MORGANTOWN, W.Va. — Rural women entrepreneurs may make up a relatively small share of business owners across the United States, but new research from West Virginia University suggests their impact on local economies is far greater than many communities realize.
The study, conducted by researchers at West Virginia University and the University of Maine, found that rural women entrepreneurs contribute significantly to economic growth and job creation in rural communities. The findings challenge long-held assumptions about entrepreneurship in rural America and highlight the important role women-owned businesses play in strengthening local economies.
Researchers say the results should encourage community leaders, economic development officials, policymakers, and business organizations to invest more heavily in programs that support rural women entrepreneurs.
The study was led by Heather Stephens, director of the West Virginia University Regional Research Institute, alongside Xiaoyin Li, a postdoctoral fellow at WVU, and Jason S. Entsminger, assistant professor of entrepreneurship and innovation at the University of Maine.
Their research examined conditions in 1,618 rural counties across the United States from 2011 to 2019 to better understand the factors influencing female self-employment and entrepreneurial success in rural communities.
Their findings could have important implications for West Virginia and other states where rural communities continue to search for new strategies to create jobs, retain residents, and build stronger local economies.
Rural women entrepreneurs create broader economic benefits
One of the study’s most notable findings is that higher rates of self-employment among rural women entrepreneurs are linked to stronger wage-and-salary employment growth.
In other words, Stephens says, when more women in rural communities start businesses, the benefits often extend beyond the entrepreneurs themselves.
New businesses can generate local spending, create jobs, support other small businesses, and strengthen community resilience. Rather than serving only as a source of individual income, entrepreneurship among rural women can become an important driver of economic development.
Stephens said the research helps fill a significant gap in understanding rural entrepreneurship.
“Rural women’s employment decisions are understudied compared with those of women in cities, in part because survey data have limited observations in rural areas,” she explained.
National studies often focus heavily on urban populations, where larger sample sizes make research easier to conduct. At the same time, many previous entrepreneurship studies have concentrated on men because men have historically reported higher rates of self-employment.
As a result, the unique experiences and challenges faced by rural women entrepreneurs have often been overlooked.
Researchers believe that understanding these challenges is essential to creating policies and programs that encourage entrepreneurship among women in rural communities.
Child care emerges as a critical resource
Among the study’s findings, access to child care stood out as one of the most important factors in the success of rural women entrepreneurs.
While previous studies have shown that child care often helps women enter traditional employment in urban areas, researchers found a somewhat different pattern in remote rural communities.
For women living in more isolated regions, access to reliable child care can provide the flexibility needed to launch and grow businesses.
Li said the finding surprised researchers because it showed how entrepreneurship opportunities differ between urban and rural environments.
“The most surprising thing that we found is the different roles of child care access in more rural communities as opposed to urban communities or rural communities close to urban areas,” Li said.
According to the study, women entrepreneurs in rural areas often balance family responsibilities with business ownership. Without dependable child care options, many face significant obstacles to starting a company or expanding an existing business.
When quality child care is available and affordable, however, women gain valuable time to focus on developing products, serving customers, networking, managing operations, and pursuing business growth opportunities.
Researchers say this finding reinforces the importance of viewing child care not only as a family issue but also as an economic development issue.
Access to capital remains a major challenge
The study also identified access to financial institutions as a key component of successful rural entrepreneurial ecosystems.
Many rural communities have experienced bank closures and reduced financial services in recent decades. These changes can make it harder for aspiring entrepreneurs to secure loans, build business relationships, or obtain financial guidance.
For rural women entrepreneurs, limited access to capital can create an additional barrier to business ownership.
Whether opening a retail store, launching an online enterprise, expanding a farm operation, or creating a service-based company, access to financing often determines whether an idea can become a sustainable business.
Researchers found that communities with stronger financial infrastructure tend to offer more favorable conditions for entrepreneurship.
As a result, local leaders hoping to encourage rural women entrepreneurs may need to prioritize efforts to improve access to finance and connect women business owners with lending resources, grant programs, and technical assistance.
Education and community support matter
The study found that educational opportunities and community connections also play a key role in fostering entrepreneurial success.
Business ownership requires a wide range of skills, from financial management and marketing to strategic planning and customer service. Access to training programs, workshops, and educational resources can help entrepreneurs build those skills and improve their chances of success.
Equally important are community networks that connect entrepreneurs with mentors, partners, and other business owners.
In many rural communities, strong personal relationships form the foundation of economic activity. Entrepreneurs often rely on local support systems to share knowledge, identify opportunities and overcome challenges.
Researchers say these networks can be especially valuable for women who may have historically faced barriers to business ownership or lacked access to traditional entrepreneurial support systems.
Creating opportunities for networking, mentorship, and collaboration can help rural women entrepreneurs build confidence and develop sustainable businesses.
A new approach to rural economic development
Rural counties across the United States continue to face economic challenges, including population decline, workforce shortages, lower labor force participation, and limited investment.
For many communities, attracting large employers has become increasingly difficult. As a result, economic development leaders are exploring alternative strategies to grow local businesses and support entrepreneurship.
The WVU study suggests that investing in rural women entrepreneurs may be one of the most effective ways to build long-term economic resilience.
Rather than relying solely on recruitment, communities can strengthen their local economies by helping residents start businesses.
Researchers argue that successful entrepreneurship requires more than business incentives alone.
Instead, communities should take a holistic approach that considers the entire entrepreneurial ecosystem, including child care, education, access to finance, community support, and quality-of-life factors.
When these elements work together, rural women entrepreneurs are more likely to start businesses, expand operations, and contribute to local economic growth.
Implications for West Virginia
The findings may be particularly relevant to West Virginia, where many communities are rural, and small-business ownership is vital to local economies.
Across the Mountain State, women are increasingly launching businesses in industries ranging from tourism and hospitality to agriculture, health care, retail, and professional services.
These women-owned enterprises often create jobs, generate tax revenue, and help preserve the character and vitality of rural communities.
As state and local leaders continue to seek ways to strengthen West Virginia’s economy, research suggests that targeted investments in rural women entrepreneurs could yield significant returns.
Programs that expand access to child care, improve financing opportunities, increase educational resources, and foster stronger business networks may help unlock entrepreneurial potential throughout the state.
Supporting the next generation of rural women entrepreneurs
The research is part of a broader effort by WVU and its partners to better understand the factors that contribute to entrepreneurial success among groups that have historically had lower rates of self-employment.
Stephens, Li and Entsminger are now using their findings to support initiatives that help women launch and grow successful businesses in rural communities.
One component of that effort includes educational and training programs for individuals working in entrepreneurial ecosystem development.
Stephens noted that Daniel Eades of WVU Extension is helping lead a training initiative that will share research findings with practitioners and organizations working to strengthen entrepreneurship in rural America.
Researchers hope the effort will lead to more inclusive support systems that empower rural women entrepreneurs, create economic opportunities and foster stronger communities throughout West Virginia and beyond.
As rural communities continue to navigate economic change, the study offers a clear message: supporting rural women entrepreneurs is not simply a matter of expanding business ownership. It is an investment in economic growth, job creation, and the long-term vitality of rural America.