A recent article from Daily Yonder focused on "Finding Why Some Rural Places Remain Poor." This is a topic close to NetWork Kansas' heart, as many of our clients are located in rural areas and small communities. Bill Bishop, the article's author, stated: "There are tons of theories about why some communities remain poor while others grow more economically vibrant. Two economists, Stephan Goetz and Anil Rupasingha, set out to find which social or political factors seem to have real effects on poverty and development in rural counties."
The article highlights various efforts that seem to help make a rural community successful and a few surprising things that do not.
One thing that seemed to contribute to rural poverty was the presence of a big box retailer in the community instead of smaller, locally owned stores. "The more big box retailers like Wal-Mart there are in a community, the higher the family poverty rate. Many rural communities try to attract big box retailers. The two researchers conclude this strategy may be self-defeating."
Walburn's Athletic Club, a StartUp Kansas client, is a small business generating social capital
for the community of Emporia, Kansas. Conversely, a high amount of social capital helped rural communities thrive. "The researchers counted the places people might gather, socialize and work together (golf courses, bowling centers, civic associations, political organizations and clubs). They found that rural places with more of these meeting places and organizations had lower levels of family poverty. Social capital seemed to reduce poverty in rural America."
Locally-owned businesses can serve to provide this kind of crucial social capital in rural communities. NetWork Kansas recognizes the tremendous benefit that these kinds of businesses have for rural communities and it echoes throughout the organization's actions. For example, Rawlins County, one of the 2007 NetWork Kansas E-Communities, just approved a loan to re-start a bowling alley in Atwood. It is this kind of investment in community businesses that will allow rural communities to grow strong.
To read the full text of the article, please click
here.