A New Era for Rural Policy

Small businesses are a crucial part of rural America. They certainlyform the images the nation holds dear about the rural landscape—from the Chatterbox Café to Floyd’s Barber Shop. But the impact of small business on the rural economy is far more than mere image. Main Streets throughout the nation have depended on the perseverance of generations of small entrepreneurs. These rural entrepreneurs have also made big contributions to the national economy through the creation of companies like Caterpillar, Gateway Computer, and Pella Windows. Entrepreneurs may have an even bigger impact on rural America’s future. Globalization has brought profound impacts to the traditional industries on which the rural economy has relied. Rural America must now turn to a new frontier of economic opportunity. Fortunately, the horizon appears rich with promise. But the promise will only be realized if a new generation of entrepreneurs seizes it—probably with both new technologies and new business models. Public policy will play a crucial role in shaping the environment within which rural businesses start and grow. Over time, the nation has reaffirmed the importance of helping rural regions grow their economies. Mark Drabenstott is vice president and director of the Center for the Study of Rural America at the Federal Reserve Bank of Kansas City. This article is based on testimon