Witnesses Highlight Unique Challenges to Small Businesses in Rural Communities

Statement

Today, the House Committee on Small Business Subcommittee on Rural Development, Agriculture, Trade, and Entrepreneurship heard from witnesses on challenges to small business recovery from COVID-19 in rural communities.

"We have held multiple hearings on the major challenges experienced by rural small businesses, including inadequate access to broadband, fewer methods to access capital; higher health care costs with limited access to providers; increased child care expenses; and workforce shortages…. We know that small towns and rural communities struggle with these issues every single day, but the coronavirus pandemic has continued to bring these issues to the forefront of our nation's attention," said Ranking Member John Joyce (R-PA).

Access to Tech, Child Care is Vital for Rural Small Business Growth

"COVID-19 and the ongoing pandemic poses an unprecedented new set of challenges for small businesses as they strive toward recovery… The disruption has also created a host of new business opportunities and industries …[in which] small and local businesses can play an important role and win against their multinational competitors. We have seen the creativity of the American entrepreneurs in the way they prepare and deliver food, create and provide education and training and using technology and video in ways we never thought possible," said Mr. Jason Duff, Founder, Small Nation, in Bellefontaine, OH. "We've also seen how businesses can step up and solve important health and safety needs during the pandemic. From creating masks, shields and much needed access to PPE, businesses of all sizes are responding to serve."

"LINK administered a survey to the essential organizations to identify the community need regarding child care… The need was identified at 53 percent or 86 children would need emergency childcare if community spread created a surge on Grinnell's health care organizations," said Mr. Chad Nath, Executive Director, LINK Grinnell Inc., in Grinnell, IA. "Throughout this pandemic, LINK has been able to provide child care to support local business workers; most notably, first responders, health care workers, and the foodservice industry."

"The recent surge in business creates a whole new set of issues for a small business like ours. When you go from no one in the building, to a surge of customers, safety becomes a big issue," said Mr. Jeremy Ketelsen, Vice President, Ketelsen RV, in Hiawatha, IA. "Looking ahead to the rest of the year, we are now faced with supply chain issues."

"…We believe that for rural communities to thrive, they must participate in the digital economy," said Mr. Mark Rembert, Head of the Rural Innovation Network, Center on Rural Innovation, in Hartland, VT. "Just like their metro counterparts, rural startups need access to equity based risk capital, deep mentor and advisor networks that can connect them to a national or global customer base, incubator and accelerator programs to get the support they need to raise capital and grow, and a trained digital workforce to draw upon."

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