Rural residents are outpacing their urban peers in business ownership and startups.
For leaders in Minnesota and Wisconsin, gaining insight into how residents and entrepreneurs view the economic landscape is not always easy. Traditional data sources often provide broad trends but fall short of capturing local perspectives, the lived experiences of entrepreneurs, or the differences between rural and urban communities. The Midwest Entrepreneurial Climate Survey, a joint project with the University of Wisconsin-Madison, was designed to fill that gap. In this data snapshot, we highlight the first of two visualizations from the survey.
Rural and urban entrepreneurs
Figure 1. Comparison of the proportion of rural and urban entrepreneurs
Last summer, we asked respondents whether they had ever owned, started, or discontinued a business. Anyone who answered “yes” to one or more of these questions was considered an entrepreneur. Overall, 41.3% of participants identified as entrepreneurs. Rural residents were significantly more likely to do so, with 52% reporting entrepreneurial activity compared to 37% in urban areas.
Figure 2. Business ownership, startup, and closures: rural vs. urban
A closer look reveals what drives this gap. Nearly 15% more rural residents reported owning a business, and almost 15% more had started one. This trend also appears among those who have discontinued a business, though the difference is smaller, with rural respondents still reporting a higher share. These findings may challenge the common perception that rural areas are less economically dynamic. The data instead points to a different story. Rural communities are actively contributing to entrepreneurship and show higher rates of business ownership and startups.
About the Midwest Entrepreneurial Climate Survey
Nearly 10,000 households across Minnesota and Wisconsin were invited to participate in the Midwest Entrepreneurial Climate Survey in the summer of 2024. Rural areas were intentionally oversampled to allow for meaningful comparisons, and the survey achieved a 23.6% response rate. The survey had three primary goals: to identify entrepreneurs and capture their perspectives for follow-up research; to compare rural and urban differences in perceptions of entrepreneurial support, business climate, and community interactions; and to explore how perceived support, attitudes, and social behaviors shape entrepreneurial activity.
More information will be shared about this project over the coming months.
