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Trends in rural small business in 2010
Small Business Trends has published a list of 10 trends to watch in 2010 for small businesses in rural areas.
Top of the list is the census.
Census 2010 – Population counts are critical for government programs, grants, and more for a decade. Smart small towns and counties will be actively finding ways to get everyone counted. Watch for town meetings to answer questions, and a whole bunch of canvassing. Your small town business will be indirectly affected by the results for ten long years.
At number three is the always important "shop local" trend.
- Howard Owens
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Gensee County sees opportunity in rural broadband stimulus package
The Obama stimulus package includes $7.2 billion to help rural America access the Internet more easily, and officials in Genesee County would like to ensure some of that money benefits the region.
Known as "Title VI--Broadband Technology Opportunities Program," the allocation is a mere 1 percent of the entire stimulus program.
County Manager Jay Gsell clued me in a couple of weeks ago about the County's efforts to attract some of that money to help areas of the county that do not yet have broadband access. He said the broadband effort is one of many tasks on the County's to-do list related to bringing as much stimulus money to the county as possible.
Stephen Zimmer, Genesee County Director of Information Technology, said the county is participating in a state program to map current broadband availability and identify areas of need.
New York Farm Bureau President Dean Norton applauds the effort to help rural residents access the Internet more easily.
"Farmers in rural, agricultural areas need broadband," Norton said. "Support for broadband has been in our policy book for years. Technology is necessary to keep agriculture viable. Your business (The Batavian) thrives off of technology and agriculture is needing technology more and more."
Much is unknown even at this point about how the broadband program will be administered, and it may not be until 2010 before we see any results. This PCWorld article explains some of the unresolved questions about the program.
The broadband stimulus program is also not without controversy.
Former FCC economist Michael Katz has been acerbic in his dismissal of rural American and the need for spending $7.2 billion on improving Internet access.
Katz listed ways that the $7.2 billion could be put to better use, including an effort to combat infant deaths. But he also spoke of rural places as environmentally hostile, energy inefficient and even weak in innovation, simply because rural people are spread out across the landscape.
"The notion that we should be helping people who live in rural areas avoid the costs that they impose on society … is misguided," Katz went on, "from an efficiency point of view and an equity one."
According to the same NPR piece, a New York Times article has referred to the rural broadband initiative as a "cyber bridge to nowhere."
But others say the package could help another 20 million Americans get broadband access, and high-speed access does help create and retain jobs.
A study of 3,000 people in Michigan, Texas and Kentucky found those in areas that received broadband Internet grants from the federal Rural Utilities Service quickly signed up for service, matching the penetration rates in cities. That happened where network investment was coupled with community programs aimed at convincing people about the benefits of Internet access.
Home broadband users were more likely to start businesses or take classes online, and less likely to move away, the researchers at Michigan State University found.
Norton said a lot of farmers in Genesee County are still stuck with dial-up, which hurts their productivity. It also keeps them from accessing more advanced online-software that help them run their businesses.
"(Broadband) will help the more progressive and larger enterprises the most," Norton said, "but with the smaller ones, there lies another opportunity to educate people and help them."
Rural towns face challenges in securing stimulus funds
Rural towns may find it hard to compete against metro areas for stimulus funding, according to an Associated Press report.
Big cities have more shovel-ready projects and deeper pockets to fund staff time to make applications.
"I feel that we're at an unfair disadvantage because I can't put a staff of 10 on to go out there and see what we can qualify for," Silver City Manager Alex Brown said.
Gov. Bill Richardson and Lt. Gov. Diane Denish said at a news conference last week rural communities need help to get their share of the federal money.
"Some rural communities, they don't have the staff and the expertise, in some cases, to make some of these submissions" required to apply for stimulus money, Richardson said.
Meanwhile, on small town in Vermont was surprised to find that it had to come up with 20 percent matching funds to qualify for stimulus aid on a project.
The town submitted its applications and learned it must come up with 20 percent in matching funds. "We are at a definite disadvantage there is no way we can raise that kind of money," Viskup said. The town says the 20 percent match was never mentioned and expected the stimulus money would fully fund the projects.
- Howard Owens
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NPR reports Obama apparently backing away from promise for rural summit
Early in his campaign for president, Barack Obama promised to call Republican and Democratic leaders together within his first 100 days for a rural summit.
NPR's Howard Berkes reports that the Obama White House seems to be backing away from that promise.
Inouye then cited rural initiatives in the stimulus bill and Obama's proposed budget. "His administration is taking affirmative steps to help strengthen rural America."
As to the pledge of a rural summit in the first 100 days, Inouye said, "[Obama] is working with his Cabinet, advisers and congressional allies to form a comprehensive rural agenda, and is planning on hosting a forum to discuss those ideas."
That's a commitment to do something, but not in the first 100 days, and not in the form of a summit in Iowa.
Yes, a lot has changed since Obama made his pledge, and it doesn't appear that Obama's administration is completely forgetting rural towns. And I'm not even sure, frankly, what a rural summit would accomplish.
But it's good that reporters like Berkes are out there looking after rural America's interest.
- Howard Owens
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