Nonmanufacturing business as a growth alternative in nonmetropolitan areas

Abstract

The continuing need for more employment opportunities in nonmetropolitan areas, combined with the diminishing ability of manufacturing to produce the opportunities, and changing desires and attitudes with respect to growth, indicate a need for job creation strategies not geared solely to manufacturing. A suggested alternative is selected nonmanufacturing business. However, to date, little information on this economic sector exists for nonmetropolitan areas. This paper represents an initial step in providing this information.

The nonmanufacturing businesses play both import substitution and export roles. Almost 27 percent of the businesses were primarily exporters. Larger, nonlocally owned businesses were more apt to be exporters.

With respect to location factors, the businesses surveyed identified community, market and labor factors as the most important in determining a favorable location.