Local broadband providers offer greater access to achieve economic prosperity
Rural economies and communities benefit from access to fiber broadband, boosting entrepreneurship, income, and business investments. This occurs particularly when local providers are involved, according to a first-of-its-kind peer-reviewed study by the nonprofit Center on Rural Innovation (CORI). r
Titled “Beyond Connectivity: The Role of Broadband in Rural Economic Growth and Resilience”, the research study compared economic data from three types of rural communities:
1. underserved communities with a lack of broadband or limited internet access,
2. communities with access to basic broadband services,
3. and communities served by smaller fiber broadband providers offering access to experiences beyond fast internet.
The study which included three case studies in Beltrami County, Minnesota, Bulloch County, Georgia and Gallatin County, Montana found that fiber broadband had a greater economic impact in better-connected communities that offered access to additional services—that users could leverage. This contrasts with comparable underserved communities that experience little to no economic growth or benefit.
The cloud and managed services company Calix, Inc., The Rural Broadband Association, and the Fiber Broadband Association sponsored the study. Researchers analyzed data from 2020-2022, primarily post-pandemic.
“Broadband is the equalizer in today’s economy. We have known that intuitively for years but seeing the impact in real numbers is reaffirming and provides hope for rural economies as unprecedented funding from the bipartisan Infrastructure Investment and Jobs Act rolls out to small communities across the country,” said Matt Dunne, founder and executive director, CORI.
Rural counties with high broadband adoption rates of over 80% bolstered the local entrepreneurial ecosystem, gaining significant advantages over those with low usage, including:
213% higher business growth in rural counties with high broadband use and seeing more businesses opening, while similar counties with low broadband utilization are losing businesses,
10% higher self-employment growth attributed to several factors such as lower barriers to starting a business, connecting business owners to global markets and essential resources, enabling entrepreneurs to conduct market research, and more. Rural communities with higher broadband adoption rates have significantly more business startups by rural entrepreneurs.
18% higher per capita income growth in counties in the high broadband group from 2020-2022, equating to an increase of nearly $500 per person each year on average for county residents.
44% higher GDP growth for communities with high broadband use contributes to an environment that fosters local rural businesses, leading to a chain reaction of growth and innovation like a stronger and more dynamic economy.
The study strongly suggests that broadband is an effective tool for economic development, supporting the business community. Greater access to broadband internet contributes to a sense of community, encourages an entrepreneurial mindset, and nurtures entrepreneurial talent—helping local economies in Rural America.
The study’s author, economist Amanda Weinstein, Ph.D., director of research at CORI, summed up the study’s findings.
“Notably, we find evidence that existing residents are the primary beneficiaries of these economic gains (rather than new arrivals). These findings highlight the critical importance of both expanding broadband access and fostering its effective utilization to drive economic growth, enhance resilience, and build a more prosperous future for rural communities.”
