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Our latest infographic examines the benefits and challenges of running a small business in rural America.

Self-employment has dropped across the country since 1990, but it has remained higher in rural areas than suburbs and cities.

Percentage of self-employed in:

• Rural areas:
  • 8.4% in 1988
  • 6.5% in 2016
• Suburbs:
  • 7% in 1988
  • 6% in 2016
• Central cities:
  • 5.2% in 1988
  • 5.7% in 2016

Rural small businesses are comparable in revenue and profit to urban companies.

• Revenue:
  • <$100k: 21% of both rural and urban small businesses
  • $100k-$1m: 52% of rural; 49% of urban
  • $1m-$10m: 24% of rural and 26% of urban
  • >$10m: 3% of rural and 4% of urban
• Profitability:
  • 56% of rural small businesses were profitable
  • 53% of urban small businesses were profitable

80% of rural small business owners believe the quality of life and cost of living are much better in rural areas, BUT they cite challenges.
 

Challenge #1: Access to capital

40% of rural small business owners have trouble accessing capital so most use personal savings.

Funding sources (selected all that apply):

• Personal savings: 71%
• Loan from a community bank or credit union: 14%
• Investments or gifts from friends & family: 13%
• Loan from a large bank: 6%
• Angel investor or seed funding: 4%
• Online lender: 3%
• Crowdfunding: 3%

Challenge #2: Access to workforce

Barriers to finding workers:

• 74%: Finding candidates with the right education, skills or training
• 72%: Finding candidates with the right kind of experience
• 69%: Lack of talent pool in my area
• 53%: Finding candidates willing to relocate to my area

Challenge #3:  Access to connectivity

Digital technology increased gross sales for rural small businesses by 17.2% during the past three years. Twenty percent generate at least 80% of their revenue by selling online. BUT…

• 56% of rural small businesses do NOT have good access to digital technology
• 20.6% do NOT have high-speed broadband
• 5.4% still use dial-up access

Whether your business is rural, suburban, urban or online, SCORE mentors are available in 300 chapters across the country and online.

Infographic designed by Easel.ly.