Beyond connectivity: The role of broadband in rural economic growth and resilience

The Center on Rural Innovation (CORI) revealed groundbreaking evidence that fiber-fed broadband experiences enabled by local providers in rural communities significantly boost income, entrepreneurship, and business investment. “Beyond Connectivity: The Role of Broadband in Rural Economic Growth and Resilience” compares economic data from three types of rural communities: underserved communities, communities with access to basic broadband services, and communities served by smaller fiber broadband providers offering access to experiences that go beyond fast internet. The study finds a more significant economic impact in communities that are better connected and have access to additional services that allow users to effectively leverage that connection, while comparable underserved communities experience economic stagnation.

The study finds that rural counties with high broadband adoption rates of over 80% have significant advantages over those with low usage, including:

• 213% higher business growth. Rural counties with high broadband use see more businesses opening, while similar counties with low broadband utilization are losing businesses. On average, rural areas with low broadband usage lose three or more businesses each year. This drop in business activity likely means fewer jobs for residents, leading to a noticeable population decline.
• 10% higher self-employment growth. Broadband access can significantly lower barriers to starting a business for rural residents by connecting them to global markets and essential resources, like access to banks, small business loans and venture capital. Broadband enables entrepreneurs to conduct market research and leverage digital marketing strategies, expanding their customer base and facilitating e-commerce. It supports remote work and collaboration, widening the pool of potential employees and reducing reliance on physical proximity to urban centers. Rural communities with higher broadband adoption rates have seen significantly more business startups.
• 44% higher GDP growth. High broadband use in rural communities creates an environment that fosters local businesses, triggering a chain reaction of growth and innovation synonymous with a stronger and more dynamic economy. Access to more broadband services delivered by local broadband service providers improves the economic dynamism of rural communities.
• 18% higher per capita income growth. Counties in the high broadband treatment group (with broadband adoption rates greater than 80% and broadband coverage predominantly from a small broadband service provider) saw per capita income grow 18% from 2020-2022. This amounts to an increase of nearly $500 per person each year on average for county residents.