Location Neutral Business Creating Virtual Suburbanization

Posted on 10/09/2009

An old proverb states, "necessity is the mother of invention". Likewise, difficult economic times are the perfect catalyst for innovative business ideas. Many are reinventing the way they define their business relationships and looking beyond the traditional brick-and-mortar setup. Freelancing, telecommuting, and remote working are increasingly popular ways to work and excellent ways for many to cut costs and save on transportation or office expenses while opening up a wealth of opportunities. The growing industry of Location Neutral Businesses (LNB) faces a number of issues, but could also bring a number of benefits, with savvy rural communities possibly being the surprising winners of the relationship.

Without a traditional office and its accoutrements to define a sense of community, telecommuting workers often search for this sense of place elsewhere - and communities that have this spirit are attracting growing numbers of people who are able to live and work wherever they want, thanks to the boundary-breaking influence of technology. Although these rural communities, often with "natural amenities", like skiing or beach access, have developed a community identity thanks to the locals who have worked to instill community values and create good schools, their appeal is not limited to current residents. Many of these attractive rural communities have traditionally enjoyed a steady income from tourists and have bonded as a community during the off-season. Now, according to a recent New York Times article about the LNB phenomenon, places like Nantucket and Teton County, Idaho, are facing an influx of migrants "creating hybrid communities, implanting urban incomes, tastes, careers...into small towns that until recently could support none of these."

The article continues by quoting Jonathan Schecter, executive director of the Charture Institute in Jackson, Wyo, who explains the significance of the migration of LNBs to small communities, "You are seeing a transformation of rural communities. The same processes that led to the suburbanization of the United States after World War II are now producing a virtual suburbanization in places like Jackson or Steamboat Springs."

Mr. Schecter explains that the accelerated rate of change is producing a whip-lash effect, "because the towns don't have the political and economic systems in place to deal with them." Although the effect of this migration can cause resentment among locals, who increasingly find their own town too expensive to live in or who disdain the influence of the "outsiders", some are realizing the possible benefits these interlopers bring. The New York Times article highlights Steamboat Springs as "one of the first places to identify these new émigrés as a source of economic growth, and paradoxically, community stability. A 2005 survey found that as many as 1 in 10 year-round households was involved in a location-neutral business." Presumably this number will continue to grow. The impact of the new location-neutral population extends farther when one considers their long-term effect on an area. Unlike vacationers or tourists, people who settle in these areas often bring families with children, who they will send to area schools, further embedding them within the community landscape.

Rural communities who wish to attract a location-neutral migration of their own must have attractions to draw these home-office workers. Natural beauty like mountains or a stunning coastline will always be the biggest draw, but small towns with a strong sense of community, excellent schools, and other exemplary attributes can leverage their benefits. By opening themselves to the idea of change, struggling rural communities can catch a glimpse of their possible salvation. Towns that have already drawn telecommuters with their existing amenities can continue to grow by bringing the migrant population the kinds of cultural activities, restaurants, and recreation that will make sure they are there to stay.

The LNB phenomenon raises other questions and ideas beyond the suburban revolution in rural communities. The growing acceptance of remote working and telecommuting will continue to change the way business works. The effects of location-neutral businesses on the cultural and economic landscape of America are only beginning to make their impact known.

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