Rural Small Business Owners Head to Washington to Champion Policies for Economic Growth
Goldman Sachs 10,000 Small Businesses Voices recently brought 60 small business owners from rural communities to Washington, D.C., to deliver a powerful message: they are ready to expand but require congressional action to overcome persistent challenges. Representing 16 different states, these owners were joined by Small Business Administration (SBA) Administrator Kelly Loeffler, policymakers, and lawmakers. Their mission was clear: engage in over 35 meetings on Capitol Hill to present actionable policy proposals aimed at fostering growth, innovation, and economic opportunity for rural entrepreneurs.
Rural small businesses are the backbone of their communities, accounting for over 84% of establishments in rural counties and employing more than half of the local workforce. A recent survey conducted by Goldman Sachs 10,000 Small Voices found that 74% of rural small owners have plans to expand, with 45% expecting to create new jobs in 2025. However, these face substantial challenges that must be addressed to unlock their full potential.
Key Survey Findings:
The survey revealed several pressing concerns among rural small business owners:
- 76% are worried about their ability to access capital, which is essential for expansion and sustainability.
- 66% believe that simplifying the tax code would significantly benefit small businesses.
- 63% feel that excessive regulatory red tape is hindering their operations.
- 54% want the federal government to take action to combat inflation.
- 38% say that increasing access to capital would facilitate their business growth.
- 38% also emphasize the need for support in offering competitive benefits to employees.
David Solomon, Chairman and CEO of Goldman Sachs, stressed the importance of addressing these issues: “Rural small are engines of economic growth and job creation. It is critical for policymakers in Washington to understand the challenges they face. If we can create a favorable operating environment and policy landscape, small will thrive, and communities across America will benefit.”
Challenges Unique to Rural Small Businesses
The survey underscored several challenges that are particularly acute for rural small businesses:
Workforce Development:
- 70% of rural small business owners struggle to attract workers to live and work in their communities, compared to 42% in suburban areas and 45% in urban regions.
- 47% of rural cite a lack of affordable childcare as a major obstacle to attracting workers, significantly higher than suburban (24%) and urban (33%) businesses.
Innovation & Opportunity:
- Only 52% of rural small businesses utilize artificial intelligence (AI), compared to 63% of suburban and 61% of urban businesses, highlighting a gap in access to modern technology.
Jenny Steffensmeier, President of Steffensmeier Welding and Manufacturing in Pilot Grove, Iowa, and a member of the Goldman Sachs 10,000 Small Voices National Leadership Council, emphasized the need for tailored solutions: “Small are the backbone of America’s economy, and in rural America, we’re also the community’s heartbeat. While many small face similar challenges, the solutions can’t be one-size-fits-all. From the Farm Bill to expiring tax provisions and far-reaching regulations, Washington has ample opportunity to help unleash rural small growth in 2025.”
Goldman Sachs’ Commitment to Rural Businesses
In 2023, Goldman Sachs 10,000 Small Businesses announced a $100 million investment in rural communities across America. As part of this initiative, the program has already launched leading education programs in ten states with significant rural populations and facilitated $37 million in funding for Community Development Financial Institutions (CDFIs). The goal is to expand the program to 20 states over the next five years.
This recent gathering in Washington, D.C., serves as an extension of Goldman Sachs 10,000 Small Voices’ ongoing efforts to highlight the issues affecting rural communities and advocate for policies that enhance economic vitality nationwide.
The Role of Advocacy and Awareness
In addition to policymakers and business leaders, radio and television personality Bobby Bones lent his support to the rural small owners. Known for hosting the nationally syndicated radio program The Bobby Bones Show, Bones, a native of Mountain Pine, Arkansas (population 764), shared insights on the power of advocacy. His participation underscored the importance of elevating rural voices in national discussions about economic policy.
Policy Recommendations for Rural Small Business Growth
Given the insights from the survey and discussions on Capitol Hill, rural small business owners presented several key policy recommendations to lawmakers:
- Enhancing Access to Capital
- Expanding loan programs specifically for rural
- Increasing funding for Community Development Financial Institutions (CDFIs) to provide more financial resources to small businesses.
- Tax Code Simplification
- Reducing tax compliance burdens to free up time and resources for business growth.
- Offering more tax incentives tailored to rural
- Reducing Regulatory Barriers
- Streamlining federal and state regulations that disproportionately impact small businesses.
- Establishing a regulatory review board to assess the impact of new policies on rural entrepreneurs.
- Workforce Development Support
- Investing in job training programs to upskill local workers.
- Increasing support for affordable childcare to enable more individuals to enter the workforce.
- Encouraging Innovation & Technology Adoption
- Providing grants and incentives for rural small to integrate AI and other advanced technologies.
- Expanding broadband access to bridge the digital divide in rural areas.
The Goldman Sachs 10,000 Small Voices initiative has once again provided rural entrepreneurs with a platform to advocate for policies that support their growth and success. The voices of these small owners are crucial in shaping policies that recognize the unique needs of rural America. With continued engagement and advocacy, there is a strong opportunity to create a more supportive and dynamic environment for rural small to thrive in 2025 and beyond.
