The Importance of Rural Small Businesses

Greetings,

Across North Dakota, rural businesses continue to play an essential role in the communities they serve. While economic development conversations often focus on attracting new industries and investment, the long-term strength of many communities also depends on something much closer to home: locally owned small businesses.

According to the United Health Foundation’s America’s Health Rankings, nearly 40% of the state’s population lives in rural areas. In many of these communities, a small business is much more than a storefront. It may be the only grocery store in town, the local childcare provider, the repair shop that keeps farms and businesses operating, or the restaurant that serves as a gathering place for neighbors and visitors alike.

The Importance of Rural Small Businesses

The impact of these businesses extends far beyond the products and services they provide. Small businesses create jobs, generate local tax revenue, support community organizations, and help keep dollars circulating within local economies. According to the U.S. Small Business Administration, small businesses in North Dakota support more than 197,000 jobs, accounting for nearly 58% of employment across the state. In rural communities, those businesses are often critical to maintaining both economic vitality and quality of life.

Through our work with small business owners and entrepreneurs across the state, we see firsthand the opportunities and challenges rural businesses are navigating today. Workforce shortages continue to affect employers in many communities. Access to childcare, housing, and specialized labor remains a concern in some areas. Business owners are also planning for succession, responding to changing customer expectations, and finding new ways to use technology and online tools to strengthen their operations.

Yet what stands out most is not the challenges themselves. It is the determination behind the people working to solve them.

Time and again, we work with business owners who identify opportunities where others might see obstacles. They are finding creative ways to recruit and retain employees, expanding into new markets through e-commerce, investing in technology to improve operations, and creating businesses that address important needs within their communities. Their willingness to adapt and keep moving forward continues to strengthen rural economies across the state.

We also see the significant impact a single business can have on an entire community. In larger population centers, residents often have multiple options when seeking goods and services. In many rural areas, however, one successful business can make the difference between having access to essential services locally or traveling long distances to meet those needs. The success of a childcare center, grocery store, healthcare provider, manufacturer, or main street retailer often creates ripple effects that benefit families, workers, and other businesses throughout the region.

Supporting Rural Small Business Owners and Entrepreneurs

Supporting rural small business owners and entrepreneurs is central to our mission. Through our statewide advising network, ND SBDC advisors work with clients on business planning, financial analysis, capital access, growth strategies, succession planning, and many other areas that support long-term success.

So far in 2026, the ND SBDC has provided advising and assistance to nearly 700 clients across the state. Of those clients, 483 are located in rural communities, representing nearly 70% of the clients served this year. These numbers reflect the strong entrepreneurial activity taking place in rural areas and the ongoing need for professional business advising in communities of all sizes.

We continue to adapt our service delivery to ensure small business owners and entrepreneurs can access high-quality advising regardless of where they are located. Whether through in-person meetings, virtual advising, or partnerships with local organizations, our goal is to meet clients where they are and help them take the next step with confidence.

The future of rural communities will continue to be shaped by the small business owners and entrepreneurs willing to invest their time, talent, and resources into the places they call home. Their businesses create opportunities, strengthen local economies, and help ensure that communities remain vibrant places to live, work, and raise a family.

We are grateful for the community leaders, economic development partners, lenders, elected officials, and stakeholders who support these efforts. The continued success of rural small businesses depends on strong partnerships and a shared commitment to helping local businesses thrive.

Together, we can continue building strong rural communities and creating opportunities for future generations of North Dakotans. If you’re heading out on a road-trip this summer, be sure to check out the small towns on your course and see what kinds of unique offerings you might find – happy summer!

Tiffany Ford, State Director,
and all the Staff of the ND Small Business Development Network