Opportunity in Rural

Sarah LaRosh
Don Macke

Co-Founder, Center for Rural Entrepreneurship; Senior Vice

President, LOCUS Impact Investing
don@e2mail.org
(402) 323-7336

Don Macke is Co-Founder and Director of the Entrepreneurial

Communities solution area. Through this work, Don helps
communities and regions throughout North America grow
entrepreneur-focused economic development strategies. He works
with a group of strategic partners across the country to deliver
customized economic development solutions. Don is also active in the
Community Development Philanthropy solution area, and conducted
the first statewide Transfer of Wealth™ study in Nebraska in 2002.
Don has nearly 40 years of community economic development and
policy experience.
Taking Stock – The Power of Assessment

Whether a community or a region is successful over time – or not –

depends upon the commitment and choices of its leaders and
people, and the investments they make in their development. As
Deepak Chopra says, “When you make a choice, you change the
future.” Making the right development choices is a prerequisite for
achieving community and regional prosperity. The best way to
make the right development decisions is to commit to a thoughtful
and robust assessment of your region’s opportunities. By taking the
time to discover and better understand your region’s genuine
development opportunities, you will make smarter investments
and enhance your region’s potential for greater prosperity.

This Development Opportunity Profile is a start on a pathway to

prosperity. But, it is only a start. It reflects one view of your region,
based on secondary data. We challenge you to build on this work,
draw on your own knowledge of the region and its assets, and
create a deeper understanding of your unique development
opportunities. Then use this understanding to craft and implement
a smart development game plan. We hope this Development
Opportunity Profile is helpful and contributes to your future
development success.
Asking the Right Questions

1. What is the regional context for your place?

2. What are the demographic trends in your place?

3. How is your economy doing in terms of job creation?

4. How is your economy doing in terms of income generation?

5. What is driving your economy?

The first section of this Profile provides an historical
overview of your economy as a whole:
• The regional context
• Population trends
• Employment trends
• Personal income trends
• Economic drivers

The second section delves more deeply into the business or entrepreneurial
economy, describing general business ownership trends and specific
entrepreneurial attributes of your region. In the final section, we provide a
summary of key development opportunities for your county as well as some
identified development challenges.
Regional Context
Republic County is located in extreme north central Kansas on the Nebraska border. This is the “in between”
country bounded by the I-70 and I-80 corridors south and north. Republic County is home to eight
incorporated communities and four unincorporated communities reflective of a Great Plains County heavily
settled during the Homestead period and then thinning out over time as agriculture industrialized. The county
reached peak population of 19,002 in 1890 and fell to only 4,926 residents in 2017 representing a 74%
depopulation rate.
Center for Rural Affairs – Republic County
• Recommendation 1 – Population
• Recommendation 2 – Agriculture
• Recommendation 3 – Retirees
• Recommendation 4 – Commuters
• Recommendation 5 - Spending Capture
• Recommendation 6 – Local Entrepreneurs
• Recommendation 7 – Regional Development
Reccomendation 1– Population
• Your county population is now just under 5,000 residents. Your county population peaked
with the 1890 Census at 19,002 residents. You are aging and depopulation is an issue
(refer to Figures 2 through 5, pgs 5 and 6). You have reached a critical tipping point as
you now have more deaths than births annually or negative natural population change
(Figure 3). This pattern coupled with net-outmigration is contributing to the loss of about
81 residents a year (Figure 3).
• Esri is projecting that the decline rate for 2017 through 2022 is -0.38% per year. Pursuing
a development strategy that both creates economic opportunities and attracts (as well as
retains) residents is critically important. Focusing on the dual strategies of local
entrepreneurship and people attraction is paramount.
• We recommend that you focus on two all-important age cohorts – 30-year-olds and
retiring Baby Boomers. Both groups are actively moving back into rural communities.
There is some encouraging news in Figure 5 (pg 6) indicating a net gain of nearly 11%
among 30- to 34-year-olds. Building on this positive trend is encouraged. Developing
both cohorts through retention and attraction strategies will rebuild your demography
and strengthen your economy
Recommendation 3 - Retirees
• Recommendation 3 – Retirees. Retirees are the single largest economic driver (based on
household earnings and spending) for your community. Over the next three decades,
approximately 10,000 Baby Boomers will be retiring each day in America. For those
Boomers that are more active and affluent, many will be relocating in retirement. Of
these, there is a significant trend of moving from urban to rural communities. These
retirees are seeking value and an easier life (e.g., less crime, congestion, etc.).
• We recommend working with your health care sector and entrepreneurs to learn more
about this massively growing development opportunity. Boomers want to age in place,
and they are looking for services that allow them to stay independent as long as possible.
Capturing this retiree spending – estimated at nearly 72 million in Republic County in
2015 (Refer to page 9 for more detail.) – can grow a stronger local economy.
• Retirees are key to local health care (the 5th largest generator of county household
earnings in 2015). However, Figure 5 (pg 6) indicates fairly significant net losses in the 50-
54 (-6.4%) and 55-64 age cohorts (-10.8%). Focusing on retaining and attracting early
Boomer retirees is strongly recommended. Focusing on this generational group will also
position your community for sustaining locally available health care services.
 Recommendation 4 - Commuters

2002
2014
• Work in RP, live outside – 444
• Work in RP live outside – 674
• Live and work in RP – 1,380
• Live and work in RP – 1,182
• Live in RP, work outside – 885
• Live in RP work outside – 1,208
Commuters…
• Your fourth largest driver of economic activity are people who live in your county but work
outside of the county. You have two development opportunities with this “commuters group.”
First, you can grow the number of people who call Republic County home but are willing to drive
down the road for work. Focusing on this opportunity can not only increase local economic
activity, but contribute to population stabilization and growth. Second, as commuters age and
move through life stages their desire to “get off the road” increases.
• As commuters move into their 30s, 40s, and 50s, many are ready to bring their skills and
experience home if there are jobs or business opportunities. This second opportunity can
particularly be matched up with aging local business owners increasing the odds for successful
local business transition.
• In 2015, resident commuters (living in Republic County but working outside of the county)
generated nearly $17 million in household earnings (Figure 10, pg 9). This part of your economy
grew by nearly 68% between 2001 and 2015. See our Commuter Profile pulled from Census data
for additional information.
• Census estimates that 1,145 workers live and work in your county. Another 554 workers live
outside of the county and commute into the county for work. Another 1,031 workers live in the
county but commute outside of the county for work. Your community is part of a regional
economy and society offering greater diversity and development opportunities.
Recommendation 6 – Local Entrepreneurs
• Figures 12 through 18 profile your entrepreneurial community. There are
some positive indicators of business development. Self-employment, the
leading edge of start-up entrepreneurship, is elevated (Figure 14)
suggesting development opportunity.
• Figure 15 provides long-term trends with both nonfarm proprietorship
employment and net income displaying a strong trendline. Some of this
growth is due to the strong agricultural economy in recent years. Higher
farm spending impacts nonfarm, main street businesses.
• There are corresponding positive indicators to be found in both Stage 1 and
Stage 2 Ventures (Figures 16 and 17, pgs 16 and 17). Your commitment as a
NetWork Kansas E-Community gives you strategy and tools to foster more
and better entrepreneurship. Growing successful local entrepreneurs
should be the foundation of your development strategy.
Entrepreneurship Programs
• Small Business Courses – LRS Consulting – RCED uses E-Community marketing funds to host free small
business courses in the spring and fall since 2016 when Concordia’s NCK SBDC office moved to Manhattan.
Linda Sutton-Nutsch, their former director now teaches the courses locally. Over 20 individuals and
businesses have attended from RP. Also collaborates with Cloud Corp to allow cross over for classes.
• *Revolving Loan Consulting Incentive – RCED using our own funding to provide a cost share for businesses
work with LRS Consulting to prepare their revolving loan application. Will reimburse ½ the cost up to $500
per business if they apply to the revolving loan fund. Typical consultation has been below $250 total.
• Jon Schallert Destination Bootcamp – RCED provided seven E-Community scholarships for the second
Community Reinvention Program to attend in March and May. Previous group was funded by a grant. In total
12 businesses have attended from the county: 6 – Belleville, 4 – Scandia, and 2 - Courtland.
• Economic Gardening Program – Fisher Rocks received a scholarship in 2017 from Network Kansas to
participate in this 2nd stage business program.
• Youth Entrepreneurship Challenge – RCED awarded $3,000 from E-Community loan funds for prize money
the last two years in local business plan competition. In two years we have had 97 students from 41 teams
from both junior and senior high schools have competed with 4 teams qualifying and one state finalist at the
State YEC.
Discussion

What are some things you agree with

from the reports?

(In terms of opportunities)

Discussion

What things do you not agree with from the

report?
Discussion

How could this information benefit your

city/organization/business/school etc.?