An entrepreneurial climate is more important than access to financing and banks in encouraging self-employment growth, according to rural economists.
"Because people who get laid off may end up working for themselves, self-employment can be a good news, bad news situation," said Stephan Goetz, professor of agricultural and regional economics, Penn State, and director of the Northeast Regional Center for Rural Development. "However, the self-employed do tend to support other nearby businesses and that can lead to employment growth and income growth across the county."