In small towns and big cities across Minnesota and Wisconsin, entrepreneurship is alive and well — and, in many cases, thriving more in rural communities than in urban ones.
That’s a finding from the Midwest Entrepreneurial Climate Survey, a joint effort between University of Minnesota Extension and University of Wisconsin-Madison. Conducted in summer 2024, the survey invited nearly 10,000 households to share their experiences and perceptions of entrepreneurship.
Surprising findings
Results revealed unexpected insight, says Neil Linscheid, Extension specialist in entrepreneurship. “For me, the most surprising thing was the gap between the support people thought they should get — versus what they thought they would actually get — for starting a business,” he says. “I really didn't expect to see such big differences across, or even within, the different groups.”
Comparing would versus should support levels
This expectation gap was especially evident at the state level. Only 11% of respondents believed that state government would provide strong support for a new business, while more than 40% felt it should. Across both rural and urban communities, families were seen as the most reliable source of support.
Linscheid was also struck by rural entrepreneurship rates. “Entrepreneurship rates are actually higher in rural areas than in urban ones,” he says. “About 15% more rural folks said they had owned a business compared to urban respondents.”
Capturing more data
Tessa Conroy of University of Wisconsin–Madison says the survey was designed to capture what traditional economic data often misses. “We saw a need to better understand the social forces that shape entrepreneurship — the attitudes and behaviors at a community level that can influence an individual’s decision to start a business — especially in rural communities,” she explains. “The results highlight the relatively high level of trust and care that rural residents experience in their communities.”
Yet the data also reveals a paradox. Rural residents start more businesses, but are significantly less likely to say their communities offer ample opportunity. Only about 19% of rural respondents felt their town had more opportunities than other places, compared to 35% of urban respondents.
Connecting with resources
For Logan Gruber, owner of Blue Ox Websites & Marketing in Sauk Centre, Minnesota, embracing an entrepreneurial mindset is personal. He purchased his digital marketing firm in 2024 and rebranded it in 2026. “I've always wanted to be my own boss,” he says. “I've always had that spirit.”
Gruber describes himself as a rural entrepreneur and credits local connections for helping him succeed. “My family, friends and neighbors were all very supportive and vital to my morale,” he says, along with networking through the Rotary Club, Chamber of Commerce and Small Business Administration. Gruber also paired with a SCORE mentor, someone who is typically a retired or active business owner or manager who provides free business advice to entrepreneurs.
Making room for growth
While rural communities in Minnesota and Wisconsin are deeply entrepreneurial, it is clear there is also room for growth — clearer visibility of support, stronger public-sector engagement and broader efforts to make communities feel welcoming and opportunity-rich for those willing to take the leap.
“Ask for help from everyone,” says Gruber. “So many people are willing to help if you just ask.”