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To assess development potential of small business, this research examines the age and size characteristics of nonmetropolitan firms and the contribution of business ‘births,’‘deaths,’ expansions, and contractions to job growth. Analysis of data derived from the federal‐state unemployment insurance program in Georgia indicates that firms employing fewer than 100 workers account for 44.3 percent of private sector nonfarm employment in nonmetropolitan counties. Overall, the mix of small and large firms remained quite stable over the five year study period. The dynamics of job creation and loss differed dramatically by enterprise size and manufacturing/nonmanufacturing sector. Three segments of the business population contributed most to rural job growth: very small continuing firms, large manufacturing establishments, and non‐manufacturing businesses owned by large enterprises. The paper concludes with a discussion of economic development policies that may enable rural communities to capitalize on these business demographic trends.
Rebecca Winders (Sat,) studied this question.