Giving a voice to rural entrepreneurs

As a fifth generation southern Minnesotan, I like to say that I “bleed rural.” Not only have I lived here my entire life, but I have had the great fortune of serving rural Minnesota throughout my career — first during my time in the U.S. Congress, and now as president and CEO of Southern Minnesota Initiative Foundation (SMIF).
Living in rural Minnesota comes with many benefits that have tied me to this place for so long. Even in the relatively larger cities of our region, like Owatonna where I live, there is a neighborly feel — I like that I can stop by the grocery store or the local brewery and run into people I know. We’re surrounded by natural beauty — from bluffs to lakes — and the cost of living is much lower than in larger cities. In fact, a 2020 report from the Center for Rural Policy and Development found that wages in rural Minnesota can go further in meeting the cost of living compared to the seven-county metro area.
Despite the many benefits of living here, there are challenges, too, and it can feel like the “rural voice” is diminished or misunderstood. The Rural Voice, a statewide series supported by SMIF, three other Minnesota Initiative Foundations, Compeer Financial and Otto Bremer Trust, was created to act as a town hall style forum for community members to discuss and be heard about topics that are top of mind to those living in Greater Minnesota: workforce, health care, mental health, social isolation, and business development. Hosted by Kari Miller from Minnesota Public Radio, the most recent Rural Voice event was held at Schell’s Brewery in New Ulm about what it takes to build a business in rural Minnesota.
One of the things that we heard in this meeting is that rural entrepreneurs need mentors, financial resources, education and networks to support growth. Fortunately, SMIF, in addition to our partners at the Small Business Administration, SCORE, the Small Business Development Centers, Region Nine Development Commission and local chambers of commerce (to name a few), is well-positioned to help entrepreneurs in all of those areas, either through our own programming or as a connector to our partners. At SMIF, we offer lending and equity opportunities, technical assistance, and peer networks, supporting nearly 1,000 entrepreneurs annually.
Another thing that stood out to me during this session was the number of young people who either decided to stay in rural Minnesota or moved here. For some, work from home opportunities have allowed them to live where they want to live instead of where their work is located. For others, like Tristan Blue, owner of Big Hitter Games in Lafayette, rural living has drawn them to the region to start businesses. Tristan shared that his desire to be closer to his family brought him from Minneapolis and Milwaukee to the Mankato area in 2014.
When the pandemic began, he began reevaluating his career (he had been working in the service and construction industries while also performing as a musician). Tristan used the time as an opportunity to explore his childhood dream of creating video games which eventually turned into a business. Due to the online accessibility of partnerships for indie game developers, Tristan found rural Minnesota an easy place to locate his business. When he and his wife had their first child in 2021, they were ready to buy a home and were motivated to move to Lafayette due to the affordability, proximity to his wife’s job in St. Peter, the geography and history of the area, and the small-town experience for raising a family. This is one example of many entrepreneurs moving to the region that I have heard in recent years.
I was also struck by the number of newer businesses that draw tourists to rural Minnesota — breweries, distilleries, wineries. Those types of businesses, combined with the natural beauty of our region, and our charming downtowns, can culminate in an economic boost for small towns. According to Explore Minnesota Tourism’s Leisure and Hospitality Industry report, our 20-county southern Minnesota region generated $2.7 billion in gross sales and $93 million in state sales tax in 2021, supporting 28,000 private sector jobs. At SMIF, we have seen the success of tourism businesses through many of our loan clients — from Pleasant Grove Pizza Farm in Waseca to Black Frost Distilling in New Ulm. I’m convinced that the more people who visit here, the more people who will want to move here.
Whether you move here to start a business, or are an entrepreneur already living in southern Minnesota, SMIF is here to play a supporting role. Entrepreneurs are going to keep our corner of the state vibrant — they will create the jobs of the future. Personally, there is no place I would rather be than in rural Minnesota.
You can listen to a recording of the Rural Voice event at mprnews.org or watch a video of the event at ruralvoice.org.
As always, I welcome your comments and questions. You can reach me at timp@smifoundation.org or 507-455-3215.
 
Tim Penny is the president & CEO of Southern Minnesota Initiative Foundation. Tim represented Minnesota’s First Congressional District in the U.S. House of Representatives from 1982 — 1994.
 
SMIF, a donor-supported foundation, invests for economic growth in the 20 counties of south central and southeastern Minnesota. The Foundation has provided more than $162 million in grants, loans and programming within the region during the past 37 years. SMIF’s key interests include economic and early childhood development and community vitality. To learn more about our work and mission, visit www.smifoundation.org.