing a diversified business development strategy to attract a blend of large

businesses, small businesses, and professional services. Agricultural development may

be viable strategy for many small towns and rural areas as land is readily available.

Industrial growth may also be a viable solution among additional strategies that highlight

space and flexibility to conduct business. Small towns and rural areas must also develop

strong community leaders that are committed to the economic growth of the community.

Thus, strong community leaders can operate in the best interests of the community and

develop relationships with potential businesses to attract new revenue streams.

If small towns and rural areas actively recruit new businesses and continue to

support existing business relationships, communities may enjoy higher rate of success

through economic growth. The most attractive incentive for potential residents and

businesses to relocate to small towns and rural areas is that they are the exact opposite of

large cities and more densely populated areas. The vast abundance of land, small

businesses, and reduced traffic, coupled with less stress, friendly smiles, and country

scenery offer a great alternative to life in the city. It is important to note that each of the

small towns selected for this research has maintained its existing infrastructure that once

made it the center of economic activity.

Small towns and rural areas can increase chances for economic growth by

creating a conducive environment for businesses to flourish. Also by offering a better

lifestyle for families, strong community leaders, better schools, and better jobs small
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towns and rural areas can compete for residents and business with large cities.

Revitalization efforts of existing communities and neighborhoods to retrofit outdated

infrastructure with updated technology capabilities also adds to the attraction of small

towns and rural areas. Once fully revitalized, small towns and rural areas can offer a

balanced economy and implement sustainable growth strategies that support future

economic growth efforts.

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References

Gibb, S., & Johnson, R. (2015, May 21). Growth in Small Town America. Retrieved February

26, 2017, from http://blogs.census.gov/2015/05/21/growth-in-small-town-america/

Schindler, K. (2014, October 24). Top 10 planning practices for making things happen in rural

and small towns. Retrieved February 23, 2017, from

http://msue.anr.msu.edu/news/top_10_planning_practices_for_making_things_happen_in_rural_

and_small_towns

Chapman, J. (2016, August 24). Small Towns Share a Roadmap to Economic Recovery.

Retrieved February 26, 2017, from

http://www.sustainablecitynetwork.com/topic_channels/community/article_080ce42a-6a30-11e6-

ba2a-c7bda00c5fe4.html