A September 2024 peer-reviewed study by the nonprofit Center on Rural Innovation (CORI) underscores the importance of broadband access, focusing on rural connectivity as it relates to income, business investment and entrepreneurship.

“Beyond Connectivity: The Role of Broadband in Rural Economic Growth and Resilience” analyzes post-pandemic data from 2020 to 2022. Specifically, it examines economic data from three types of rural communities: the underserved, those with access to basic broadband service and those served by small fiber broadband providers that offer more than merely fast internet.

Not only does the study note the lag in broadband investment in rural America as compared with metropolitan areas (which contributes to economic disparities between rural and urban/suburban communities), but it also found greater economic impact in those communities that are better connected, with access to additional services that enable users to leverage their connection. Underserved communities were found to be economically stagnant.

Additional findings in the study indicate that rural areas with broadband adoption rates of more than 80% had advantages over those with lower use, such as:

• 213% higher business growth. Rural counties with high broadband use saw more businesses opening; those with low broadband utilization are losing businesses—an average of three or more each year.
• 10% higher self-employment growth. By connecting users to global markets and resources, broadband access enables users to select banks and acquire small business loans more easily. Users can also expand their customer base, facilitate e-commerce, conduct market research and enable remote work.
• 44% higher GDP growth. Increased broadband use fosters local businesses, which leads to growth and a stronger economy.
• 18% higher per capita income growth. Counties in the study’s high broadband treatment group saw per capita income grow 18% from 2020–2022. This is an average annual increase of nearly $500 per person.
  

The study highlights the importance of expanding broadband access and encouraging its use to foster economic development. Often considered essential infrastructure, broadband access most likely has a significant effect on the potential for rural communities to engage in economic opportunities.

According to the study, authored by economist Amanda Weinstein, director of research, knowledge and evaluation at CORI, “Notably, we find evidence that existing residents are the primary beneficiaries of these economic gains (rather than new arrivals). In stark contrast, areas with the lowest levels of broadband utilization have lower income growth rates and are more likely to experience business closures and population decline.”