Boomtown Institute

OUR OPINION: Trends for success in rural U.S.

The Grand Cities area numbers some 65,000 people, so we're just over the "agurb" limit. Still, Jack Schultz's agurb trends are worth watching, because what works for the small towns Schultz tracks almost certainly will work here, too.

Schultz is the CEO of Agracel, Inc., an Effingham, Ill-based industrial development firm that specializes in agurbs. We'll get to what an agurb is in a minute; but first, readers should know that Schultz also is one of the most upbeat and exciting writers in rural America today.

An agurb is Schultz's name for a small town that's tied to farming, but is growing despite the odds. On his Web log, bootmtownusa.blogspot.com, Schultz profiles the agurbs he visits - and he visits many dozens of them a year.

By his lights, small-town America is undergoing a renaissance of sorts. Town after town in North Dakota and elsewhere is harnessing an entrepreneurial drive that is building businesses and pulling in money from afar.

Bruce Gjovig, director of the Center for Innovation at UND, is a Schultz fan and sent along a Schultz Top 10 list, an edited version of which follows.

"How will rural communities survive and thrive in the future?" Schultz asked in a recent posting.

"Here are my top 10 trends for the agurbs that I'll be watching in 2006:

"1. Entrepreneurs - You can't have enough of them. There are some interesting ones doing some incredible things in the agurbs. Many new entrepreneurs will be setting up new businesses in 2006.

"2. Arts and Culture - There are some great examples of a few small towns that are making themselves incredibly attractive for the development of artists. They are on the forefront of creating special 'senses of place' in their communities.

"3. Downtowns - Again, it's creating that special 'sense of place,' usually in the downtowns, that are driving some small towns to new heights. You can't create that special historical feel in a new development or big box.

"4. Recreational Land - It is becoming more important and valuable than rich agricultural land in many areas. If it has water or you can build a lake on it, it's a goldmine!

"5. Brain Banks - Increasingly, towns and regions are reaching out to their brain banks of alumni who grew up or went to school in the community.

"6. Regionalism - Progressive places are realizing that artificial borders set by surveyors in the 19th century are not how people are running businesses or deciding where to live. They are focused more regionally in job creation and retention.

"7. Clusters - It's a lot like regionalism. The synergies of working together and developing businesses regionally are major waves of the future.

"8. Community Foundations - The transfer of wealth that will take place in the next decade is unprecedented. Communities are realizing that if they can capture only 2 percent or 5 percent of that transfer, they can transform their communities.

"9. Internet - This medium is finally having the impact that was predicted of it in the late 1990s. Virtually every town that I visit has one success story emerging of a business that is booming based upon the Internet. A recent study showed that 750,000 Americans are making their livings on eBay, an industry that didn't even exist a decade ago.

"10. Homesourcing - It's tied to broadband availability in rural America. Increasingly, companies are setting up call centers and outsourcing work to rural households."

Hmm ... downtown; recreational land; regionalism; clusters; entrepreneurs; civic foundation ...

Sound like any river cities you know?

Tom Dennis for the Herald