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Being
a small business owner in
a rural environment can
be satisfying but much of
that satisfaction comes
from teh support of your
neighbors and the
community. This
report from the
University of Missouri
would seem
to indicate that the same
things that draw people
to and make them happiest
in a rural community are
the same things that can
make or break a small
business owner.
 Certain
factors influence
entrepreneurial climate,
MU study finds
Fair treatment,
local support and
high-speed Internet
foster success for small
business
COLUMBIA, Mo. –
Entrepreneurship is
increasing in popularity
as a tool for stimulating
local economic growth and
development. Some factors
that may influence a
community’s
entrepreneurial climate
include quality of life,
business services,
community size and
financial resources.
To better understand the
impact of these factors,
Tom Johnson, a professor
in the Truman School of
Public Affairs at the
University of Missouri,
evaluated data on
entrepreneurial climate
from 158 small business
owners in 12 rural
Missouri communities.
“Creating a climate in
which entrepreneurs and
their businesses can
thrive is crucial to
increasing
entrepreneurial activity
and success within a
community” said Johnson,
director of MU’s
Community Policy Analysis
Center (CPAC) and the
Frank Miller Professor of
Agricultural Economics in
the MU College of
Agriculture, Food and
Natural Resources.
“There is an increased
need to understand what
factors influence this
climate from the
perspective of business
owners with regard to
their specific community,
town and region.”
Johnson found
entrepreneurial climate
is directly associated
with entrepreneurs’
perceptions of fair
treatment, level of local
patronage, and the
availability of business
networks and high-speed
internet. Positive
perceptions of these
factors reflected a
successful environment.
Other factors such as
community quality of
life, proximity to metro
areas, local government
support, and the
availability of business
services and financial
resources did not have a
significant effect on
entrepreneurs’ success,
according to Johnson.
“Surprisingly, several
factors are not problems
or assets for small
business owners. The
business owners were most
satisfied with the
availability of business
services and their
communities’ quality of
life,” he said.
“The key to their
success was the support
they received on a
day-to-day basis and the
patronage of their
neighbors. Owners were
least satisfied with
local government support
and availability of
financial resources and
small business training.
This implies an enhanced
role for developers in
these communities to
facilitate the needs and
opportunities for new
businesses in the areas
of financing and
training.”
Data were collected
using a series of
self-assessment surveys,
which can be adapted by
researchers for further
study in other
communities. Johnson and
researchers at CPAC, in
partnership with Missouri
Rural Development
Partners, developed the
surveys as part of a
guidebook on a
community-based approach
to starting a new
business. See the
report.
(PDF file)
“Findings of this
study provide valuable
information for policy
makers, researchers
measuring
entrepreneurship and
entrepreneurial climate,
and communities seeking
to improve their level of
entrepreneurial
activity,” Johnson said.
“However, this study was
limited to current
business owners and
suggests the need for
further research
comparing surveys from
former and failed
business owners and the
general public.”
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