Revitalizing Main Street America Through Entrepreneurship

Introduction

Main Streets have long been the economic and social heart of American communities – the downtown strips of shops, restaurants, and local businesses that give each town its character. In recent decades, however, many of these Main Street districts have suffered from economic decline, competition from big-box retailers and e-commerce, and the loss of local industries. Vacant storefronts and fading town centers are common sights in rural villages, Rust Belt factory towns, and even suburban downtowns. Reversing this decline is a complex challenge, but one solution has gained broad support: entrepreneurship. By empowering local entrepreneurs to start small businesses, launch startups, and create social enterprises, communities are discovering a powerful catalyst for economic renewal. Small businesses are not just “nice to have” – they are indispensable drivers of jobs, innovation, and local wealth. In fact, from 2000–2019, small businesses created about two-thirds of net new jobs in the U.S [1], and currently account for roughly 44% of U.S. economic activity [2]. Unlike large corporations, locally rooted firms tend to recirculate a greater share of their revenue in the community – on average 52.9% of each dollar spent at a local independent business stays local, vs. only 13.6% for a chain retailer [3]. This “local multiplier” means entrepreneurship can deliver outsized benefits to hometown economies. Given these impacts, it’s no surprise that nurturing entrepreneurs has become a focal point for policymakers, community leaders, investors, educators, and aspiring business owners alike. This report provides an in-depth exploration of how entrepreneurship is revitalizing Main Street America, with a structured analysis spanning economic impacts, geographic perspectives, policy environments, recent trends, international comparisons, and illustrative case studies. The goal is to offer actionable insights – from federal policy ideas to on-the-ground strategies – to help stakeholders harness entrepreneurship as a engine for community revitalization.

The Economic Impact of Entrepreneurship on Local Economies

Vibrant small businesses and startups breathe life into local economies in ways that go far beyond their direct employment and output. At the most basic level, new and small firms are prodigious job creators. Small businesses employ nearly half of America’s private-sector workforce and consistently generate the majority of new jobs. Even after accounting for occasional setbacks, small firms have produced around 63% of net new jobs since the mid-1990s [4]. This dynamic was evident in the recovery from the Great Recession: after a “long hangover” of weak new business formation, entrepreneurship began rebounding and contributed to a broader jobs recovery [5]. Notably, the survival rate of new businesses has improved – almost half of new ventures now last at least five years, a marked turnaround from the early 2010s when only ~43% made it to the five-year mark [5]. Higher survival rates mean more young firms are growing into stable employers.

Just as important is how small businesses impact local economies. Because they are locally owned and operated, they tend to purchase supplies and services locally, employ local residents, and support local causes. This creates a virtuous cycle of community investment. Studies show that dollars spent at a neighborhood business often re-circulate 2–4 times more locally than dollars spent at absentee-owned corporations [3]. For example, a landmark analysis in Austin, Texas found a local bookstore and music shop returned over 3x as much money to the local economy as a proposed national chain bookstore would have [3]. Similarly, a multi-city study found $100 spent at a local indie store generates about $45 in secondary local spending, vs. just $14 when spent at a big-box chain [3]. This local spending supports other businesses and jobs – the barber, the print shop, the bank – in a reinforcing network. Small businesses also contribute disproportionately to local tax bases relative to their size, which funds schools, infrastructure, and public services.

Equally critical is the role of entrepreneurship in fostering innovation and resilience. Startups (whether tech-oriented or Main Street enterprises) often identify emerging needs and pioneer new solutions. Many of today’s big industries – from craft brewing to software – began as scrappy startups in someone’s hometown. While high-growth tech startups might grab headlines, “Main Street” entrepreneurs (think restaurateurs, retail shop owners, tradespeople, etc.) collectively have huge economic weight. They are on the frontlines of revitalization by activating empty storefronts, attracting foot traffic, and serving community needs. A new cafe or microbrewery can become a gathering place that draws visitors from neighboring towns, while an artisanal manufacturer can develop niche products that put a place on the map. Even social enterprises and nonprofits contribute – for instance, a community-run grocery co-op or a job-training social enterprise fills market gaps and keeps residents spending locally instead of driving elsewhere. The presence of diverse small businesses also improves quality of life, which in turn helps attract and retain residents (including the skilled talent that larger employers seek). In short, entrepreneurial activity creates a self-reinforcing ecosystem: businesses create jobs and local income, which creates local consumers and confident investors, which leads to more businesses. It’s this ecosystem that Main Street revitalization efforts aim to nurture.

Beyond economics, there’s a community cohesion aspect to local entrepreneurship. A bustling Main Street fosters interaction and civic pride. As one revitalization expert put it, “Downtowns are the heart and soul of any community,” and a healthy mix of local businesses and public spaces gives people a reason to gather and invest emotionally in their town [6]. This social capital has real economic value: volunteers and patrons rally to support local businesses, especially in times of need. (For example, during the COVID-19 pandemic, many communities launched “buy local” campaigns and small business relief funds, underscoring the community’s stake in these enterprises.) Conversely, when a community loses local businesses, it can enter a “doom loop” of decline – job losses, population outflow, eroding tax base, and deteriorating infrastructure [6]. Entrepreneurship is an antidote to that loop, sparking a cycle of renewal. The data from organized Main Street programs prove the point: in 2023 alone, Main Street America initiatives helped launch 6,630 new businesses and created over 35,000 jobs, leveraging $5.7 billion in local reinvestment [6]. Over the past four decades, the Main Street movement (a network supporting downtown revitalization) has cumulatively facilitated 175,000+ new businesses and 780,000+ new jobs nationwide [7] ****– tangible evidence that community-driven entrepreneurship can move the needle in even modest-sized towns. Each small business may be “small” on its own, but together they add up to a big economic engine for Main Street America.

Diverse Geographies: Rural, Rust Belt, and Suburban Perspectives

Entrepreneurship-driven revitalization is not a one-size-fits-all proposition; it plays out differently across America’s varied geographic landscapes. The needs and opportunities of a remote rural village differ from those of a former steel town or a suburban strip mall. Let’s examine how entrepreneurship is impacting three broad categories of communities – rural areas, Rust Belt cities, and suburban communities – each with unique challenges and success stories.

Revitalizing Rural Communities through Local Enterprise:

Rural America has arguably felt the brunt of Main Street decline. Many farming towns and remote counties have seen decades of job losses (e.g. factory closures, farm consolidations), population flight, and dwindling services. As rural areas hemorrhaged jobs and residents over the last decade [6], some observers resignedly predicted an “inevitable” rural decline. Yet, in pockets of the heartland, entrepreneurship is offering a hopeful counter-narrative. Small towns are discovering that they can’t rely on luring a single big employer; instead, their strength lies in growing their own businesses from the ground up. This approach – sometimes called entrepreneur-led development – focuses on empowering local people to start enterprises that leverage unique local assets (whether it’s a farm-to-table food business, an outdoor tourism outfitter, or a remote tech startup tapping into broadband).

One key strategy has been to tap into local identity and niche markets. Towns that succeed often build on what makes them distinctive. For example, a rural community with a historic downtown might develop antique shops, cafes, and art galleries that draw heritage tourism. Another with scenic landscapes might cultivate outdoor recreation businesses. By programming regular events – farmers’ markets, festivals, fairs – they keep foot traffic flowing year-round [6]. This not only helps existing businesses but also creates a welcoming environment for new ones (an aspiring entrepreneur sees a lively downtown and imagines their own shop there). Placemaking – beautifying main streets with lighting, landscaping, murals, and gathering spots – has proven important in rural towns, as it rebuilds community pride and makes locals (especially youth) more likely to stay and invest in the area [6]. Crucially, rural entrepreneurship also depends on access to resources that can be scarce in small towns. Communities are addressing this by establishing local entrepreneur support centers, often in partnership with regional Small Business Development Centers (SBDCs) or universities. These hubs provide training, mentorship, and sometimes co-working space, ensuring rural business owners don’t have to go it alone.

The results, in some cases, have been remarkable. Consider Ord, Nebraska – a town of around 2,100 people that became a model for rural revival through entrepreneurship. Starting in the early 2000s, Ord’s leaders pursued an ecosystem-building approach: they matched entrepreneurs with appropriate local capital (including community-based loans), ran youth entrepreneurship programs, and fostered a culture of mentorship [8]. Over two decades, Ord’s Valley County saw its severe population decline nearly halt – from losing 27% of residents in the 1980s to losing just 1% in the last 10 years [8]. Empty buildings in downtown Ord have turned into opportunities: locals now ask “what kind of entrepreneur will reinvent this space?” rather than seeing it as a loss [8]. A similar story comes from Emporia, Kansas, a small city (pop ~25,000) that was hit by major employer losses in past decades. Emporia doubled down on supporting homegrown entrepreneurs and the arts over 30 years, including leveraging an active Main Street program to coordinate efforts [8]. They developed local financing options and technical assistance for small businesses, which helped the town weather the closure of big factories and even attract new residents. These examples show that with the right support, rural entrepreneurs can thrive – and when they do, they create jobs, restore services, and even reverse “brain drain” by enticing young families and expats back home [8]. Indeed, rural return migration has become a trend in some areas, as quality of life improves and remote work opens new possibilities. For policymakers, the takeaway is that investing in broadband, training, and locally driven strategies can unlock the latent innovative spirit that still lives in rural America [8].

Despite these successes, challenges remain. Overall, rural areas today host a smaller share of new businesses than in the past – by one estimate, only about 12% of U.S. startups are now in rural areas, down from 20% in the late 1980s [9]. This decline reflects decades of youth outmigration and capital concentrating in cities. To turn it around, continued effort is needed to build rural entrepreneurial ecosystems (including access to capital, since rural firms rely heavily on small community banks for financing [10]). Programs like the U.S. Department of Agriculture’s rural business grants, SBA’s outreach through regional partners, and state rural opportunity funds are steps in the right direction. The evidence from Ord, Emporia, and dozens of Main Street towns is that entrepreneurship can indeed revitalize rural communities – but it requires patience, locally tailored approaches, and a focus on “building, not buying” solutions (i.e. growing your own businesses rather than praying for outside saviors) [8].

Rust Belt Reimagined: Entrepreneurship in Industrial Towns:

America’s Rust Belt – the swath of the Midwest and Great Lakes once dominated by manufacturing – has become almost synonymous with economic distress and population loss. Cities like Detroit, Cleveland, Youngstown, and Buffalo boomed in the 20th century, then went through painful contractions as factories closed and jobs moved offshore or to the Sun Belt. Their Main Streets and downtowns often emptied out as well, leaving behind vacant plants and blighted commercial strips. In the past decade, however, there has been a stirring of entrepreneurial activity across the Rust Belt that offers hope for a renaissance. Local startups, tech ventures, and small manufacturers are beginning to “ignite a Rust Belt revival”, as one entrepreneur put it [11]. The formula for success here mixes innovation with reinvention of place.

One critical ingredient is addressing the capital gap. For years, a lack of risk capital in the Rust Belt held back the region’s ability to turn its wealth of talent and R&D into new businesses and jobs [12]. Unlike Silicon Valley or Boston, Midwest entrepreneurs struggled to find venture funding or angel investors. That is slowly beginning to change: cities like Detroit and Pittsburgh have seen an uptick in venture funds and accelerators, and states like Ohio and Michigan have created programs to seed innovation. Public policy can accelerate this trend – for instance, by supporting state-level venture funds, offering investment tax credits for startups, or leveraging federal initiatives like Opportunity Zones to draw capital to underinvested neighborhoods. Buffalo, New York is a case in point of public-private investment spurring entrepreneurship. Once an emblem of Rust Belt decline, Buffalo launched a bold initiative called the “Buffalo Billion,” a state-backed $1B economic development plan aimed at new industries. As part of this, the city created one of the nation’s largest startup pitch competitions (43North), offering $5 million in prizes to attract and grow startups in Buffalo [11]. The city also partnered with private developers on creative real estate projects – for example, opening up vacant downtown storefronts for pop-up shops that gave local retailers free space during the holidays [11]. This generated buzz and foot traffic on Main Street while helping entrepreneurs test concepts. Buffalo’s strategy of finding a “new niche” – positioning itself as a hub for clean energy manufacturing and medical genomics – has begun to pay off, with major investments like a large solar panel factory (built by Tesla/SolarCity) bringing an estimated 3,000–5,000 jobs [11]. While large projects like that grab headlines, equally important has been the emergence of dozens of smaller tech startups and social enterprises now calling Buffalo home. Construction is booming, historic buildings are being redeveloped into incubators and mixed-use spaces, and talent from area universities is starting to stick around rather than leave [11]. Buffalo’s turnaround illustrates how concerted efforts to support innovation – led by the private sector but bolstered by government – can change a city’s trajectory [11].

Other hard-hit cities are following suit. Detroit, Michigan, after its 2013 bankruptcy, leaned heavily on entrepreneurship to fill the void. Local billionaires invested in downtown properties to create startup spaces, and grassroots movements lured young creatives to revive derelict neighborhoods [11]. The result has been a burgeoning ecosystem of small art galleries, niche manufacturers, tech startups, and hip eateries – essentially, entrepreneurs repopulating the city’s economic landscape. Detroit’s example shows that embracing a new identity (in Detroit’s case, a haven for artists, makers, and innovators attracted by cheap space and the chance to shape an “underdog” city) can be a powerful revitalization strategy. Meanwhile, Pittsburgh, Pennsylvania transformed itself from a steel city to a tech and healthcare hub, leveraging its universities (Carnegie Mellon, University of Pittsburgh) to spin out robotics and biotech startups. Pittsburgh cultivated innovation clusters and reinvested in its iconic neighborhoods – today its unemployment is far below Rust Belt averages, and tech companies like Google have major offices there, drawn by the talent and startups. Cleveland and Youngstown, Ohio have invested in accelerators and maker hubs (e.g. the Youngstown Business Incubator specializes in advanced manufacturing startups), showing how midsized industrial cities can carve out entrepreneurial niches of their own [11].

Critically, many Rust Belt revitalization efforts also acknowledge the role of immigrant entrepreneurs and minority-owned businesses in energizing Main Streets. A study of the Great Lakes region found that by 2015, immigrants made up more than one out of every five “Main Street” business owners, and their businesses created nearly 239,000 jobs for U.S.-born workers from 2000–2015 [13]. Cities like Cleveland, Detroit, and Pittsburgh have launched “welcoming” programs to attract immigrant entrepreneurs (for example, Detroit’s New Economy Initiative provides support to immigrant-owned small businesses in neighborhood corridors). These efforts recognize that new Americans often start businesses in vacant niches – from restaurants and grocery stores to nail salons and tailoring shops – thereby revitalizing commercial strips that others may have abandoned. They also contribute significant consumer spending that keeps local business corridors vibrant. Welcoming these entrepreneurs can thus be a win-win, and federal immigration policy (like visas for immigrant entrepreneurs) can further support this revitalization avenue.

In summary, the Rust Belt’s path to revival is being paved by entrepreneurs – whether high-tech startups or humble Main Street enterprises. Key lessons from early successes: invest in local strengths (e.g. universities, existing industries), fill financing gaps (public incentives for venture capital, incubators), reuse legacy assets (old industrial buildings can become attractive offices, apartments, or maker spaces [11]), and foster a culture that celebrates new ideas. Importantly, place-based policies matter: things like improving downtown streetscapes, offering tax abatements for rehabbing historic structures, and marketing the city’s new identity help change perceptions and draw both people and capital. The Rust Belt is showing that with strategic support, even communities once deemed “left behind” can reinvent their Main Streets for the new economy.

Suburban Renewal and Main Street Entrepreneurship:

In America’s suburbs – home to a majority of the population – the challenges are different but pressing. Many suburban areas historically lacked a traditional “Main Street,” or if they had one, it was overshadowed by shopping malls and highway retail strips. Now, with malls in decline and a growing desire for walkable community hubs, suburbs are turning to entrepreneurship to create vibrant downtown-style districts. This can mean retrofitting an old shopping center into a mixed-use “town center” with local businesses, or revitalizing an old main street that had languished. Suburban small businesses face competition from large retail chains and e-commerce, but they also have opportunities: a dense local customer base, and often higher incomes in the area. One trend is that many young entrepreneurs who grew up in suburbs are returning to start businesses, blending online and offline – for instance, a local boutique that began as an Instagram shop, or a food entrepreneur who expands from a farmers’ market stall to a brick-and-mortar cafe. As the U.K.’s Federation of Small Businesses notes in their high street report, the next generation of entrepreneurs often starts online but “wants to be on their local high street” given the right support to transition from digital to physical storefronts [14]. Suburban communities are keen to accommodate this by simplifying permitting and providing pop-up spaces for trial runs.

Several suburban towns have demonstrated how foresight and local investment can rejuvenate their commercial centers. For example, Hoboken, New Jersey (a dense inner suburb of NYC) fostered hundreds of independent restaurants, boutiques, and tech startups in the 2010s by capitalizing on its transit access and young talent pool, transforming Washington Street into a bustling main street. In Carmel, Indiana, the city government intentionally built a walkable downtown from scratch – the Carmel Arts & Design District – which attracted small art galleries, cafes, and boutiques, making Carmel a model for suburban placemaking. Across many suburbs, we see the rise of local breweries, artisanal coffee shops, yoga studios, and farmers’ markets as evidence of a “localism” movement in suburbs. These businesses provide the experiences and sense of community that chain stores and malls often lack. Notably, suburban entrepreneurs also benefit from the remote work trend: with more professionals working from home (a trend accelerated by COVID-19), daytime demand for local eateries and services in suburban neighborhoods has increased. Former commuters now spend more of their dollars locally on weekdays, supporting small businesses. Some suburbs have even started coworking spaces on Main Street to cater to remote workers – for instance, downtown Plano, Texas and Evanston, Illinois both have coworking hubs that double as small-business incubators.

Policy plays a role here too. Some state and local governments have provided grants to convert vacant big-box stores into multi-tenant marketplaces for small vendors. Others have relaxed zoning to allow mixed-use development (so that housing, offices, and retail can coexist and create all-day foot traffic for businesses). Parking and transit access are also key considerations for suburban main streets; surveys in the U.K. found that nearly half of high street businesses cited parking management as a critical factor for their success [14]. Forward-thinking suburbs invest in pedestrian-friendly streetscapes and public transit that deliver customers to small businesses’ doors. In essence, suburbs are learning that creating a thriving “main street” environment is possible, but it requires deliberate action to foster independent businesses and a sense of place. When successful, the payoff is substantial: increased property values, local job creation, and a community identity that attracts families and young professionals alike.

The Role of Policy: Federal, State, and Local Support

Entrepreneurial revitalization of Main Streets doesn’t happen in a vacuum – it is often enabled or hindered by the policy environment. All levels of government have tools to support (or inadvertently stifle) local entrepreneurs. Here we outline the roles and policy levers at the federal, state, and local levels that can bolster Main Street entrepreneurship.

Federal Policy and Programs:

The federal government’s influence comes through funding, regulation, and nationwide initiatives. One of the biggest federal supports for Main Street is the U.S. Small Business Administration (SBA). The SBA provides vital credit and capital through loan guarantee programs – such as 7(a) loans and 504 loans – which help thousands of entrepreneurs secure financing each year. In FY2022 alone, the SBA backed over $36 billion in small business loans, many of which went to businesses in underserved areas. The SBA’s network of Small Business Development Centers (SBDCs), Women’s Business Centers, and SCORE mentors offers free or low-cost training and mentorship in every state, giving entrepreneurs in small towns access to expertise in business planning, marketing, and finance. Programs like these create the supportive infrastructure that is especially crucial for first-time business owners. Federal policymakers can ensure these programs are fully funded and accessible (for example, expanding outreach in rural areas or simplifying loan application processes).

Another federal lever is the tax code and targeted incentive programs. Opportunity Zones, created in 2017, offer capital gains tax deferral for investments in designated distressed communities. While much OZ funding has gone into real estate, there is potential to channel more of it into operating businesses and local startups [15] [16]. Refining Opportunity Zone rules to encourage venture investment in Main Street businesses (and not just luxury developments) could help fill the financing gap for entrepreneurs in low-income areas. Similarly, the New Markets Tax Credit program has been used to finance small business loan funds and Main Street revitalization projects in underserved communities. On the regulatory side, federal policy can reduce barriers to entrepreneurship – the JOBS Act of 2012, for instance, legalized equity crowdfunding, opening new avenues for entrepreneurs to raise capital from their community. Ongoing regulatory reform to simplify business formation, reduce onerous licensing requirements, and ensure fair competition (preventing monopolistic behavior by large firms) is vital. As Kauffman Foundation research argued, removing “zero barriers” to startup formation – whether they be high fees, complex rules, or lack of access to benefits for the self-employed – could unleash a new wave of entrepreneurs [5]. Finally, federal investment in infrastructure like broadband internet greatly benefits Main Street businesses, especially in rural regions where many entrepreneurs rely on e-commerce and telework. The recent Infrastructure Investment and Jobs Act, which allocates funding for rural broadband expansion, will directly empower more rural folks to start digital enterprises or reach broader markets. In summary, federal policy should focus on capital access, technical support, removing red tape, and building foundational infrastructure – all of which create a fertile ground for local entrepreneurship to flourish.

State-Level Initiatives:

State governments often act as incubators of innovative support strategies for entrepreneurs. Many states have realized that traditional industrial recruitment (chasing big outside employers) has limitations, and are shifting toward growing their own businesses – sometimes dubbed a “grow your own” economic development strategy. State tools include grant programs, tax incentives, and ecosystem building. For example, several states have established state venture capital funds or seed funds to invest in startups that might be too risky for banks. Ohio’s Third Frontier program is one notable example that provided seed capital and built research commercialization centers across the state, contributing to Ohio’s rise in bioscience and fintech startups. Likewise, states like Indiana and Michigan have implemented matching grant programs to spur the creation of local entrepreneurial support organizations (incubators, maker spaces, etc.) in smaller communities [12]. These grants help fund business accelerators and Main Street organizations that directly assist entrepreneurs on the ground.

State tax policy can also encourage Main Street revitalization. Many states offer Historic Preservation Tax Credits for rehabilitating old downtown buildings – this has been crucial for converting abandoned structures into new restaurants, boutique hotels, or offices for startups. States often pair these with small business development grants or low-interest loan funds, so an entrepreneur who wants to open a bakery in a formerly vacant building can get help with both renovation and startup capital. Enterprise zones or Main Street zones in some states provide tax abatements or credits to businesses that locate in designated downtown districts or distressed areas, offsetting some early costs. On the softer side, states play a convening role: Governor’s offices and state agencies can champion entrepreneurship through strategic plans and public-private partnerships. For instance, the National Governors Association has highlighted how governors can make entrepreneurship a priority, noting that an “entrepreneurship-centric approach to economic development is the way to a stronger economy” and urging states to be incubators of innovation in policy. Some states host annual small business competitions or entrepreneur summits to celebrate local innovators and connect them with resources. Education is another lever – state university extensions and community colleges often run entrepreneurship programs, and states can fund these or encourage integration of entrepreneurship into school curricula, planting the seed for the next generation of Main Street business owners. The core principle at the state level is to enable local action: give communities the flexible funding and tools they need, and clear any state-level hurdles (for example, reforming overly strict occupational licensing laws that can prevent home-based businesses or mobile businesses from operating). States can also ensure their policies are inclusive – supporting minority, veteran, and women entrepreneurs who are historically underrepresented yet play a huge role in local economies.

Local Strategies and Policies:

At the city and county level, policies directly shape the day-to-day operating environment for Main Street entrepreneurs. Local governments can be powerful facilitators of revitalization by aligning zoning, permitting, and local investment in favor of small business growth. One of the most effective approaches has been the Main Street program framework (developed by the National Main Street Center), which many cities adopt. This framework focuses on organization (bringing stakeholders together), promotion (marketing the downtown), design (improving the physical environment), and economic restructuring (helping businesses thrive). Local Main Street organizations often form as public-private partnerships – the city, local businesses, and civic groups collaborate on events, storefront improvement grants, and business recruitment. For instance, towns set up façade improvement funds to help entrepreneurs repaint and refurbish old building fronts, or they provide small relocation grants to encourage businesses to fill key vacant spots. The economic impact can be significant: Main Street America notes that local Main Street programs yield an average reinvestment ratio of $18 returned for every $1 invested in the program [6]– a testament to the leverage of local volunteers and modest city funding when applied smartly. Streamlining bureaucratic processes is another local policy area that can greatly affect entrepreneurship. Savvy cities have created one-stop shops for business permits and licenses, cutting down on the time and confusion it takes to open a business. Some have waived or reduced permitting fees for first-time small businesses or for improvements in downtown districts. Fast-tracking approvals for things like sidewalk cafes or signage can encourage more vibrant street life, which benefits all Main Street merchants. Cities are also experimenting with temporary-use permits to allow pop-up businesses in empty storefronts (like Buffalo’s free holiday pop-up program) [11] or outdoor markets, which lower the barrier to entry for entrepreneurs to test concepts. These temporary activations often lead to permanent businesses if they succeed. Additionally, local governments can use procurement and contracting to support small firms – for example, giving preference or technical assistance to local businesses to bid on city contracts (catering events, providing services, etc.), thus injecting public dollars back into the local economy.

Finally, local leadership is critical in building coalitions and a shared vision for revitalization. Many successful towns have a charismatic “champion” – perhaps a mayor, economic development director, or local business owner – who rallies others around the cause of rebuilding Main Street. They organize initiatives like “shop local” campaigns, business plan competitions for aspiring entrepreneurs, or downtown cleanup and beautification drives (sometimes engaging youth and volunteers to spruce up the area). They might also pursue creative financing like local investment crowdfunding (where community members invest small amounts in a local business) or the formation of community development corporations (CDCs) that can own and revitalize properties to then lease to entrepreneurs. One inspiring example is Huntington, West Virginia, where a coalition of local stakeholders in the West End neighborhood leveraged grants and formed a nonprofit (“RenewAll, Inc.”) to spearhead improvements. They partnered with a social enterprise called Coalfield Development Corporation, which turned an abandoned factory into the WestEdge Factory – a 96,000 sq. ft. hub that incubates multiple social enterprises and trains unemployed residents in trades [18]. This project, supported by federal EDA and USDA grants, created new businesses in construction, woodworking, solar installation, and more, all while tackling blight and building workforce skills [18]. It shows how local initiative combined with supportive policy (grants, technical assistance) can yield a triple win: economic, social, and environmental benefits.

In essence, local governments are the first responders and enablers of Main Street entrepreneurship. By creating a friendly habitat for small businesses – through infrastructure (walkable streets, broadband, parking), streamlined regulations, small incentives, and community engagement – they set the stage upon which entrepreneurs can perform. When federal, state, and local policies align, they form an ecosystem where entrepreneurship isn’t a struggle against the odds, but rather the natural and supported course for community development.

Recent Trends (2010s to Today): A Resurgence of Main Street Entrepreneurship

Over the past decade, the landscape of Main Street entrepreneurship has been shaped by significant economic swings and societal shifts. The early 2010s saw a continuation of the long-term decline in U.S. business dynamism – fewer new firms were starting compared to historical norms, and the aftermath of the 2008 recession made entrepreneurs cautious. This led some economists to warn of an “entrepreneurship deficit” in the country. However, by the mid-to-late 2010s, signs of a rebound emerged. The Kauffman Main Street Entrepreneurship Index – which tracks local small business activity – climbed to near a two-decade high by 2017, indicating a resurgence in small business formation and survival [5]. Factors contributing to this included improving survival rates (thanks to a strong economy and perhaps lessons learned from the recession), and a cultural shift encouraging entrepreneurship (with popular media and education increasingly touting start-up life).

Then came the COVID-19 pandemic in 2020, which turned many trends on their head. Initially, the pandemic was a crisis for small businesses: lockdowns and public health measures hit Main Street hard, forcing many stores and restaurants to close (some temporarily, others permanently). Yet, in an unexpected twist, the pandemic period also unleashed a record-breaking entrepreneurship boom. Starting in mid-2020, Americans filed new business applications at rates never seen before, as people re-evaluated careers, saw new problems to solve, or needed to create their own jobs amid layoffs. This surge accelerated into 2021 and 2022. A record 5.4 million business applications were filed in 2021, a 53% jump from 2019 [19]. And 2022 and 2023 sustained those high levels – 2023 saw roughly 5.5 million new business applications, the most ever in a single year [20].

Annual new business applications in the United States (2015–2023). The COVID-19 era has seen an unprecedented surge in entrepreneurship, with 2021–2023 far above pre-pandemic levels.

This entrepreneurial surge spans a range of sectors. A significant portion of the new applications were for non-store (online) businesses, as one might expect in a pandemic. But importantly, about one-third of 2021’s applications were for “likely employer” businesses (firms that indicated they plan to hire staff) [19], suggesting many true small employer firms are in the mix, not just individual gig startups. The boom has been nationwide, with every state seeing an increase, though some of the biggest jumps were in the Southeast and parts of the Midwest [19]– possibly indicating a democratization of startup activity beyond the traditional coastal hubs. This is good news for Main Streets: more entrepreneurs in more places willing to take the leap. It’s worth noting that not all these applications will translate into sustainable businesses; historically, only a fraction of business applications result in firms that hire employees and persist for multiple years. Nonetheless, early data show the post-2020 cohort of new businesses is persisting at rates comparable to or better than past cohorts, dispelling a myth that most businesses fail immediately [20]. In other words, the pandemic may have shocked many into entrepreneurship, but a considerable number are sticking with it.

Other trends of the last decade intersect with this boom. The rise of the digital economy has lowered barriers for Main Street businesses to find customers and streamline operations. Even the smallest mom-and-pop shop can sell on Etsy or Amazon, use social media for marketing, and utilize cloud software for accounting and logistics. This means rural artisans, for example, can reach global markets from a Main Street studio, or a suburban bakery can thrive via online orders and delivery apps. Technology has also enabled new business models on Main Streets – such as coworking spaces, as mentioned, and hybrid retail (physical storefronts that double as mini-fulfillment centers for online sales). Additionally, the “shop local” movement gained momentum, especially during the pandemic when consumers consciously supported neighborhood businesses to help them survive. Many communities have kept that spirit alive, running seasonal shop-local challenges or developing local gift card programs to keep spending circulating within town.

However, not all trends are rosy. A challenge noted by economists is that new businesses today tend to employ fewer people on average than decades ago [5]. Automation and the nature of tech startups mean companies can scale revenue with leaner teams – the oft-cited example: in 1962, Kodak had 75,000 employees when its revenue hit $1 billion, whereas Facebook in 2013 had about 6,300 employees for similar revenue [5]. For Main Street, this trend might manifest as more sole proprietorships or micro-businesses (1–2 person operations). These still contribute to the economy, but the job multiplier per business is lower. It underscores the importance of having many new businesses – the more entrepreneurial density, the more total jobs created to offset each firm’s smaller footprint. It also puts emphasis on helping the small get less small– policies that help a solo entrepreneur hire their first employee, or a 5-person firm grow to 10, can amplify job creation.

Another trend is the increasing diversity of entrepreneurship. There’s growing recognition and support for women entrepreneurs, entrepreneurs of color, and older entrepreneurs (e.g. baby boomers launching second careers as business owners). Over the past decade, the number of women-owned and minority-owned businesses has grown steadily, though gaps remain. Initiatives to promote inclusive entrepreneurship – from minority business accelerator programs to female founder networks – are now part of the Main Street revitalization toolkit, making sure that the revitalized Main Street is one that reflects and benefits the whole community.

Lastly, the 2020s have brought a shift in how people view work and lifestyle, which indirectly boosts Main Streets. With remote work more common, many people have relocated from expensive big cities to smaller cities, suburbs, or rural areas that offer a better quality of life. This migration has injected new energy and talent into those destinations. Places from Boise, Idaho to Bentonville, Arkansas have welcomed an influx of professionals who now demand more local amenities – restaurants, cafes, specialty retail – sparking new businesses to meet those needs. Some towns even offer incentives for remote workers to move there (Tulsa, Oklahoma and others have done this), effectively seeding their Main Street economy with new consumers and potential new entrepreneurs. The “Zoom town” phenomenon (small towns growing due to remote work influx) is real [21], and Main Street businesses are adapting to serve these new residents. In summary, the past decade has seen the reemergence of entrepreneurship as a cornerstone of economic growth, with Main Streets benefiting from a confluence of favorable trends: a cultural embrace of small business, technological empowerment, and demographic shifts that favor localism. The challenge ahead is to sustain this momentum and ensure these new businesses can navigate inflation, supply chain issues, and other post-pandemic realities.

International Perspectives: Revitalizing Local Economies Abroad

While this report focuses on the U.S., communities around the world are grappling with similar Main Street revitalization challenges – and their experiences provide useful comparisons and ideas. In many developed countries, small independent businesses have been threatened by globalization and chain homogenization, prompting policy responses to save the character and economy of local high streets (the equivalent of Main Streets).

One prominent example is the United Kingdom, where the decline of the “High Street” (town center shopping areas) has been a national concern. The UK government in recent years launched a Future High Streets Fund and empowered local councils with new authority to tackle vacancies. In 2022, Britain passed a law giving councils the power to force landlords to rent out long-vacant shops to new businesses or community groups [23]. The idea is to prevent prime commercial spaces from sitting empty and blighting the area; instead, they can be used by pop-up entrepreneurs or local startups, injecting life into struggling high streets. The UK has also experimented with reducing business property taxes for small retailers and providing grants to convert unused retail space into residential or other uses, to reduce oversupply. The Federation of Small Businesses (FSB) UK has advocated for easing the transition of online micro-businesses into physical storefronts, noting that many young entrepreneurs start selling on platforms or social media and could expand to a shop if barriers (like high rents and rigid leases) were lower [14]. This mirrors some U.S. initiatives around pop-ups and incubator retail spaces.

In continental Europe, there’s a tradition in countries like France, Italy, and Germany of strong small merchants and local markets. Policies there have often aimed at protecting small shops – for instance, France historically had rules limiting large hypermarkets and preserving boulangeries and cafes as part of its cultural heritage. In recent years, French towns have invested in “Coeur de Ville” (Heart of City) programs to revitalize town centers with small business support and historic preservation similar to the U.S. Main Street approach. Italy’s model of industrial districts – networks of small, specialized firms in a local area – shows how small manufacturers together create world-class competitive sectors (like the textile workshops of Prato or the furniture makers of Brianza). These districts, often centered around a town, keep craftsmanship and jobs local while selling globally, a strategy that could inspire niche manufacturing hubs on American Main Streets.

Some countries have tackled the issue of declining rural towns with entrepreneurial solutions. Japan, facing severe depopulation in its countryside, has initiated programs to turn rural villages into hubs for agritourism and remote work. Local governments offer subsidies for urbanites who move to rural areas to start businesses (such as organic farms, inns, or tech ventures), aiming to repopulate and revitalize those communities. The European Union has also funded numerous projects under its regional development funds to support entrepreneurship in lagging regions, from startup incubators in the Baltic states to social enterprise programs in Spain. One interesting EU concept is the social enterprise zone, where social businesses (focused on social impact as well as profit) get support to take over disused community facilities – somewhat akin to how Coalfield Development in West Virginia repurposed a factory for social enterprises [18].

In the developing world, the context differs but offers lessons in grassroots enterprise. In places like India and parts of Africa, development organizations have used microfinance and training to spur village-level entrepreneurship, resulting in improved local livelihoods and services. While U.S. Main Streets are not the same as rural villages in emerging economies, the underlying principle – empower local people (especially women and marginalized groups) to run businesses and the community prospers – holds true universally.

A common thread globally is the idea that a successful local economy in the 21st century must diversify and differentiate. The UK House of Lords released a report urging towns to “look beyond retail” to reverse high street decline, recommending more mixed uses – culture, health, leisure, education – to keep town centers active [24]. This aligns with what many U.S. towns are doing: turning former shopping streets into “experience” destinations (with theaters, museums, or co-op workspaces) alongside shops. Essentially, creating a reason for people to come downtown beyond just shopping.

International cases also highlight the importance of community involvement and ownership. In some UK towns, community trusts have bought out their local pub or grocery store to prevent its closure and now run it successfully as a cooperative. In Spain, some towns have combated the closure of local banks or bakeries by arranging cooperatives or subsidized entrepreneurship to ensure those services continue. This notion of community-supported enterprise is catching on in the U.S. too (e.g. residents forming co-ops to reopen a closed store in a rural food desert).

In conclusion, while policy details vary, the international perspective reinforces many of the same core ideas: invest in your local people, make it easier for them to start and sustain businesses, and actively shape your main streets/high streets into attractive places where commerce is intertwined with community life. Places that have done so – whether a small town in Nebraska or a village in rural England – are seeing encouraging results.

Case Studies of Main Street Revitalization

To illustrate the concepts discussed, this section highlights a few case studies of successful entrepreneurial revitalization across different contexts. Each demonstrates how leadership, policy support, and local ingenuity combined to bring a Main Street back to life.

Case Study: Ord, Nebraska – A Rural Comeback through Ecosystem Building

Background: Ord is a small farm town (population ~2,100) in north-central Nebraska. Like many rural communities, it faced steep decline in the late 20th century – the county lost over a quarter of its population in the 1980s as young people left and farms consolidated [8]. By the early 2000s, Ord was at a crossroads: accept slow decline or try a new approach.

Entrepreneurial Intervention: Ord chose the latter, embarking on an “entrepreneurial ecosystem” strategy led by local champions and supported by outside expertise (including the Center for Rural Entrepreneurship). They established the Ord Economic Development program, funded by a local sales tax, explicitly to support local business creation. Key initiatives included a rotating loan fund to provide low-interest loans to local startups and expansions, leadership and entrepreneurship classes (in high school and for adults) to build skills, and active recruitment of alumni to return and start businesses. Ord also leveraged state programs and philanthropic grants to improve infrastructure (broadband, industrial park space) and quality of life (new pool, park improvements), making the town more attractive for businesses and families. Importantly, they nurtured a culture of mentoring and networking – experienced business owners counseled new entrepreneurs, and the community celebrated successes with events like an annual entrepreneurship banquet.

Outcomes: Over roughly 15 years, Ord’s efforts led to the creation of about 100 new businesses and 350 new jobs in the area [25]. These range from small manufacturers to retail shops to remote-work tech freelancers. The downtown saw many buildings refurbished and occupied. Critically, the population decline dramatically slowed: Valley County went from a –27% drop in the 1980s to only –1% in the 2010s [8], essentially stabilizing. Some young families have moved in, and local high schoolers can now see a future in Ord, whether taking over a family business or starting their own. Ord’s success has been documented as a model – proving that entrepreneur-led development can revive a rural economy [26][8]. The community continues to invest in its ecosystem, showing that revitalization is an ongoing process, not a one-time project.

Case Study: Buffalo, New York – Public-Private Investment Spurs a Rust Belt Revival

Background: Buffalo is a mid-sized city (pop ~278,000) that was once a prosperous industrial and trade center but suffered a long decline after the 1950s. By 2010, Buffalo had high poverty, lots of empty buildings downtown, and decades of job stagnation. New York State identified Buffalo as a candidate for major intervention to reverse its fortunes.

Entrepreneurial Intervention: In 2012, Governor Andrew Cuomo announced the “Buffalo Billion” initiative – a $1 billion state investment to revitalize Buffalo’s economy with a focus on innovation and entrepreneurship. This included building state-of-the-art facilities (like the Buffalo Niagara Medical Campus expansion and a SolarCity/Tesla solar panel factory) and seeding an entrepreneurial ecosystem. One marquee program was 43North, an annual startup competition offering a top prize of $1 million and incubator space in Buffalo, plus smaller prizes to other winners. To date, 43North has drawn startups from around the world to relocate to Buffalo, building a growing tech community. On the Main Street front, local real estate developers, supported by tax incentives, renovated historic buildings in downtown Buffalo into mixed-use complexes – loft apartments upstairs (bringing residents downtown) and startup offices or retail at street level. A notable example is the Market Arcade building, which hosted the Queen City Pop-Up retail program that allowed local artisans and retailers to use space rent-free during holiday seasons [11]. This not only gave entrepreneurs exposure and revenue, but it also re-energized downtown with shoppers and events. The city government improved downtown streetscapes and even restored car traffic to Main Street (which had been a pedestrian/transit mall) to increase accessibility for businesses. The focus was on creating an innovation-friendly city that could attract and retain talent – improving transit, supporting incubators, and boosting nightlife and cultural amenities that entrepreneurs value.

Outcomes: Buffalo’s resurgence is still ongoing, but the results are evident. The city’s unemployment rate fell and thousands of jobs have been added since the Buffalo Billion began. Hundreds of new businesses have started – not just tech startups from 43North, but also countless small enterprises in food, hospitality, and services that have sprung up to serve the growing downtown population and workforce. Buffalo’s population decline has leveled off, and there are signs of modest growth as more young professionals choose to stay. Main Street indicators are strong: as of 2019, downtown Buffalo had over $1.5 billion in projects completed or underway, with vacancy rates on key commercial strips dropping significantly. While not without controversies (some expensive projects have had delays), Buffalo’s strategy of pairing large-scale investment with grassroots entrepreneurship is broadly seen as a template for Rust Belt renewal [11]. The city is becoming known for specific niches – e.g., a hub for clean energy tech and medical innovation – fulfilling the idea of finding a new identity beyond its industrial past [11]. Buffalo demonstrates the impact of aligning state resources, local leadership, and entrepreneurial energy toward a common revitalization vision.

Case Study: Huntington, West Virginia – Social Enterprise Revitalizing a Community

Background: Huntington is a smaller city (~45,000 people) in Appalachia that struggled with industrial decline and the opioid epidemic. The West End of Huntington, historically a working-class area around 14th Street West, had seen many businesses close and properties deteriorate. By the mid-2010s, community members were determined to save their neighborhood from blight.

Entrepreneurial Intervention: The approach Huntington’s West End took was unique in that it heavily integrated social enterprise and community-driven development. The city entered (and won) a national “America’s Best Communities” contest in 2017, which provided seed money for revitalization. Residents and local leaders formed a nonprofit, RenewAll, Inc., to spearhead projects on 14th Street West. They partnered with Coalfield Development Corporation, a local nonprofit that creates social enterprises to diversify the coal-dependent economy. Coalfield had purchased an old clothing factory (96,000 sq ft) in an adjacent neighborhood and transformed it into the WestEdge Factory, a multi-use hub where it incubates a family of social enterprises and job training programs [18]. These enterprises include a construction company that deconstructs old buildings and salvages materials, a woodworking shop that makes furniture from reclaimed wood, an urban agriculture initiative, and a solar panel installation training program [18]. Each social enterprise has an “entrepreneurial president” and hires local unemployed people, who also get on-the-job training and education through a 33-6-3 model (33 hours work, 6 hours class, 3 hours mentorship per week) [18]. This innovative model blends business with workforce development and has earned national attention. Concurrently, on 14th Street West, RenewAll and partners have facilitated the opening of several new businesses since 2017 (at least four new businesses, including boutiques and eateries, have started on that street [18]), organized regular street festivals and markets, commissioned murals and streetscape improvements, and established an Arts & Culture District. They even acquired a row of historic buildings to create a future artisan market and history museum [18]. All of these efforts were supported by small grants (NEA arts grant, a HUD “Love Your Block” grant, etc.) and lots of volunteerism.

These case studies – from a tiny farm town to a large city to a neighborhood – all demonstrate that entrepreneurship can be the common thread in revitalizing economies of any size. Whether it’s a purely private-sector approach (Ord’s small businesses), a public-private partnership (Buffalo’s startups), or a social enterprise model (Huntington’s WestEnd), the essence is empowering people to create, and building structures that support their creations. Each community found solutions tailored to its context, but also relied on some shared elements: visionary local leadership, external funding or expertise leveraged wisely, and a focus on long-term ecosystem building instead of quick fixes. These examples serve as inspiration and provide practical lessons for other communities embarking on their own Main Street revitalization journeys.

Recommendations and Actionable Insights for Stakeholders

Revitalizing Main Street through entrepreneurship is a team effort. Different stakeholders – policymakers, community leaders, investors, educators, and entrepreneurs themselves – each have a role to play. Below are targeted recommendations and insights for each group, informed by the analysis above:

Policymakers (Federal and State):

1. Prioritize Entrepreneurship in Economic Development Plans: Shift the focus from solely attracting big external employers to growing your own. Embed support for small businesses and startups as a pillar in economic strategies at state and federal levels (as the National Governors Association urges, make entrepreneurship a priority for a stronger economy [17]).

2. Improve Access to Capital: Expand and innovate funding programs for small businesses. This could include increasing SBA loan program reach (especially microloans and community advantage loans for underserved areas), supporting state-run seed funds or angel networks (possibly via federal matching funds), and enhancing tax incentives for investors who back Main Street businesses (e.g., extending tax credits for investing in rural or distressed areas). Removing barriers in banking regulations to allow more flexible community lending and crowdfunding can also help fill financing gaps.

3. Reduce Regulatory Burdens: Conduct a “startup audit” of regulations – identify licenses, permits, or rules that impose unnecessary costs on new businesses (without clear health/safety benefits) and streamline or eliminate them. For example, simplify home-based business regulations, allow reasonable cottage food production, and revisit stringent occupational licensing that isn’t justified. At the federal level, continue to refine initiatives like the IRS safe harbor for deducting startup expenses, and ensure labor and healthcare policies consider the needs of the self-employed and micro-businesses (so that starting a business doesn’t mean losing affordable healthcare or running afoul of labor rules designed for large firms).

4. Invest in Infrastructure and Placemaking: Channel federal and state infrastructure dollars to projects that directly benefit Main Streets – such as downtown broadband installation, transportation improvements (transit stations, parking, complete streets) that increase foot traffic, and renovation of historic commercial buildings (through grants or tax credits). Even small investments like streetscape grants or technical assistance for towns to implement placemaking can yield a high return in enabling local commerce.

5. Leverage Education and Workforce Systems: Integrate entrepreneurship training into educational programs. Federally, continue supporting programs like the Small Business Innovation Research (SBIR) for tech startups and expand youth entrepreneurship initiatives (e.g., competitions, apprenticeships). States can encourage community colleges and universities to offer incubators or accelerators open to the public, and to direct some extension services toward small business support (similar to agricultural extension, but for local enterprise). Ensure workforce development funds can be used to help individuals transitioning to self-employment or starting a business, not only for traditional job placement.

Local Government and Community Leaders:

1. Build a Collaborative Main Street Organization: Organize a downtown/Main Street committee or organization if one doesn’t exist, bringing together small business owners, city officials, chambers of commerce, and volunteers. Use the proven Main Street Four-Point Approach (organization, promotion, design, economic vitality) to structure revitalization efforts [27]. Seek accreditation or guidance from Main Street America if helpful. This group can spearhead events, beautification, and act as a one-stop liaison for entrepreneurs interested in downtown.

2. Establish Local Incentives and Support Programs: Create a toolbox of local incentives: small façade improvement grants or low-interest loan pools (possibly funded via a local development corporation or CDFI) to help entrepreneurs fix up buildings; rent subsidy or pop-up shop programs to fill vacancies; property tax abatements for a few years for new businesses that open in targeted areas. Even modest incentives can tip the balance in attracting a new business. Additionally, consider a local procurement policy to “buy local” for city needs, giving local suppliers and contractors a chance to compete.

3. Streamline Permitting and Cut Red Tape Locally: Make your city hall “small business friendly.” This means having clear, simple guidelines for starting common business types, reducing wait times for inspections and permits, and assigning an ombudsman or navigator to assist new entrepreneurs through the process. For example, create a step-by-step startup guide for your city and put it online. Harmonize regulations so that it’s easier to open a business downtown – e.g., flexible signage rules, allowances for outdoor seating, and mixed-use zoning that lets entrepreneurs live above their shop.

4. Invest in Quality of Place: Allocate budget and effort to making Main Street an attractive place to be. This could involve improving lighting, sidewalks, and cleanliness; adding planters, benches, and public art; and ensuring safety through community policing or ambassadors. Placemaking improvements increase foot traffic and dwell time, directly benefiting businesses. Furthermore, support programming that brings people downtown – farmers markets, holiday festivals, live music, art walks – often these can be organized in partnership with civic groups or the Main Street organization. As seen in rural towns, regular events keep downtowns active and give entrepreneurs more customers [6].

5. Empower Underserved Entrepreneurs: Make sure revitalization efforts are inclusive. Reach out to underrepresented groups – for instance, host information sessions in diverse neighborhoods about how to start a business and what resources are available. If your community has immigrant populations, consider language assistance or partnering with organizations that serve those communities to encourage immigrant-owned startups (remember, immigrants often start a significant share of Main Street businesses [13]). Similarly, create youth entrepreneurship programs (like business idea contests in high school or summer entrepreneur bootcamps) to inspire the next generation and possibly curb youth outmigration by showing them they can build a future locally.

Investors and Financial Institutions:

1. Engage with CDFIs and Local Loan Funds: If you’re a bank or investor, partner with Community Development Financial Institutions (CDFIs) and local revolving loan funds that focus on small businesses. These entities often have pipelines of promising entrepreneurs in need of modest capital (microloans, etc.). By providing loan capital or loan guarantees, you can support more deals that conventional underwriting might pass over. Banks can also meet Community Reinvestment Act goals by supporting such programs, which in turn revitalizes the community that is your customer base.

2. Consider Place-Based Investing: Explore the creation of local investment vehicles, like a community venture fund or an “Opportunity Zone” fund that specifically targets Main Street businesses (not just real estate). As seen with Buffalo’s 43North and other contests, even equity investors can find opportunities in non-traditional locations when properly incentivized [11]. Impact investors might particularly focus on social enterprises in distressed communities (e.g., Coalfield Development’s enterprises in Huntington demonstrate viable triple-bottom-line businesses [18]). Look at models like community crowdfunding (e.g., using platforms that allow locals to invest small amounts in a business for a revenue share) – this both raises capital and builds a built-in loyal customer base.

3. Provide Flexible Financing Products: Many Main Street businesses need smaller loans or lines of credit that don’t fit typical commercial lending criteria. Banks and credit unions can design products for this niche – for example, a “startup line of credit” underwritten more on personal credit/history and business plan viability, or partnering with fintech lenders to refer borrowers who fall below your cutoff. Some banks have begun offering credit based on cash-flow lending (using community data) rather than collateral, which can help asset-light startups. Also, consider lease-to-own arrangements or financing for equipment that new local manufacturers or restaurants might need. Be open to character-based lending – if a borrower lacks collateral but has community support and a solid plan, they might still be a worthy risk.

4. Support Technical Assistance: Recognize that many small entrepreneurs need more than money – they need guidance to become credit-ready or investment-ready. Financial institutions can sponsor or participate in local technical assistance programs: for instance, funding a workshop series on financial literacy and business bookkeeping for new business owners, or providing mentorship (a banker on your team might advise a small retail startup on managing cash flow). When businesses get this help, they are more likely to succeed and repay loans, creating a virtuous cycle.

5. Long-Term Vision: Be patient and think long-term. Revitalizing a community can take years, and the ROI on local investments may not be immediate. However, the payoff in stability and growth of the local market is real. As more small businesses thrive, they create reliable banking customers and a healthier local economy. Consider the big picture: investing in ten small businesses that each hire 5 people has as much community impact as one large business hiring 50 – and perhaps more resilience, since if one fails, the others still carry on. Diversify your local portfolio and don’t underestimate the innovative capacity of entrepreneurs just because they’re on a small town Main Street instead of Silicon Valley.

Educators, Nonprofits, and Ecosystem Builders:

1. Integrate Entrepreneurship in Education: Schools (K-12 and higher ed) should expose students to entrepreneurship as a career path. This can be through curricular programs like Junior Achievement, entrepreneurship majors/minors, or experiential learning – e.g., having students help real local businesses with projects. Community colleges can offer rapid reskilling programs that help displaced workers start businesses (like a certificate in business fundamentals or trades combined with small business management). Extension programs (like those run by land-grant universities) could expand beyond agriculture to include “rural entrepreneurship extension,” providing coaching in small communities. The goal is to create an entrepreneurial mindset early – studies show regions with higher rates of local business ownership often have mentorship and examples that inspire others.

2. Foster Networking and Mentorship: As an ecosystem builder (chamber of commerce, nonprofit, etc.), facilitate networks where entrepreneurs can learn from each other and from experts. This could mean hosting monthly entrepreneur meetups, creating a mentorship program that pairs new entrepreneurs with seasoned ones, or establishing sector-specific roundtables (e.g., a local makers’ network, or a tourism business network). When entrepreneurs share knowledge – about everything from how to navigate city permits to how to use social media marketing – it raises the competence of the entire community. It also builds social capital, which can lead to collaborations (like joint promotions or shared space) that strengthen Main Street.

3. Provide Incubation and Workspace Solutions: Nonprofits and local development agencies can help set up incubators, accelerators, or co-working spaces in the community. These don’t have to be high-tech; a kitchen incubator for food businesses, a small workshop with shared tools for artisans, or a co-working office downtown can lower startup costs for entrepreneurs. Many towns have found success turning underutilized buildings (old schools, libraries, factories) into multi-tenant entrepreneur centers. Look for grants or corporate partners to cover initial costs, and make the space affordable and rich in support services (like high-speed internet, a makerspace, or conference rooms). For example, if your town has a lot of craftspeople, a makerspace with 3D printers and woodworking tools could spark new product businesses.

4. Research and Advocacy: Continuously gather data on your local entrepreneurship landscape to identify gaps and progress. Track metrics like number of new businesses, jobs created, occupancy rates on Main Street, etc. Use success stories and data to advocate for continued support from local government and donors. If you notice, say, that minority-owned businesses are underrepresented, convene stakeholders to address it (maybe start a minority business council or secure funding for targeted programs). Be the voice that reminds the community and officials that small businesses are big business when it comes to impact – citing facts like small firms contributing the majority of new jobs [2] and significant GDP share. This helps sustain political will and funding for revitalization initiatives.

5. Embrace Inclusive and Social Entrepreneurship: Encourage forms of entrepreneurship that explicitly aim to solve community challenges. This could be supporting the formation of cooperatives (for instance, if a local grocery closed, help the community start a co-op market), or nurturing social enterprises (businesses that hire the hard-to-employ or provide social services sustainably). The Huntington case showed that social enterprises can attract substantial outside grants and resources while tackling local problems [18]. Nonprofits are well-positioned to incubate such models by blending mission with market principles.

Aspiring Entrepreneurs and Small Business Owners:

1. Leverage Local Resources: Don’t go it alone. Seek out your nearest Small Business Development Center or community college business program for free mentoring on your business plan. Connect with the chamber of commerce or Main Street organization – they often have information on local grants, storefront opportunities, or training workshops. If you’re in a rural area, see if there are state or federal programs targeting rural businesses (such as USDA Rural Development grants or SBA microloans). Many communities now have makerspaces, innovation hubs, or online networks (like a Facebook group for local entrepreneurs) – tap into these for advice and support.

2. Start Small, Then Grow: It’s often wise to start with a lean approach. Perhaps test your product or service at a farmers’ market, online, or as a pop-up before committing to a full storefront or large inventory. This lets you validate demand with lower risk. Once you have traction, don’t be afraid to scale up and hire – even one or two employees can increase your capacity significantly. Remember that survival rates are higher than the myths – about 70% of new businesses make it past two years [20]. With planning and adaptability, your odds of success are better than coin-flip. Utilize modern tools (social media, e-commerce, cloud software) to extend your reach beyond just the walk-in traffic, giving you multiple revenue streams.

3. Collaborate with Fellow Businesses: Main Street is a community, not a zero-sum game. Coordinate with other local businesses on promotions (e.g., a downtown coupon book, or cross-advertising each other’s shops). If you’re retail, stay open later on event nights to capture crowds. Join or form a business association to collectively voice needs to the city. Perhaps organize a “small business Saturday” crawl or a holiday festival together – these can draw people from a wider radius. Also consider group purchasing or sharing services; for instance, several restaurants might share the cost of a social media marketing specialist, or retailers could pool orders to get bulk discounts from suppliers. Collaboration can reduce costs and increase visibility for all.

4. Engage with the Community: Be more than a storefront – be a community hub. Successful Main Street entrepreneurs often wear multiple hats: they volunteer, they sponsor little leagues, they attend town meetings. This boosts your business’s profile and goodwill. If possible, use locally sourced inputs – it strengthens the local economic web and endears you to customers who notice you buy from the local farm or printer. Solicit customer feedback and adapt to community needs (maybe people want a place to gather in the morning, so you start offering coffee and hosting meetups). When locals feel a business is theirs – part of the community fabric – they will be loyal and supportive.

5. Stay Informed and Be Adaptable: Keep an eye on broader trends that could affect your business. Is a new highway being built that might divert traffic? Is there talk of raising main street rents? Stay engaged with city planning. Also, embrace adaptability and continuous improvement. The pandemic taught many businesses to pivot (e.g., restaurants doing takeout/delivery or retailers doing online sales). The more agile you are in adjusting your model, the more resilient you’ll be. Don’t hesitate to seek out training to improve your skills – whether it’s a quick course on digital marketing or on bookkeeping. Strong business fundamentals plus adaptability are a winning combination.

Conclusion

Main Street America’s revival is underway, fueled by the grit and creativity of entrepreneurs in communities large and small. The past decade has shown that decline is not destiny: with the right support, even towns that lost their factories or have long been written off can build a new economy on the foundation of local enterprise. Small businesses, startups, and social ventures are proving to be powerful engines for job growth, wealth creation, and community renewal – they are, as one study put it, the “lifeblood” of the economy [2] and the soul of our communities. Revitalizing a Main Street is not an overnight task. It requires patience, partnership, and a holistic approach – blending economic measures with community building. But the benefits are multi-fold: a stronger local tax base, reduced poverty as jobs are created, a more vibrant and attractive place to live, and a sense of pride restored among residents. Policymakers must continue to craft enabling environments for entrepreneurs, clearing hurdles and extending support to those with the courage to start a business. Local leaders need to rally stakeholders and keep the momentum going with thoughtful planning and on-the-ground action. Investors and institutions should recognize that investing locally is investing in their own long-term prosperity. And entrepreneurs – the heroes of this story – should know that they are not alone and that communities across the nation are eager to help them succeed.

Revitalizing Main Street America is ultimately about empowering people – giving individuals the opportunity to take an idea, turn it into a business, and in doing so, turn a struggling town into a thriving one. As we’ve seen from Ord to Buffalo to Huntington, one coffee shop, one tech startup, or one social enterprise at a time, Main Streets can be reborn. The recommendations in this report provide a roadmap for stakeholders to accelerate this progress. By working together with focus and creativity, we can ensure that every Main Street – whether in a rural hamlet or an urban neighborhood – has the chance to fulfill its potential as a bustling center of commerce, community, and opportunity. The renaissance of Main Street America is not just a nostalgic ideal; it’s an achievable reality, and entrepreneurship is the spark that will continue to light the way forward.

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