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)

Business incubators can help fledgling firms get off the ground by providing business services and rental space, at below-market costs, for a business's first few years. The payoff for the community is more jobs. Concentrated until recently in urban areas, incubators are now succeeding in rural areas too. (JHZ)

Describes rural implementation of the Empowerment Zones and Enterprise Communities program, which combines flexible long-term financing with strategic planning and performance benchmarking to empower impoverished communities to address structural problems comprehensively. Impressive 3-year results include job creation; improved community services;…