news

Washington, D.C.— Today, the House Small Business Committee heard firsthand from small business owners on how digital technology is shaping the success of small firms in rural parts of America. From working to increase participation in the online marketplace to protecting small firms from cyberattacks, Committee Members discussed how Congress can act to expand the opportunities available to rural small firms in the digital era.

“Whether it’s utilizing the latest app to advertise a product or engaging in the sharing economy by renting out a work space online, there is no doubt that digital technology has revolutionized the way entrepreneurs are looking to build, grow, and manage a successful business,” said Committee Chairwoman Nydia M. Velázquez (D-NY). “Yet, in many rural areas throughout this nation, factors such as the absence of reliable broadband, threaten to hold back an entire subset of entrepreneurs.”     

According to U.S. Census data, only 17 percent of businesses are located in rural areas despite 97 percent of the nation being classified as rural. By embracing digital engagement, Main Street firms are experiencing greater sales both locally and globally. In today’s hearing, Members probed witnesses on the unique challenges that keep many rural small firms from engaging in digital commerce.

Among the panel of witnesses were two small business owners, Bill Ingersoll, owner of Bikes, Trikes, and Quads in Congressman Antonio Delgado’s district in Sloansville, New York and Afton Stout, owner of My Dinosaur Dreams, a small business in Congresswoman Abby Finkenauer’s district in State Center, Iowa. Both entrepreneurs spoke to their experiences using digital marketplaces to sell and advertise their products.

“Living in rural upstate New York, I would not be able to use eBay if I didn’t have access to high-speed and affordable broadband,” said Mr. Ingersoll. “Unfortunately, broadband reliance and even phone connectivity continue to be constant issues for our company. Rural broadband is essential to ensuring that rural small business owners and entrepreneurs can take advantage of the latest technologies and reach customers around the world, no matter where they live in our country. We need real investment in improving and expanding our rural communications infrastructure so that businesses like mine can take advantage of innovative tools and marketplaces like eBay.”

“Starting out, most of my sales were online with roughly 10% from local in person sales,” said Ms. Stout. “Since then, I’ve had customers from all over the world, including France and Germany. With a platform like Etsy, I’m able to ship beautiful paper flowers made in Iowa to international buyers that truly value my work.”

“By increasing the quality of connectivity, calibrating the skills required by businesses with how we prepare the American workforce, maximizing exposure to digital literacy programs for small business owners, and reducing the cost of competing in an e-commerce ecosystem, small businesses in rural America could realize benefits far greater than they have in the past,” said Mr. Dana Connors President, Maine State Chamber of Commerce. “Simply, digital tools and technologies are critical to rural small businesses in Maine and across the country. Unlocking the digital potential in rural America is important for American small businesses and critical to future U.S. economic growth.”

“Digital tools, platforms, and marketplaces enable small businesses – wherever they may be – to serve customers efficiently with cutting-edge logistics; drive costs down and profits up using cloud-based applications and find new customers with digital advertising and online marketing,” said Jake Ward President, Connected Commerce Council (3C). “Today’s rural small businesses can grow, support their communities, and create more jobs – and Congress should help them.”

“Congress must keep pace with technological advancements by shaping policies that understand the reality of what it takes to operate a successful small business in today’s digitally driven economy,” said Chairwoman Velázquez. “The Committee will use the valuable insights we heard from witnesses today to ensure Congress is making it easier, not harder for rural small firms to harness technology to grow and create jobs.”

For video of today’s hearing, click here.

For witness testimony and other information, click here.

###