REPORT: highlights entrepreneur trends across Appalachia communities

The economic development team at DRIVE has published a report on the state of entrepreneurship in Appalachia. This report is three years in the making, the result of a collaborative effort with Building Bridges 2 Careers (BB2C) and the Bucknell University Small Business Development Center (SBDC).

Amanda Craig-Bradley, Business Outreach Manager, evaluated entrepreneurial perceptions and resources across 14 communities in six states. The report compiles overarching trends across the region while also offering individualized insights to each community.

The goal of this report is to help government leaders and economic development teams identify opportunities to support the entrepreneurs around them. By sharing resources and insights, rural towns and counties across the United States can build each other up.  

“It’s easy to get stuck in your bubble and become hyperfocused on the problems in front of you,” says Craig-Bradley. “However, stepping out of your bubble allows you to see that other communities face similar challenges, but possibly solve things differently. Seeing this allows you to bring new ideas to your community and potentially make you a better problem-solver in the long run.”

By delving into the entrepreneurial ecosystem across different states, Craig-Bradley and her team were able to understand the overarching challenges facing Appalachia – and likely facing rural American communities as a whole. Here are a few key takeaways.

Entrepreneurs Lack Clear Pathways to Resources

One of the biggest pain points identified in the report is the disconnect between the entrepreneurial resources available and how business owners find them. Almost all of the 14 communities Craig-Bradley visited highlighted resources they offer to support entrepreneurs. These include local colleges, incubators, SBDC chapters, grants, and start-up pitch competitions. However, residents were unclear about how to access these resources or if they would be useful for their small businesses.

“Communities consistently asked for a single front door, a simple, visible, local place or person who could guide entrepreneurs toward appropriate support,” writes Craig-Bradley in her report. “When this exists, even informally, the entrepreneurial ecosystem becomes noticeably more accessible and functional.”  

This could be considered good news. Communities have resources; they just need to find ways to share them with residents who want to become business owners or advance in their careers.

Some Business Owners Struggle to Identify as Entrepreneurs

Another trend that could prevent people from taking advantage of local resources is the concept of entrepreneurship itself. Despite the fact that the communities Craig-Bradley visited had ample small businesses, she found that many people did not identify as entrepreneurs. There was a repeated belief that being a small-business owner was “not for people like me,” and that side hustles or home businesses weren’t considered scalable.  

“Entrepreneurship is something that is innate in many of us,” she says. “Whether you are eight years old with a lemonade stand or create stained glass windows to sell at craft fairs. Entrepreneurship is the backbone of rural communities and establishes local economies.”

Not only does this perception that entrepreneurial resources aren’t “for them” prevent residents from taking advantage of them, but it also limits overall business growth. People who take advantage of makerspaces, grants, and other programs often become advocates for these resources, encouraging others to use them. Furthermore, if people aren’t using programs, they are less likely to get renewed or receive funding.

A Physical Space Can Make a Big Difference

One solution to centralize entrepreneurship is to create physical hubs where small business owners and people with side hustles can meet with experts to discuss their future goals. These hubs would allow residents to meet in person and learn about various programs, making it easier for them to pick the ones that best meet their needs.

Craig-Bradley found that while many Appalachian communities have vacant storefronts that could serve as incubators or makerspaces, the towns and counties could be better served by incorporating entrepreneur support into existing service centers. For example, scheduling teaching classes in a library or hosting events at schools or community centers could be more effective because residents are more familiar with these meeting spaces.  

“One of the clearest insights across all communities is that staffing and programming matter far more than square footage,” writes Craig-Bradley. “A modest, well-staffed space with consistent workshops and mentorship reliably outperforms a large, underutilized building.”

This includes youth programming. Communities with strong career and technical education (CTE) programs, university partnerships, and programs specifically for kids and teens showed greater enthusiasm for entrepreneurship and a deeper understanding of how to access available resources.

Each Community Has Received a Feasibility Report

There are benefits to examining entrepreneurship at both the regional and individual levels. While national trends can help communities better understand why residents might not be taking advantage of their resources, individual reports can highlight specific pain points and opportunities within the county.  

“We hope this information will help communities either move projects forward or increase assistance to entrepreneurs,” says Craig-Bradley. “We also want to tell people working to bring opportunities to rural towns that other communities are facing the same problems they are.”

While the six states featured in the report centered on Appalachia, Craig-Bradley says these trends would likely be reflected nationwide. Any community can use these insights to evaluate their programs, how they promote them, and how they reach out to entrepreneurs who might not consider their side hustle or home business worth scaling just yet.

Partnerships Strengthen Our Communities

This report was developed through the Appalachian Regional Initiative for Stronger Economies (ARISE) grant program and supported by DRIVE. Strengthening regional partnerships has always been central to DRIVE’s mission, and that commitment continues through ongoing collaboration with nonprofits, government agencies, and civic organizations that support small business development across our five-county region.

Every business is unique and requires the right tools and resources to succeed. By working together, DRIVE and its partners help entrepreneurs grow into successful business owners. Contact us to learn more about available support or to explore partnership opportunities.