1AC proves it solves small business

Olugbenga Ajilore, “Economic Recovery and Business Dynamism in Rural America,” Center for American Progress, 20 February 2020, pp. 4-8, .

Small businesses, especially in the South as well as Rural Middle America, have been struggling to survive in the current economic environment, particularly due to the trends of consolidation and growing market concentration. This increasing concentration, especially in rural communities, has led to the rise of the modern company town, where a community is dominated by a single firm.9 In the agricultural sector, the number of federally inspected slaughterhouses declined 36 percent from 1990 to 2016.10 This rise in concentration has allowed these larger firms to exert market power on smaller firms and on their own employees—a trend that has been especially prevalent in the corn and soybean seed markets: The shares of the four largest firms in each of these two markets have risen to more than 85 percent and more than 76 percent, respectively.11 This increased concentration in rural communities may be a factor in limiting startup activity. The ACP classification system shows that not all rural communities have experienced negative firm growth: Graying America, Hispanic Centers, and Latter-day Saints Enclaves saw an increase in net establishment growth since the Great Recession, although this growth may not be evenly distributed within these communities. Figure 3 maps this trend to show which parts of the country are experiencing significant growth. It specifically maps establishment growth in the counties represented by Graying America, Hispanic Centers, and Latter-day Saints Enclaves. The counties highlighted in dark blue areas show large establishment growth. Many of these communities, especially among Graying America, are recreation-dependent. Research by Meghan Lawson for Headwaters Economics found that recreation counties attract new residents and are experiencing earnings growth.12 In the Hispanic Centers, on the other hand, several of the counties are mining-dependent, primarily in the oil and gas industry. Figure 3 illustrates that it is difficult to apply lessons learned and strategies used in the growing communities to other, more stagnant areas that are not rich in amenities or that lack abundant resources. Immigration can help spur growth in rural areas One lesson that may be applied to all rural communities is the importance of fostering population growth. Data from a 2019 CAP brief show that many nonmetro counties have been experiencing population loss,13 which an EIG report found has adverse impacts on housing markets, government finance, and business dynamism.14 On that last point, communities that are losing population see a decrease in the demand for goods and services and therefore experience greater firm deaths. Figure 4 shows that many of the nonmetro communities that have been experiencing population loss following the Great Recession are in the Southern and Midwestern regions. Many communities have tried to reverse the trend of depopulation through welcoming immigrants, a strategy that can be successful.15 Figure 5 confirms a positive relationship between the net international migration rate and population change over the post-Great Recession period. There are numerous examples of places throughout the country where immigrants have revitalized and benefited rural communities—not just in the agriculture sector but also in manufacturing, health care, tourism, and startups.16 Nebraska, for example, has seen a long influx of Mexican immigrants who are employed at Tyson meatpacking plant, thereby increasing the state’s population and in turn creating a demand for small businesses.17 Certain policies, such as the Heartland Visa, can encourage immigration targeted toward areas experiencing depopulation.18 Communities can also employ certain strategies to create social infrastructure to help immigrants thrive.19 For example, providing English as a second language (ESL) classes or other communication programs for migrants and their children to facilitate dialogue between new migrants and other community members is helpful. Conclusion Since the Great Recession, business growth nationwide has faltered relative to recoveries from previous recessions. Metropolitan counties have recovered in terms of establishment growth, but that recovery has been concentrated in the largest cities.20 In rural communities, the counties that had positive establishment growth were confined to recreation-dependent counties located in Florida and Texas and in the Central Valley of California, as well as communities rich in certain resources. Many rural communities are taking steps to support local businesses through community development corporations and cooperatives, but there may be a role at the federal level to expand the capacity of these organizations. Policymakers need to create a better climate for small businesses to thrive and grow. This is important for all regions but vital for rural communities, as they are also struggling with other problems—such as higher rates of opioid use,21 hospital closures,22 and job loss23—that harm their viability. Until there are efforts at all levels of government to foster small-business growth and rural entrepreneurship, these communities will continue to fall behind the rest of the country.