• Skip to main content

RuralRISE

Rural Entrepreneurship Ecosystem Builders

  • Summit 2023
  • Broadband
  • 2023 Speaker Series
    • 2022 Speaker Series
    • 2021 Speaker Series
    • 2020 Speaker Series
  • Previous Summits
    • Summit 2022
    • 2021 Virtual Summits
      • Summit 2021
      • Broadband Mini-Summit
        • RuralRISE Broadband
    • Summit 2020
    • Summit 2019
    • Summit 2018
  • RuralNOTES Blog
  • Join Us

Rural Infrastructure

Aug 30 2022

5 Infrastructure Options to Increase Rural Broadband Internet Access

For inhabitants of urban areas, Internet access feels like a guarantee. However, rural residents know that having access to reliable Internet is anything but certain.

To bridge that connectivity gap and help expand the reach of broadband service to rural areas, the Affordable Connectivity Program was created in late 2021.

But what kind of infrastructure is available to rural communities looking to expand access to all residents? Multiple types of infrastructure can create broadband connectivity, each with unique benefits and drawbacks. In all cases, cost is a driving consideration. 

No singular solution will work to equip all rural areas with high-speed broadband because every area has a unique baseline of resources available and different considerations when selecting broadband infrastructure that works for their region.

This post breaks down five kinds of Internet infrastructure and where rural communities might best utilize it.

Five Types of Broadband Infrastructure

Broadband infrastructure refers to the networks of deployed telecommunications equipment and technologies necessary to provide high-speed Internet access.

The most commonly used broadband infrastructures include plain old telephone services, fiber-optic cables, satellites, 4G and 5G networks, and fixed-wireless networks. 

Let’s look at each in detail, including the benefits and drawbacks.

1. Plain Old Telephone Service (POTS) 

Plain Old Telephone Service is the traditional analog phone service operating through physical copper wires. 

These are the old-school telephone poles and wires draped along roadsides and over hills, connecting individual homes to communication networks. 

The benefits of upgrading the POTS system are clear: 

Copper wires in good condition can be enhanced with the addition of a modem (a digital device that converts phone data into a data format that’s transmissible through the POTS), yielding high-speed internet connectivity. 

Established telephone lines in rural areas are commonplace, which makes them an excellent resource for expanding high-speed internet to rural areas. Modems in the home physically connect a computer to the Internet through a cable and provide fast and stable connections. 

The list of drawbacks, however, is not insignificant:

Signal interference often comes from inclement weather; because the infrastructure is out in the open, damage to the poles and wires will interrupt services. 

Attenuation (the loss of signal over distance) occurs as a user is further from robust POTS infrastructure. 

Users also experience asymmetrical speeds for uploading and downloading.

2. Fiber-Optic Cables

Unlike the copper cables in POTS systems which use electrical voltage to transmit data, fiber-optic cables are broadband-specific cables buried underground that create a communicating network of glass or plastic carrying light (data).

This revolutionary invention provides a fast and reliable internet connection, and because the cables are buried, the quality of the connection is not impacted by weather and is infrequently damaged. 

Certainly, drawbacks exist:

It is a labor-intensive resource to deploy (and not cheap)! 

For example, the cost for providers to install fiber-optic calves is between $1 and $6 per linear foot of cable. However, this does not include labor and machinery, conduit, and any unforeseen setbacks a large installation might face.

Furthermore, burying cables is challenging in rough terrain, which elevates the cost and may be prohibitive to the process. In addition, there are sometimes right-of-way concerns.

Despite the drawbacks, this technology has been used for decades and will remain the dominant method of transmitting information for the foreseeable future. 

Given the preference for this method, there have been some advances in the deployment process.

For example, some engineers are using a method called microtrenching, where instead of burying the cables three feet below the ground as is traditional, a narrow cut in the ground is made that’s approximately 1-2 inches wide and up to one foot deep.

A State to Emulate

North Dakota offers a success story in the deployment of fiber-optic cable networks. The state installed hundreds of miles of high-speed fiber-optic cables through a federal program launched under President Obama, the Broadband Technology Opportunities Program (BTOP). 

Through BTOP, North Dakota prioritized running high-speed fiber-optic cables to large universities around the state. Establishing these public institutions as hubs for high-speed internet increased the number of anchor networks around the state and decreased the middle mile gap. 

As shown on the map below, North Dakota has some of the most effective high-speed Internet in the nation.

Image Source: How Did North Dakota Become the Crown Jewel of the Internet in the Midwest?

3. Satellite Internet 

Satellite Internet uses a satellite dish that facilitates two-way (upload and download) data transmission. Individual users place a small satellite dish on top of their roof or another static object on their property, transmitting data signals from the at-home satellite dish to one in orbit around the Earth.

Installing a satellite dish is simple and once established, the Internet connection is immediate and often faster than a POTS connection. Compared to fiber-optic, however, satellite service is slower. 

Its ease of installment and non-reliance on larger Internet providers is a significant perk for users in rural and remote areas. However, while a satellite server would not be subject to the functionality of an entire system such as the POTS and fiber-optic, damage to the individual device is possible and would immediately interrupt service. 

Additionally, satellite service sometimes experiences signal interference due to weather.

Cost to the user is one drawback of satellite service. The average cost of a satellite internet plan is $110/month, not including the initial cost of purchasing the satellite and having it installed, altogether a few hundred dollars.

4. 4G and 5G Networks 

Mobile/Cellular carriers provide 4G (fourth generation) and 5G (fifth generation) networks of cellular communication, which use radio waves to transmit data that enables Internet connection.

The difference between 4G and 5G is the data transmission speed. 5G networks are more efficient, capable of handling more connections per antenna and providing faster upload and download speeds; 5G will eventually replace the 4G network. 

And antennas that navigate these radio waves can be placed on established infrastructure like telephone poles and public institutions.

The ubiquity and portability of mobile devices like cell phones make this method of internet connectivity desirable. 

Once providers install the 4G or 5G antennas, users immediately benefit. While 4G networks were designed with cellphones in mind, 5G networks are designed to be compatible with other industrial technology.

Farmers in rural America already benefit from this advanced infrastructure as they use high-tech tractors to coordinate planting, watering, harvesting, and crop data. 

Unsurprisingly, reliable cellular access is still challenging in rural and remote areas, with people reporting spotty to no coverage. Because of this, as 4G and 5G networks expand, providers will need to consider how to reach areas that still lack adequate cell coverage.

5. Fixed-Wireless Networks 

Fixed-wireless networks are stationary towers and antennas that carry data through radio waves transmitting a carrier’s signal across frequencies. Significantly, this technology advances 5G networks of cellular communication that enable Internet connection. 

Fixed-wireless deployment relies on a central tower that broadcasts signals to other receivers installed on individual users. Like a satellite dish, a 5G antenna can be installed on a user’s property and provide a wireless connection to multiple personal devices. 

Much like 4G and 5G networks, the main benefit of fixed-wireless networks is that it builds upon the commonplace technology of cell phone service. It also rivals fiber-optic cable connectivity in speed.

However, the cost of bringing a fixed-wireless network to the home is not insignificant. Similar to satellite connectivity, there is a cost for installation and varying equipment such as the antenna, router, and surge protector. 

Another commonly cited drawback to fixed-wireless is that when multiple devices are connected to a fixed-wireless antenna and used simultaneously, the connection becomes less effective. Attenuation is also a factor for fixed-wireless networks, with greater distance from the antenna reducing the connection speeds. 

And similar to the 4G and 5G networks, in areas with little to no existing cell phone coverage, there is reduced opportunity for fixed-wireless networks. 

Given the options for bringing broadband to rural America, the average urbanite might think it’s simple to achieve. But as any rural resident can tell you, it’s a little more complicated.

Broadband Internet Infrastructure Options for Rural Areas

While demand for high-speed internet is high, there is no single “right” answer for bringing that connectivity to rural communities. 

Not all communities, for example, have a POTS that they can modify to provide Internet connectivity. A satellite or 5G option would be more effective in that case. 

Ultimately, the answer to how to bring high-speed Internet to rural America will be multifaceted, using all infrastructure deployment methods.

In an effort to share stories of success nationwide, and given the unique solutions each community will need to deploy to provide their residents with broadband internet, we invite you to share your experience by leaving a comment here or starting a conversation on Twitter (@RuralRISE).

Written by RuralRISE Tech · Categorized: Rural Broadband · Tagged: broadband internet, Rural Infrastructure

Aug 23 2022

Federal Programs Provide Pathways to Affordable Broadband

If you were raised in the 1980s or earlier, chances are you grew up analog. But fast forward into the 21st century, and the Internet has become a necessity. Sadly, not everyone has equal access to this needed service.

The good news? With modern daily life relying on the Internet, the federal government has created pathways to promote access to affordable Internet for individuals, communities, and businesses.

The process involves modernizing legislation around broadband provisions – such as the recent executive order promoting competition in the broadband sector – and proposing new bills to establish broadband affordability. 

These efforts have yielded many federal programs that provide pathways to users looking to improve their connectivity or reduce the cost of their Internet access. Some pathways are even targeted to specific groups like Indigenous communities and rural hubs like libraries and schools. 

Let’s look at why these efforts are essential.

Accessing Online Resources Isn’t Optional

The White House acknowledges that access to high-speed internet is no longer considered a luxury but is a crucial resource for our daily lives. 

However, the current broadband landscape shows noticeable gaps in accessibility across America. While many factors contribute – like age, socioeconomic status, and race – these gaps are especially pronounced between rural and urban areas.

Broadband infrastructure was historically deployed across more accessible, affluent, and densely populated communities. Unfortunately, this often neglects low-income, minority, and rural communities. 

Of the 25 million Americans that lack broadband access, 19 million live in rural areas. Survey data from the Pew Research Center reports that 58% of adults in rural areas have a high-speed broadband connection at home, as opposed to 67% in urban areas and 70% in suburban areas.

This gap between people who have access to broadband services (and know how to use them) and those who do not have such access or knowledge is called the “digital divide.” Minimizing this divide is critical to the success of individuals, businesses, and our nation as a whole.

To help begin to bridge this divide this article will describe the current major pathways users can choose when seeking to improve or initiate affordable rural Internet access in their community.

Federal Programs and Points of Access

Many federal programs work to equip and assist public institutions with acquiring needed Internet services rather than focusing on individual users. 

This trickle-down tactic has its pitfalls for everyday users of the Internet. Because the cost of installing broadband has historically been high, individuals have gone without this resource in their homes.

Federal agencies that provide funding to support broadband access include the:

  • Federal Communications Commission (FCC), 
  • U.S. Department of Agriculture (USDA), and 
  • National Telecommunications and Information Administration (NTIA). 

The United States Government Accountability Office (GAO) has identified 133 current funding programs within these agencies to support broadband access. 

However, many of these programs are designed for organizations to deploy broadband, so they do not directly serve individuals. These varied access points create an unclear set of directions for providers, and the GAO has called for a strategy to coordinate these programs and reduce confusion.

Before we move on, let’s examine three programs and pieces of legislation.

Federal Programs for Affordable Broadband

One early federal program that has worked to assist public institutions with broadband infrastructure is the Federal Communications Commission’s (FCC) E-Rate program. It was established in 1996 to make services more affordable for schools and libraries by providing discounts for telecommunications, Internet access, and internal connections. 

This program has been impactful but left gaps in provisions since broadband infrastructure has moved well beyond the confines of schools and libraries.

The recently passed Bipartisan Infrastructure Law (BIL) was signed into law in November 2021. This law aims to address many infrastructure issues faced by the current U.S. infrastructure landscape, including broadband accessibility. 

It has laid the groundwork for significant advancements in broadband provisions and accessibility, including ease of infrastructure installation for businesses and reducing costs for individual users. 

The FCC launched the Affordable Connectivity Program (ACP) just after the BIL was signed into law. This program assists individuals in a way other funding programs do not. 

The ACP is a legislative solution to broadband affordability that assists families and households who struggle to afford Internet service. It includes broadband discounts to eligible individuals and households.

Next, we’ll look at what’s being done to make things easier for end users.

The ACP and Ease of Use

The goal of the ACP is to simplify entry into federal programs that support Internet installment. Following are a few examples of how this new legislation will help.

Responsibility for contacting eligible households has been placed onto the federal agencies already providing financial assistance to Americans (e.g., Pell Grants, Medicaid, Supplemental Security Income, SNAP, and Free and Reduced-Price School Lunches).

The presidential administration is partnering with states and cities to spread the word through state avenues of communication such as text alerts, flyers, and email newsletters.

Public interest organizations will conduct direct enrollment and outreach because organizations like United Way and Goodwill (among others) have significant user bases that can benefit from these new programs. 

The government has also established easy-to-use websites to streamline applications:

  1. GetInternet.gov details how Americans can sign up for the ACP and find participating Internet providers in their area.
  2. Affordableconnectivity.gov takes users to the program homepage.

Next, let’s move the conversation to how these federal programs impact historically marginalized communities.

Broadband and Indigenous Communities 

Notably, the BIL shows a commitment to providing broadband access to Tribal territories and Indigenous communities. 

In 2019, the American Indian Policy Institute (AIPI) found that 18% of Tribal reservation residents have no Internet access at all, and 33% rely only on smartphones for Internet service.

Regrettably, this solution pales in efficacy compared to other Internet access methods.

To correct this particular digital divide, the BIL has created $13 billion in funding to support general infrastructure in Tribal communities, with specific programs promoting affordable, high-speed Internet: 

  • The Tribal Broadband Connectivity Program will distribute grants to be used for the expansion of access to and adoption of broadband services on tribal land or remote learning, telework, or telehealth resources. 
  • Additional grant programs for Tribal territories include the State Digital Equity Planning Grant, the State Digital Equity Capacity Grant, and the Digital Equity Competitive Grant. 
  • Tribal governments are encouraged to consider cybersecurity when deploying broadband infrastructure. The BIL has set aside $30 million through the State and Local Cybersecurity Grant Programs specifically for Tribal governments to use for cybersecurity efforts.

Visit the ACP’s “Enhanced Tribal Benefit” website to learn more about qualifying for broadband resources through this program.

So what’s next for rural residents?

Next Steps in the Search for Affordable Rural Broadband

The Internet has not only become a resource for enrichment; it is also growing as a tool to provide resources such as healthcare, education, security, and more. 

State and federal resources are also offered and managed through broadband Internet. For example, the ease with which everyday Americans can email the White House, contact their Senator or House Representative, or research ballots in upcoming elections is directly tied to access to the Internet. 

When broadband is affordable and accessible, the resources available through it will increase in use and impact society. Therefore, we believe affordable broadband is imperative for the success of individuals, businesses, and our nation

Written by RuralRISE Tech · Categorized: Rural Broadband · Tagged: broadband internet, Rural Infrastructure

Jun 30 2022

White Paper Preview: Rural Internet and the National Broadband Plan

Data from the Pew Research Center reports only 58% of adults in rural areas have high-speed broadband connection at home, as opposed to 67% of adults in urban areas and 70% of adults in suburban areas. And according to the 2016 U.S. Census Bureau, nearly one-fifth of the United States population (61 million people) resides in rural areas of the country.

Broadband accessibility has become a fundamental part of our everyday lives and is often recognized as a need for effective modern living. But since so many people in America (especially in rural areas) lack broadband access, there is a high level of inequality when it comes to who reaps the benefits of the internet.

The pandemic revealed just how critical broadband access has become: as our nation weathered the pandemic shut-downs with a shift to virtual work, learning, and living, rural communities have had notable challenges keeping up.

In one mid-pandemic survey by Satellite Internet, 29% of respondents said their current internet connection has difficulties supporting WFH or online learning and over 30% use a hotspot or mobile tethering at home to get internet access (which is often slower and more expensive than internet plans available in urban areas). 

Rural communities are an integral part of the American economy, security, and identity. Outfitting these communities with broadband resources invests in their potential.

National Rural Broadband Plan 2022; image of a laptop in a field of yellow grass.

Through the National Rural Broadband Plan White Paper, RuralRISE and RuralRISE Tech provide insight into broadband provision gaps, inform policymakers targeting these issues, and encourage the distribution of broadband resources. 

Topics Covered & Questions Raised

Our National Rural Broadband Plan White Paper has been informed through research, review, surveys, and collaborative efforts with partners. In July 2022, we gathered consumer feedback to make our representation of community needs even more robust! 

Broadly, topics covered in the white paper include: 

  • The urgent need for the implementation of broadband resources and how the economics of rural America are driving the need for broadband, providing unique opportunities for success,
  • Existing infrastructure that can – and should – be leveraged to expand broadband tools (e.g. public infrastructure as well as public institutions),
  • Administrative options for broadband provisions, and 
  • The greater impacts of inaccessibility on certain rural groups such as Indigenous communities and LGBTQ+ individuals.

The logistics of broadband expansion come with considerations that are critical to the process and this White Paper raises important questions such as:

In what ways is a lack of broadband access contributing to our country’s digital divide?
What is the cost of deployment to providers versus the cost to consumers? And how can the cost be impacted (or offset) through federal assistance programs or private investors?
What are the logistics of choosing the “right” infrastructure for broadband deployment?
What are the unique challenges faced by rural and remote areas that will directly impact the expansion of broadband infrastructure?
What types of partnerships are effective in deployment?
How do we best address the current disproportionate impact of access on marginalized communities?

To help us answer these important questions, we could use your help.

Thank You For Your Feedback!

This white paper will be used to inform the public and policymakers. We want to represent diverse viewpoints and be inclusive in our representation of the issues facing rural communities.

The conclusions and recommendations in this white paper are still being finalized. Thank you to everyone who added their comments and helped us round out this white paper. Stay tuned to RuralRISE this fall when we release the final version of the paper!

Written by RuralRISE Tech · Categorized: Rural Broadband · Tagged: broadband internet, Rural Infrastructure

Apr 13 2021

Broadband Funding is Coming. Now What?

This guest post comes from Maggie Drummond-Bahl, the Senior Program Officer at Maine Community Foundation, working with donors and other partners to improve the quality of life for all Maine people.

More funding is (finally!) coming to support better broadband connectivity.  What can we do to ensure that rural and remote communities can maximize this much-needed investment? What role should funders play?

For rural states and communities – and the people and businesses that live and work in them – federal funding through the Economic Recovery Act to expand high-speed internet is welcome news. That news is sweet indeed after a grueling and heartbreaking year of COVID-19 when our ability to connect virtually was more important than ever. 

Before we can jump at this opportunity, though, we have work to do. And we need to do it quickly. Here are some thoughts about how we can approach this unprecedented opportunity to become better connected than ever before.

Work to build community capacity

Successful broadband expansion often starts with a few committed champions, much like entrepreneurial ecosystem building often begins with a few key connectors. Champions can identify and recruit others to create broadband committees or working groups and help launch a conversation. 

Two women sit with their backs to the camera at a community event.

Bolstering these local and regional planning efforts can help educate community members about what they need and what goals they share as a community.

Local efforts can, with limited resources:

  • Conduct community surveys, 
  • Host meetings, 
  • Engage with local organizations, institutions and businesses, 
  • Develop maps, 
  • Talk to providers, 
  • Evaluate options, and 
  • Eventually make progress toward implementing infrastructure.

All of these steps are essential, so the community knows what it needs and wants – and more importantly why – long before large-scale funding is available.  

Leave no person behind

Successfully building even a fiber-to-the-premise network isn’t enough. We must consider who can afford the service and how to ensure that people can access devices to connect.  

Children work on a science project in their classroom. Ensuring equitable broadband access for all children is imperative.

The digital divide is about more than the lack of broadband infrastructure itself — it’s about ensuring equitable access to high-speed internet for everyone in our communities.

Broadband committees, working groups, and community outreach should meaningfully include a broad range of people: students, low-income families with children, older people, Black, Indigenous and other people of color, entrepreneurs working from their homes, and critical institutions in our communities.

We should constantly ask ourselves: 

  • Who is not at the table? 
  • Who is not being served and why?  

This pandemic has made painfully clear the inequity in our systems, especially the ability to connect to affordable, reliable, high-speed internet. When we’re all involved in the conversation, we all benefit.

Forge meaningful partnerships

In Maine, a place that prides itself on a certain hearty independence, building trust across institutions, between communities and government, between neighboring towns, and even between customers and providers, has been critical as we move forward.  

A group of four colleagues stand together, with two people shaking hands.

A great example is the growth of the broad and diverse stakeholder coalition, the Maine Broadband Coalition. The coalition was founded as an ad-hoc group with scarce resources several years ago to elevate the voices of broadband users in policy and other conversations. 

The Coalition now regularly communicates and shares information with over 2200 people — up from just 220 when we made our first grant to the group in early 2019. 

The Coalition is also the home of several unifying initiatives including a successful bond campaign in 2020, a new statewide speed test campaign, and an annual conference where communities and partners share their learning and connect with one another.

We’ve also seen great partnerships emerge between social service agencies serving vulnerable populations and digital literacy experts placing hotspot tablets into the hands of people who need them — along with 24-7 technical assistance.

Coordination between funders is another highlight, where our own grantmaking has been informed and bolstered by our state partner, the Connect Maine Authority, and other private foundations and donors. 

This has allowed flexible early-stage capital to move planning efforts, community engagement, and digital inclusion. These are just a few examples, but partnership is the secret sauce for all. 

Be flexible and entrepreneurial

It has become abundantly clear that the solution for one community is not likely to be the solution for another. We should all strive to be nimble and support varied approaches to increase connectivity.  

An illustration of a computer with the words "stay connected" is painted in yellow on a turquoise blue wooden background.

Here are a few examples of what this looks like in communities around the state:

  • A municipal broadband utility was the right approach for several communities in remote Downeast Maine — and they were the first in the state to try it. 
  • Other communities are pursuing dark-fiber, open-access networks. 
  • Some needed to add WiFi networks on Main Street or upgrade routers at the library for public access. 
  • Still others are opting for an upgrade with an incumbent provider.  
  • And some communities are experimenting with affordability funds to support households that struggle to afford monthly service costs.  

One of our strong nonprofit partners in Maine (Island Institute) has developed a playbook for communities that emphasizes an effective community process without predetermining the outcome.  

All options should be on the table and partners should constantly adjust to support community needs and priorities.

Funders: now’s the time to stay at the table

As a community foundation with a small percentage of discretionary funding available, we initially did not think we could meaningfully support the work of expanding broadband. If we didn’t have the scale of funding to invest in infrastructure and it is really the role of government anyway, we wondered: what could we contribute?  

Other small and mid-size funders might feel the same, especially now that we know significant federal funding is coming for broadband investment. But now is the most important time for philanthropy to stay engaged. 

That Maine Broadband Coalition started as an informal, ad hoc network. Targeted investments in organizational capacity have turned a passionate and loosely affiliated group of stakeholders who care about the benefits of broadband into an active and growing coalition. 

The end result is a group that elevates the voices of all who depend on good internet in statewide policy discussions, supports communities through a train-the-trainer model, and acts as a convener to deepen our collective understanding of the connections between broadband and the community, economic, and climate resilience work we all care about. 

We can use whatever level of capacity we have to support community planning efforts, build the strength of organizations and coalitions doing the work, get ready for emerging opportunities, and raise our voices to advocate for better connectivity.  

Now is the time to stay at the table, and pull up a few extra chairs for others to jump in.

On April 15, please join us at the first RuralRISE Technology Summit, a virtual event that will include expert panels, real-world success cases, and networking — all focused on the critical development of broadband and the people and organizations driving the effort. 

Register for the Summit (April 15, 2-5 p.m. EST), and make sure to tune in for our fireside chat about the creative partnerships that are helping to close the digital divide in Maine!

Written by Guest Author · Categorized: Rural Matters · Tagged: Rural Entrepreneurship, Rural Infrastructure, Rural Prosperity, Rural Tech, RuralRISE Summit

Mar 30 2021

3 Crucial Areas of Focus for Rural Small Business

This guest post comes from David Ponraj, founder and CEO of Startup Space (startupspace.us), a social enterprise working with economic and community development organizations across the country to create digital connections to entrepreneurship resources while also providing data and systems for resource management.   

Why focus on small businesses? Is the impact worth the effort? What’s in it for economic development organizations? 

According to Brooking Institute, “rural small businesses have been found to generate wealth that stays in the community, build local leadership, and even contribute to population health” (read more). 

Investing in rural small businesses is good for the entire community, state, and nation. 

However, rural small businesses lack the tools and resources needed to build and grow. And the pandemic has not made it easy on our rural communities. 61% of rural small businesses felt unsupported by federal government policies, according to the “Principal Financial Well-Being Index” survey of business owners. 

If we want to bring back rural America, we need to focus on supporting rural small businesses. Some of the key areas of focus:

  1. Access to Capital
  2. Access to Broadband Internet
  3. Access to entrepreneurship resources

Let’s take a closer look at each of those three areas of focus.

Access to Capital

Small businesses everywhere struggle to find capital that can fit their needs in terms of speed, cost, and total amount of capital. 

A marble building facade reads The Union Banking & Trust Co.

Red tape, high interest rates, and lack of microloans force small businesses to turn to loan sharks and online lenders who engage in predatory lending. 

According to the Federal Reserve, 40% of rural counties lost community bank branches between 2012 and 2017. This sets the small businesses back even before they start. If entrepreneurship is about wealth creation, then access to right-sized capital is essential to creating value for the small business owner and enabling them to earn a living. 

Access to Broadband Internet

An example of support, one Southern Virginia town is leveraging creative partnerships united by its fiber network to boost the creation and development of its small businesses. 

In partnership with Microsoft TechSpark Virginia and with state support, Mid-Atlantic Broadband founded the SOVA Innovation Hub in 2020. This 15,000 square-foot nonprofit center for innovation and entrepreneurship features coworking and meeting space, entrepreneurship and digital skills training, and access to technology experts and experiences. 

Three women in masks are seen sitting inside the newly opened SOVA Innovation Hub space.

The partnership envisions the community hub will spark economic transformation in the small Virginia town of 8,142 that was once reliant on tobacco. The hub is the first new building to open in downtown South Boston, VA, in 40 years. 

The strategy for the South Boston ecosystem outlines six key goals:

  1. Connect entrepreneurship resources
  2. Support existing business growth and innovation
  3. Develop entrepreneurship training programs to nurture aspiring entrepreneurs
  4. Expedite access to capital
  5. Expedite broadband expansion
  6. Fund and facilitate implementation to ensure flexibility and sustainability

In addition to training programs, grant funds are being used to create a virtual hub with digital infrastructure through Startup Space. SOVA’s digital hub on the Startup Space platform enhances access to the nonprofit’s programs and resources, including a “resource compass” to help entrepreneurs navigate all of the resources available through regional support organizations. 

The digital hub makes entrepreneurship and business support services and resources available on-demand through the SOVA website or through an application that can be downloaded on any mobile device. 

It is the community’s “one-stop shop” for entrepreneurship and helps SOVA behind the scenes to organize the local ecosystem.  

To drive long-term development of the rural entrepreneurship ecosystem, the GO Virginia state board awarded the nonprofit partnership a major grant to support entrepreneurship training, youth entrepreneurship, and increasing access to capital. 

Access to broadband is fueling this innovation; creative partnerships are helping to realize its full potential to achieve economic growth. It’s a compelling point of reference for rural economies to develop strong entrepreneurial ecosystems (more on local strategies from Main Street America and the Brookings Institution). 

Access to Entrepreneurship Resources

Small businesses everywhere need access to the resource community to start and grow their businesses. We launched Startup Space in 2018 with the singular focus of better connecting small businesses to resources in the community. 

A graphic courtesy of Startup Space shows a man with white hair standing in a garage, with text reading "Unlock Opportunities. Create equitable access."

In rural communities, this problem is exacerbated by the fact that resources are often distant and the density of business services (for example, lawyers, accountants, and web developers) is sparse or located hundreds of miles over in an urban community. 

This creates a unique challenge for rural entrepreneurs who need the same support network as their urban counterparts to build a thriving business. 

We countered this by mapping the local ecosystem and broadening the radius to help rural small businesses easily find the resources they need. We also focus on giving select resources within the community a clear designation so the intended underserved entrepreneur can easily find dedicated resources and support. 

Technical assistance can also be hard to come by for rural entrepreneurs. By providing a virtual platform, we can bridge the divide and bring some of these resources right into the home of the small business owner. 

When technical assistance is combined with access to capital, small business success rates go up dramatically. 

Investing in What Rural Businesses Need

So what’s next for rural America? And what can your organization do to help support local businesses in these three key areas?

We are doing our rural small businesses and our nation a disservice by not recognizing the unique challenges and opportunities that exist in rural America and allocating appropriate resources to quickly address these challenges. 

Rural small businesses are the backbone of our rural economy and if we want a strong and vibrant economy, we need to invest in building out the infrastructure that rural communities need. (Read more about why rural America isn’t fully connected yet.)

This April, join us at the first RuralRISE Technology Summit, a virtual event including expert panels, real-world success cases, and networking — all focused on the critical development of broadband and its utilization in rural economic ecosystem strategies. 

Register for the Summit (April 15, 2-5 p.m. EST), followed by a social hour hosted by our team at Startup Space. 

About Startup Space
Startup Space is a leading community platform that helps connect entrepreneurs to resources in their communities while also providing data analytics and management systems for community builders. For more information, visit https://www.startupspace.us or contact us at media@startupspace.app. The podcast, “Breaking Down Barriers,” featuring entrepreneurial ecosystem builders, is available at: https://startupspace.captivate.fm

Written by Guest Author · Categorized: Rural Matters · Tagged: Rural Entrepreneurship, Rural Infrastructure, Rural Prosperity, Rural Tech, RuralRISE Summit

Copyright © 2023