Broadband is an essential tool for communities looking to be competitive in the 21st century economy. Senator Martin Heinrich (D-N.M.), Ranking Member of the Joint Economic Committee, recently hosted a series of roundtables in New Mexico to learn more about how rural and small-town communities think about broadband access and its role in local economic development.
These conversations help build on findings in a recent Joint Economic Committee Report, Investing in Rural America, that outlined some of the challenges rural small businesses face. Insights collected from roundtables shine a light on how national policy issues are felt at the local level and how inclusion in the digital economy can spur economic development in rural communities. Policy makers can use the experiences of New Mexico small business owners to better understand how rural America interacts with online platforms and to amplify the unique benefits broadband can bring to rural entrepreneurs.
Internet Means More than Social Media
More than 30 percent of rural residents still lack access to fast, affordable internet, leaving them disconnected from valuable online resources. Though many small business owners in New Mexico understand the clear benefits of tapping into the digital economy, other community members are more wary.
To address this hesitation, resource providers must focus on building technological literacy among rural residents and small businesses. This process should involve showing entrepreneurs how broadband can provide access to more than just social media, but also to business platforms that can unleash sustainable local economic activity. In addition, broadband expansion should be presented as part of a holistic economic development plan that recognizes many rural communities’ long-standing commitment to the outdoor recreation economy. Smart broadband expansion would empower locals to share their home’s natural assets with a global audience and increase visibility for the state’s vast public lands.
Downtown Alamogordo, New Mexico
Access to Broadband Drives Job Creation
Across New Mexico, small businesses spoke to the importance of building “economic base jobs.” These jobs bring in money and investment from outside New Mexico, usually via exports.
By opening up new markets for small businesses, broadband access is one way to promote economic base development. A growing number of “solopreneurs” in rural communities rely on online marketplaces to sell their products and services. These sales bring in capital from outside the community and ultimately help locals sustain their businesses, support their families, and invest in the local workforce.
Broadband also helps aspiring entrepreneurs spread awareness and build long-term relationships with clients. In Silver City, a local tile manufacturing business that ships its products globally uses high-speed internet to perform market research, advertise its products, and help online customers find storefronts nationwide that carry its unique handmade tiles.
High-Speed Internet Can Accelerate Innovation
Broadband access also allows rural areas to take advantage of the innovation economy’s next set of economic development tools. Without internet, rural families will not be able to exchange valuable ideas and resources with like-minded communities.
In Deming, leaders from multiple New Mexico’s Small Business Development Centers talked about efforts to build “virtual” resource portals and incubators. These portals require a public access point and uninterrupted high-speed internet. With broadband, previously disconnected entrepreneurs would be able to engage with business counselors via a computer and receive real-time guidance.
Broadband will also be instrumental in improving access to health care in rural communities. Small businesses in Carlsbad emphasized that telemedicine and other innovations, including remote surgery, will continue to be crucial for rural communities without a nearby hospital. These critical services can only be made available with reliable, high-speed broadband access.
Looking Ahead
In Investing in Rural America, the Joint Economic Committee explored how broadband can link communities with innovations in a wide variety of sectors, including health care, education, and finance. These innovations are no longer a luxury — they are necessary for economic survival in the 21st century. Congress needs to commit to building out infrastructure in sparsely populated communities that the private sector does not reach. Senator Heinrich recently included legislation in this year’s farm bill that would allow tribes to expand broadband infrastructure without taking on extreme debt.
Broadband access is as important as ever, but small businesses highlighted the need to balance infrastructure development and environmental stewardship. Resource providers like the Small Business Administration need to work with communities to make sure they fully understand the economic benefits of online participation while also tailoring programs to local needs. Doing so will allow rural communities to tap into the economic growth that the digital economy fuels and to share their innovative products and services with customers across the globe.
