Managerial Inputs and the Growth of Rural Small Firms

Abstract Growth of rural small firms is influenced by education and work effort of owner or manager, and by degree of technology adoption and planning. Results are based on analysis of data from a small business survey in twenty‐five rural Georgia counties. Employment growth in a sample of manufacturing, sales, and service firms is examined. Independent firms, sole proprietorships, and firms owned by women are found to have significantly lower‐than‐average growth rates. The study confirms earlier findings that firm growth is negatively related to firm size and age. Implications for small business assistance programs are discussed.