New data show small local firms create less than a third of new jobs in rural areas and are unreliable employment sources because many fail within their first 5 years of business. Local planners should consider mix of corporate affiliates offering potential of many jobs and small independent firms. (NEC)

Through 1987, 10 percent of foreign investment was in nonmetro counties; 44 percent of this was in the South; and 38 percent of nonmetro foreign investment created new jobs (versus 17 percent in metro areas). Foreign investors chose nonmetro areas with low wages, lack of unionization history, good transportation access, and government incentives.…

Describes funding of rural economic development by the Urban Development Action Grants program, 1978-88. Examines program operation, distribution of funds by region and industry, and costs per job created. Suggests that capital subsidy programs that require substantial investment by recipient firms can effectively stimulate rural growth. (SV)