Self Employment in Rural Nebraska

by Karen Wylie

in Entrepreneurship, Rural Economy

rural-business-self employmentA University of Nebraska sociologist has found that the decreasing rural population of Nebraska is changing the way business is conducted in the state.

Randy Cantrell with the Nebraska University Rural Initiative, reports that in most rural counties of Nebraska self-employment accounts for 18 to 30 percent of jobs and pretty much all job growth.

His findings made me wonder how Nebraska compared with other states:

Cantrell thinks self-employment is on the rise in rural Nebraska. But he hasn’t been able to verify the details through his research, namely an annual rural poll that surveys rural residents on well-being, policy and work issues. He says the rural poll might be asking the wrong question.

In the past, people have been asked whether they have a business. Cantrell said that question may leave out those who still get a paycheck from an employer but who technically are private contractors. He used the example of inbound telemarketers, who he thinks can rightfully assert that they have a business.

As rural areas continue to see their populations fall, Cantrell said, employers may feel more pressure to shift away from the traditional way of doing business and rely on private contractors.

“There’s still a demand for service,” he said, “but not enough to support a business of several employees.”

This study also reported a continued decline in those age 20 and younger living in rural areas. That age group has declined in all but seven Nebraska counties, with one (Cherry County) experiencing a 20 percent drop in the 20 and under age group from 2000 to 2007.

How does your State and rural area compare to these statistics from Nebraska?

And what impact does changing population and employment statistics have for you and your business?

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