Best Practices for Small Communities

   If we could take a time machine back to America’s small towns in the 1960s and the 1970s, we would find a relatively prosperous environment.  While small towns faced some challenges, many communities enjoyed robust and healthy local economies.  Many farmers were prospering, local factories were winning new orders, and small town main streets were full of shops and restaurants.

   This prosperity had many causes.  For one thing, as the American economy prospered, small towns shared in the wealth.  But, success also had other antecedents.  Agriculture support payments backed farmers and communities were able  to successfully attract (via tax incentives and the like) manufacturing facilities that sought low cost labor and a small town work ethic.  Locally owned and operated institutions, such as small town banks and Main Street businesses, provided another economic anchor.

   Fast-forward to 2003:  we find that many of these old economic anchors no longer exist or have been greatly weakened.  Modernization of agriculture has led to consolidation on the farm.  Globalization and new technologies have made it difficult for many manufacturers to maintain operations in the US.  Bank consolidations have led to the closure of many local banks, and the rise of Wal-Mart and other big retailers have made life more challenging for Main Street businesses.

New Strategy:  Look Within

   The economic picture for small towns is troubling.  But, how can their community leaders respond? Simply doing nothing is a recipe for failure.  At the same time, many other economic development options are limited—recruiting new factories to rural America is becoming extremely difficult.  Small towns need new economic engines, and they need to think differently about their role in bolstering the local economy.

   While there is no single template that will succeed in all communities, there is a single perspective that makes sense:  Look within.  Small towns cannot count on business recruitment or outside investment to lift them up.  They will have to do it themselves by building on the skills and talent already existing in their community.  This homegrown strategy will be based on supporting local entrepreneurs—nurturing people with dreams and a plan to start new businesses or to expand existing businesses.

   Promoting entrepreneurial development is a new and increasingly popular approach to economic development.  By supporting the development of local ventures, this approach seeks to create new jobs, new leaders and bring new innovations to communities.

   When it comes to understanding the need for homegrown jobs, most small town leaders “get it”.  But, getting it is not enough.  Local officials need to act on this strategy, and there’s the rub.  Many city mayors and township supervisors want to support local entrepreneurship initiatives, but they simply don’t know where to start.  What should they do? How much investment is needed? Who should take lead?

   In an effort to answer these questions, the National Center for Small Communities (NCSC) created the Grassroots Rural Entrepreneurship Award honor elected officials of small communities who have been exemplary leaders in crafting effective entrepreneurial development strategies and Turner County SD is one of three finalists honored as a “best practice”.

  Some of the lessons learned include the need for a champion, collaboration, a holistic approach, no sectoral focus and engage for the long haul.

  The details of what local officials can do to spur entrepreneurship can be found at www.smallcommunities.org.  The above information is used with permission.