Rural Women Entrepreneurs Drive Growth and Jobs, WVU Study Finds

Rural women entrepreneurs, though representing a relatively small share of business owners in the United States, have a disproportionately strong impact on local economies, according to new research from West Virginia University and the University of Maine.

The study analyzed the situation of 1,618 rural counties between 2011 and 2019, looking to understand what influences the self-employment of women and their entrepreneurial success. The study, led by Heather Stephens, director of WVU Regional Research Institute, and Xiaoyin Li, postdoctoral fellow, and Jason S. Entsminger, University of Maine, shows not only that rural women entrepreneurs generate income but also that they play a role in the wider economic development.

The study revealed that the self-employment rates of women in rural areas had a positive association with the growth of wage-and-salary employment, indicating that self-employment has benefits beyond the individual business. “Employment decisions by rural women are understudied relative to those of urban women, as survey data have few observations in rural areas”, Heather Stephens said.

One of the most significant findings involves child care access, which plays a critical role in enabling rural women to start and scale businesses. Xiaoyin Li explained, “The most surprising thing that we found is the different roles of child care access in more rural communities as opposed to urban communities or rural communities close to urban areas,” noting that reliable care provides flexibility for business development in isolated regions.

Key Highlights

• Rural women entrepreneurs empower local jobs and wage growth
• Child care access enables flexibility for rural business growth
• Financial access, education, and networks strengthen rural ecosystems significantly

Many rural communities also cited access to capital and financial institutions as a critical constraint, especially given the recent bank closures and resulting decrease in financial services. The study also identified areas where financial infrastructure is found to be robust along with educational and community-based systems are likely to have a positive influence in successful entrepreneurship, as it assists in developing skills, providing funding, and accessing mentors for women.

The results of these studies have important implications for economic development in the rural areas and especially for states such as West Virginia where small business is the lifeblood of rural communities. Enabling rural women entrepreneurs to access child care facilities, avail financial assistance, provide education and networking within the community can help in building the resilience of rural communities, provide employment and boost the economic strength of the community.

While WVU and its partners continue to pursue training efforts to support entrepreneurship ecosystem development, researchers believe their efforts will contribute to the creation of inclusive systems to help rural women build their skills, improve community vitality and stimulate sustainable economic growth throughout rural America.

The study emphasizes, rural women entrepreneurs are not only as business owners but also they are the great force of change in the region. Policies could open up huge economic potential by tackling structural barriers like limited child care, access to capital and unequal educational resources. The researchers stress that investment in rural entrepreneurial ecosystems provides a real opportunity to curb population loss, improve local markets, and rural communities' long-term sustainability in the United States.