Research and Insights on Why Millennials and Gen Z Will Drive Small Town Entrepreneurship

Considering that the Internet began showing its true potential for anywhere access, innovative business models, and infrastructure around the year 2000, why did it take a pandemic to spark a remote work trend? For years, entrepreneurs have been developing cloud-based technologies and services that allow for anytime, anywhere access. So why has remote work become such a hot topic today, with employers calling employees back to the office while employees prefer to work remotely? This mix of technology and the desire for a better lifestyle is expected to drive a rise in entrepreneurship in small towns. Why? It’s a mix of generational changes, lifestyle preferences, and restlessness.

One major generational shift affecting Millennials and Gen Z is their use of technology and social media and its impact on communication skills. According to an article on Flexjobs, these generations communicate differently compared to Gen X or Baby Boomers. They have moved from in-person communication to email, text, and emojis. This change affects workplace communication, company culture, and loyalty, adding to the restlessness. With a focus on enjoying life and travel, these generations are both wonderfully disruptive and on the move.

From 2010-2019, small towns in the West saw greater population growth than large Western cities, with 13.3% growth in small towns versus 9.1% in large cities, according to the U.S. Census Bureau. In the South, small towns grew by 6.7%, slightly slower than the 11.8% growth in large cities. The Census defines small towns as areas with 5,000 or fewer residents and big cities as having 50,000 or more. Midsize cities (5,000-10,000 people) also grew in every region except the Northeast. A Gallup poll at the end of 2020 found that nearly half of respondents preferred living in a small town or rural area, a nine percent increase from 2018. Research supports this trend towards small towns.

According to Small Biz Survival, several trends in 2022 make moving to a small town and starting a business a great opportunity. Here are some key benefits of launching a small business in a small town.

Small Town Lifestyle: Imagine walking your dog in a charming small town, greeting familiar faces, and enjoying a healthy drink at the local cafe. With remote or hybrid work options, it’s even better.

Build Your Local Brand Faster: Being a bigger fish in a smaller pond can be advantageous. Your entrepreneurial, branding, or marketing skills can give you an edge in a smaller market, leveraging your knowledge, experience, and confidence.

Small Towns Want Growth: Small towns are under pressure to provide more due to population growth. As long as you are not overly disruptive, learn to blend in with the locals, and provide jobs, you will be welcomed.

Local Customer Base: In a small town, it’s easier to identify and reach local customers, often through word-of-mouth marketing.

Build Local Network Faster: In a smaller town, you can quickly build your network. Connect with local business leaders, investors, and entrepreneurs, and integrate into their circle. Building relationships with one or two leaders can help you grow within the community.

Less Competition: If you identify a need in the local town and start a business to meet that need, you might have little to no competition. Find out what’s missing and see if it can become a thriving business. Alternatively, serve national clients through remote technologies.

Local Employees Are Loyal: If you build a company with strong small-town values and culture, you can attract local employees who, if treated well, will remain loyal and grow with your company. With fewer employers in small towns, there’s a higher chance of building a dedicated team. You can also recruit outside talent to your unique small-town company, as others might be drawn to the same appealing lifestyle that attracted you.

Leave a Reply

Your email address will not be published. Required fields are marked *