The Securities and Exchange Commission’s (SEC’s) Small Business Capital Formation Advisory Committee announced Wednesday it would explore ways to foster entrepreneurship and capital access in rural and under-resourced areas when it meets virtually on Nov. 16.
The meeting will feature a presentation by Alicia Robb, Ph.D., author of a report titled “Rural Entrepreneurship and the Challenges Accessing Financial Capital, focusing on how entrepreneurs in rural areas finance their businesses and the challenges they face in getting obtaining capital. Robb will also discuss funding female and minority entrepreneurs in rural areas.
According to the U.S. Census Bureau, approximately 15 percent of businesses are located in rural areas. However, businesses in rural areas face obstacles in obtaining funding to start or grow their businesses, Robb’s report said.
Increasing the entrepreneurship ecosystem in rural areas would benefit rural residents, the reports said.
“Entrepreneurship plays an integral role in both job creation and wealth creation, so it is a more frequent avenue being pursued by rural communities and local governments for economic development in these areas,” the report said. “Yet, because rural areas are more remote to markets, infrastructure, and other resources, such as human capital and financial capital, starting businesses and scaling businesses in rural areas can be especially challenging. However, since the benefits of having a thriving entrepreneurial ecosystem are many to these rural communities, increased attention is being paid to how communities can proactively build more dynamic ecosystems in their areas to foster entrepreneurship, mobilize investment, and create jobs and wealth in their communities.”
The committee will also hear from Adair Morse, Deputy Assistance Secretary of Capital Access, Office of Domestic Finance, U.S. Department of Treasury, with an update on the State Small Business Credit Initiative (SSBCI) and the $10 billion it will provide to fund state, territory and tribal government small business credit support and investment programs.
Following the presentations, committee members will share experiences and perspectives on facilitating entrepreneurship and mobilizing capital investment in rural and under-resourced areas.