Achieving progress in the promotion of entrepreneurship will require the implementation of a variety of important policies and programs by local, state, and federal government entities, or by community-based organizations. This brief provides a synthesis of some of the policies and programs that hold promise in seeding entrepreneurship in small or rural communities across the U.S. The strategies outlined are a product of the insights offered by nearly 1,200 individuals taking part in entrepreneurship listening sessions hosted by the Regional Rural Development Centers across rural America in 2005 and 2006. Participants included entrepreneurs, technical assistance providers, lenders, and economic development specialists. Their input is further affirmed by contemporary authors and the practices of communities successfully pursuing economic development that embraces entrepreneurship. The views of listening session participants are captured along three major thematic areas.

THEME 1: Enhance services to build and sustain entrepreneurial enterprises.
Potential strategies include:

• Cut red tape
• Streamline the business start-up process (licensing, taxes, etc.)
• Develop a one-stop shop for entrepreneurs and small businesses
• Simplify state and local laws, rules and policies for small businesses
• Streamline federal loan applications
• Promote policies that help create niche markets for state industries
• Facilitate the availability of affordable health care insurance for entrepreneurs
• Improve IT infrastructure investment activities in rural areas, such as cell towers and high speed broadband
• Develop and deliver coordinated education and technical assistance programs through the auspices of locally-based Extension offices, community colleges, and service providers
• Expand access to mentors, coaches, and peer advisors

THEME 2: Expand financial capital and tax incentive programs for entrepreneurs.
Possible solutions are to:

• Establish a payroll tax policy favorable to new small businesses
• Offer tax breaks and incentives for small businesses
• Provide tax incentives to those creating jobs locally
• Create incentives for entrepreneurs to partner and collaborate
• Create more options for securing capital on the part of entrepreneurs, through the creation of community development financial institutions, micro lending programs, and stable grant programs

THEME 3: Implement other entrepreneurship-friendly policies.
Strategies for this theme include:

• Place entrepreneurship as a core element of the community’s long-term economic development plan
• Form networks of community leaders, educators, elected officials, business owners, and service providers to facilitate entrepreneurship education, to create incubators, and to develop funding sources for these start-up businesses.
• Encourage “buy local” programs and incentives
• Celebrate and recognize successful local entrepreneurs
• Invest in the development and delivery of entrepreneurship programs in local schools and area colleges

If you want to read more about these policy and program options, check out reports published by the Regional Rural Development Centers on the listening sessions held in their respective regions.

Northeast Regional Center for Rural Development's report is available at http://www.nercrd.psu.edu/Publications/rdppapers/rdp37.pdf
North Central Regional Center for Rural Development is available at http://www.ncrcrd.iastate.edu/pubs/contents/rrd191-readonly.pdf
The Southern Rural Development Center's report is available at http://srdc.msstate.edu/publications/238_voicesofthepeople.pdf
And the Western Rural Development Center's report is avaialable at http://extension.usu.edu/files/publications/publication/pub__6990608.pdf

Prepared by Bo Beaulieu, Southern Rural Development Center