Analysis of a Small Business Development Center’s Entrepreneurial Training Program and Counseling Services for Rural and Urban Entrepreneurs in Wisconsin

Abstract

Rural entrepreneurs face unique contextual factors that influence the business formation process. While urban entrepreneurship receives greater attention than new venture creation in rural settings, growing research indicates that founders in less populated regions may benefit from specialized support. Entrepreneurship education and training programs have emerged as a way to support rural entrepreneurs, though research on the impact of existing training programs is limited. Using the theory of guided preparation, this study evaluated business formation and capital acquisition following participation in an entrepreneurial training program and utilization of counseling services by the Small Business Development Center program for rural entrepreneurs in the state of Wisconsin from 2014–2021. This study found that the increased likelihood of starting a business and acquiring capital following participation in the entrepreneurial training program and utilization of counseling services is comparable for urban and rural entrepreneurs. The results imply that the guided preparation services offered by Wisconsin SBDC regional centers are effective in improving rural business startup rates and capital acquisition.