Rural Retail Business Survival: Implications for Community Developers

Abstract

The loss of retail businesses and sales in rural areas has been accelerating for many years. This study was conducted in 37 rural communities in Indiana, Iowa, and North Dakota that appeared to have better-than-average retail sales. The purpose of the study was to identify strategies, if any, that were employed by communities and individual businesses which contributed to viable retail districts. This study suggests several possible actions for community development practitioners involved in efforts to improve and sustain rural retail business communities. These actions include: the need to assist rural communities build a more diversified economic base, provide business management training and technical assistance, establish mechanisms to transfer established business operations to new owners, develop financing mechanisms for new or aspiring businesses, and assist rural communities to deal with change and plan for their futures.