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PD&R, U.S. Department of Housing and Urban Development - Office of Policy Development and Research
Expanding the Marketplace and Strengthening Communities in Rural Minnesota

Small firms and retail stores in rural Minnesota are feeling the effects of marketplace globalization on their businesses and communities. Business competition is no longer defined by local and regional boundaries but by the unrestricted market of electronic commerce. To help small businesses and potential entrepreneurs compete in the global marketplace and strengthen the area's traditional business districts, the University of Minnesota Extension Service created and now administers the Access Minnesota Main Street (AMMS) program.

"One of our main goals is to increase the leadership capacity of community members and teach them the pros and cons of the Internet and e-commerce," states Bill Bomash, project director of AMMS. This goal is accomplished through an online, hands-on, comprehensive curriculum designed specifically for AMMS. The 4-week course is conducted in a computer lab in each participating city. "The curriculum is very interactive and is meant for a small business owner to see the potential of using the Internet for their own operations," says Bomash.

Adding to local capacity. In small towns like Stillwater, Minnesota, some local merchants are finding it increasingly difficult to survive by relying only on local customers. Often business owners do not wish to live in larger metropolitan areas, preferring to raise their families in small-town environments like Stillwater, says Bomash. To accomplish this, business owners and entrepreneurs are maintaining or establishing locations in communities where they want to live, serving local customers, and reaching out to a larger regional, national, or global market through e-commerce. "This is probably the most common story that we hear from our participants," says Bomash. By using this technique, some business owners are able to maintain a comfortable lifestyle and still increase the market share and profitability of their company, adding to the stability of local jobs and commerce.

Business owners are using the opportunity to enhance their Web presence and to find time to talk, learn, and in some cases establish partnerships with other participants. A local orchard owner attended one of the AMMS courses to find a way to increase his agritourism business. Through the networking opportunity provided by the class, the participant found a classmate who was a farmer and was willing to work with him to create a zoo at the orchard and market it to local school groups.

"An increased presence on the Internet and a realization of how to effectively promote their business can have a dramatic result in a business," says Bomash. Some companies have been reluctant to increase their Web presence, but businesses with both a physical facility and a Web site still appear interested in learning how they can incorporate the Internet into their business plan, says Bomash.

Learning the basic principles. Participants in the e-commerce class learn a wide range of topics, including:

  • Electronic commerce basics.
  • Finding business information and services online.
  • Exploring e-commerce Web sites.
  • Planning your Web site.
  • Promoting your Web site.
  • Developing your Internet business plan.

Course participants have a wide range of experience with computers and the Internet. "The coursework is very hands on and interactive," says Bomash. Most students begin the course with at least some basic computer knowledge. Many students take the course to learn the technical Internet language that enables them to make an informed decision when hiring a professional Web designer. "The course really helps business owners become knowledgeable consumers of the services that are available to them," says Bomash.

Originally started as a pilot program to connect small and medium-sized businesses to the Internet, the program has now been offered in more than 22 Minnesota communities with 6 to 8 other states using the program. "The course has some real potential for use in underserved urban neighborhoods," says Bomash. AMMS enhances rural development by educating local government and business leaders about the potential of e-commerce in their communities. By building the capacity of individuals and groups and by fostering an awareness of the benefits of e-commerce, AMMS hopes to increase dramatically and expand the marketplace for rural goods and services.

Initial program funding came from a U.S. Department of Agriculture grant because the primary focus of the program is rural development. Subsequent program funding is provided through the State of Minnesota Extension Office with additional funding provided by other states, the Small Business Administration, and a $75 to $100 student fee.

For additional information, contact: Bill Bomash, Project Director, Access Minnesota Main Street Program, University of Minnesota Extension Service, (612) 625-8776.

Or visit: Access Minnesota Main Street website: www.extension.umn.edu/mainstreet.


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