Top Economic Development Strategies for Rural Communities

Top Economic Development Strategies for Rural Communities Main Photo

20 Jan 2025


News, Strategic Plan

Economic development strategies for rural communities and small cities share many big-picture goals with urban counterparts. Workforce development, business attraction, and quality-of-life initiatives are essential across the board. The difference in the economic development strategies begins to shift in approach and when establishing key performance indicators to judge progress toward end goals. The best strategies blend existing strengths with emerging opportunities while nodding to the local culture. Golden Shovel Agency has helped numerous rural communities develop relevant economic development strategies and craft adjacent marketing to meet retention and development goals. 

Manage local resources and diversify uses

Many rural communities depend on natural resources and land-dependent industries, such as agriculture or forestry, as economic pillars. Economic development strategies should build on these existing and historical assets with an eye toward responsible stewardship and income diversification.

Rural traditional farms may miss out on income generation potential related to organic farming, farmer’s market, or agritourism. Identify opportunities to augment agricultural or resource-based businesses and grow adjacent industries. For example, establishing a regional cooperative to market local produce or scheduling events promoting key products can raise awareness and develop new customers for local businesses, increasing revenue and workforce opportunities.

Grow small businesses as a rural community economic development strategy

Rural communities often lack the population to pull in major retailers, making small businesses essential for providing in-community access to goods and services. Without mom-and-pops meeting basic needs, it can be challenging to grow a meaningful sales tax base to reinvest in infrastructure and quality-of-life improvements to further growth and attract new residents. Investing in small business growth can take many forms – from offering access to educational opportunities or business development services to providing venues for local entrepreneurs to connect with consumers.

Economic development strategies for rural communities should also tap into any available state and federal funding to further projects on a budget. For example, the U.S. Department of Agriculture offers programs like the Rural Business Development Grant for rural governmental entities and other options designed directly for businesses. Compared to larger cities, rural communities may focus more on retaining businesses and growing local stores as wins rather than recruiting outside retail.

Appeal to workers in local metros to boost population and tax base

Rural communities with commutable access to a metro area are uniquely positioned for growth. Inflation and rising home prices in urban areas drive many city dwellers to the countryside for lower-priced real estate and a higher quality of life. Economic development strategies for population expansion should target this demographic. Attraction efforts can include promoting local school and extracurricular strengths, highlighting access to outdoor recreation, and other relocation benefits unique to your community, such as lower property taxes, comprehensive city services, or a well-managed healthcare system. 

Population maintenance or growth may serve as a key performance indicator for rural communities before goals transition to business recruitment or service expansion. As with business development, more residents increase the tax base, and the added revenue helps fund more ambitious initiatives and improvements.

Invest in infrastructure at every opportunity

Small towns and cities have a lot to offer potential residents and businesses, but infrastructure needs can quickly put a pin in development plans. Seek grants and other funding to leverage along with local investments to maintain high-quality essential services, such as water, wastewater treatment, storm drainage, city roads, and healthcare. By nurturing existing services, the community is better positioned to grow and expand as top economic development strategies contribute to business and community growth.

Crafting economic development strategies can be difficult in rural communities with limited local resources. Golden Shovel Agency can alleviate the burden. Contact us to learn how we can assist with your economic development plans.