Building a Future for Your Community in a Recession

Communities that offer their support can sprout new business in hard times. Hard times are hard on people. They drive some of us out of jobs and homes. Rural communities that reach out and offer options to those whose lives have been disrupted can help secure their own future. We see several potential strategies for small communities amidst the recession. They include helping micro businesses, offering affordable housing, expanding recreation, tapping stimulus funds, and being inviting.

Offer the Opportunity to Start a Small Business – Microenterprise, defined as businesses with up to five employees, is especially critical in a recession. During the 2000 to 2003 recession, employment grew nationally in microenterprise by over nine percent while falling in larger firms. As jobs become less available, people who’ve always wanted to start a business have one more reason to do it.

Communities that offer their support can sprout new business in hard times. One important thing communities can offer is access to a building with good internet service at an affordable rent. This keeps new businesses from burning scarce capital on a building. One approach is to buy vacant buildings in the depressed real estate market, get them in good shape, and offer to rent them to aspiring businesses.

Communities can also work with local lenders and microenterprise programs – like the Center’s REAP program – to help new businesses line up financing and develop a feasible business plan.

Offer Affordable Housing – High unemployment and the mortgage meltdown have put many Americans out of their homes. And falling job prospects have left them struggling with the high cost of living in metropolitan areas. Rural communities that invest in their housing can use it to draw folks looking for alternatives to the congestion, long commutes and expense of metropolitan life.

Offer Inexpensive Pleasures and Recreation Close to Home – Americans have made a pronounced shift towards spending less. That can create rural business opportunities as folks who previously traveled to distant locations for vacations look closer to home. This is a good time to promote local cultural events as well as hiking trails, lakes and other environmental assets to people looking for an enjoyable authentic experience closer to home.

Tap into Stimulus Funds - There may be no better time to secure federal funding for community projects. Contact your state USDA Rural Development Office and your state energy office to learn about grant opportunities for community facilities, entrepreneurship, energy efficiency, alternative energy and small business development.

Be Inviting - We all want to be wanted. Communities that invite folks in and embrace them will always be more vibrant than those that keep their distance. New people won’t come or stay if they don’t feel welcome. And fresh blood and ideas make us stronger. Promoting housing and business opportunities in the community and reaching out to alumni who have left to invite them back have proven effective.

Agree or disagree? Send your opinions to Chuck Hassebrook, chuckh@cfra.org or call 402.687.2103 x 1018.