rural

Educational attainment helps drive community prosperity

Despite an uneven economic recovery, fewer Americans are living in distressed communities and more are living in prosperous ones, according to a recent report from the Economic Innovation Group (EIG), a Washington, D.C.-based policy and advocacy organization. Comprised of seven factors measuring socioeconomic health, the Distressed Community Index (DCI) divides the country’s zip codes (communities) into five quintiles — prosperous, comfortable, mid-tier, at-risk, and distressed — and tells the story of the country’s economic health across two time periods, the recession years of 2007 to 2011 and the recovery years of 2012 to 2016. EIG finds that the employment and business establishment growth during the economic recovery has been mostly limited to prosperous communities, where the population tends to be more educated and the housing vacancy rate may be lower.

Pilot program matches researchers with economic and community development issues

Vibrant Virginia (VV), a new program from Virginia Tech’s Office of Economic Development, is offering seed grants as a way to encourage faculty and graduate students to explore persistent public policy challenges spanning the state’s urban, suburban, and rural communities. Providing between $5,000 and $12,000 to university researchers targeting key issues facing the state, VV has an initial focus on Southwest Virginia, Hampton Roads, Northern Virginia, and Southside Virginia – regions located outside of the university’s traditional footprint. Examples of projects funded so far include programs that match public school students with internships, build online capacity at rural nonprofits, and use population health expertise to identify strategies around the opioid crisis. The VV program also funds regional conversations to help Virginia Tech become a more effective partner in advancing community changes, as well as academic projects, which seek to highlight important challenges and opportunities across the state. 

ARC commits $20M for new round of POWER grants

The Appalachian Regional Commission has released a request for proposals for the 2018 POWER (Partnerships for Opportunity and Workforce and Economic Revitalization) Program. In this round of funding, ARC will commit up to $20 million to support efforts that create a more vibrant economic future for coal-impacted communities in the ARC region by cultivating economic diversity, enhancing job training and re-employment opportunities, creating jobs in existing or new industries, and attracting new sources of investment.

While rural entrepreneurship declines, rural businesses nearly match urban peers’ innovativeness

Two recent reports provide good news and bad news regarding innovation in America’s rural areas. Only one in six individuals living in rural areas was self-employed in 2016 — down from one in four in 1988, according to a new issue brief from the Small Business Administration (SBA). This represents a decline of nearly 20 percent over that span of time. Meanwhile, a recent report from the Department of Agriculture’s Economic Research Service (USDA ERS) found that between 2010 and 2014 rural businesses in some nonfarm tradable industries are as likely to be substantive innovators as their urban peers. This is especially true across manufacturing industries with nearly identical rates of substantive innovation between both rural and urban companies.

USDA reorganization of Rural Development concerns supporters

While U.S. Secretary of Agriculture Sonny Perdue has announced that the Rural Development agency would be elevated under a reorganization plan because it would be placed under the direct oversight of the Secretary, not everyone is viewing the consolidation as an elevation. The reorganization plan details efforts to “improve the effectiveness of USDA efforts” and includes plans to realign the Farm Service Agency, the Risk Management Agency, and the Natural Resources Conservation Service under a newly created Under Secretary for Farm Production and Conservation. While the report states that the reorganization will elevate Rural Development (RD), in the process it loses its own undersecretary. The USDA Office of Communications, in response to an SSTI request for clarification of the change, responded: “The agencies contained within Rural Development will remain as currently constituted and be led by the Assistant to the Secretary, who will have rural prosperity as a sole focus. Rural Development is gaining power, access, and direct influence. Secretary Perdue is a son of rural America and believes fully that this is an increase in stature for rural issues at USDA.”

Facing deindustrialization, smaller regions turn to innovation, workforce development

In a recent Digest article, SSTI covered research highlighting the oversized role that offshoring multinationals had in manufacturing employment decline from 1983 to 2011. During this time, deindustrialization and manufacturing unemployment had a profound impact on community approaches to economic development. Larger metropolitan areas like Pittsburgh, PA, Roanoke, VA, and Greenville, SC, have received considerable acclaim for their ability to restructure their economies around new and innovative technologies. Less covered, however, are the smaller rural or rust belt regions that are seeking to leverage higher education, community partnerships, an increasingly skilled workforce, and innovative technologies to become more competitive in a 21st century economy.

ARC awards $26 million for economic diversity

The Appalachian Regional Commission (ARC) announced $26 million in awards to expand and diversify the economy in coal-impacted communities in five states. This adds to the $47 million ARC has invested since 2015 through the Partnerships for Opportunity and Workforce and Economic Revitalization (POWER) Initiative. The 31 awards that were announced in late January are projected to create or retain more than 2,500 jobs and leverage an additional $32 million from public and private investors.

USDA Announces Launch of $100M Rural Business Investment Company

The U.S. Department of Agriculture (USDA) announced the launch of the McLarty Capital Partners’ Rural Business Investment Company (RBIC) – a new private investment fund with the potential to inject $100 million into growth-oriented, small businesses across rural America. As the fifth RBIC to launch since 2014, McLarty Capital Partners’ RBIC is part of the Made in Rural America initiative, an ongoing effort by the Obama administration to attract private sector capital to investment opportunities in rural America and drive more economic growth in rural communities.

Recent Research: Broadband Availability and Rural Entrepreneurship

Because existing evidence points to the presence of broadband as having a positive connection to the economic health in rural areas, numerous states and the federal government have made increasing broadband in these places a top priority.  In particular, many rural areas view broadband as an important tool in attracting entrepreneurs and other creative-class employees. Although this tactic is well intentioned, new research suggests that the association between expanded rural broadband availability and the proliferation of entrepreneurship and creative-class employees may not be as strong as one might think, and that the relationship may actually be negative.

Obama Administration Announces $66M via POWER Initiative

In partnership with the Appalachian Regional Commission (ARC), the Economic Development Administration (EDA) announced the availability of $65.8 million in new funding through the Partnerships for Opportunity and Workforce and Economic Revitalization (POWER) initiative. The POWER Initiative is a multi-agency effort aligning and targeting federal economic and workforce development resources to communities, regions and workers that have been affected by job losses in coal mining, coal power plant operations, and coal-related supply chain industries. The new funding will help communities and regions develop new strategies for economic growth and worker advancement.

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