During the summer, South Dakota Rural Enterprise conducted a multi-sector, statewide analysis of the financial and technical assistance needs of the development industry. Research consultant Adina Abramowitz, Consulting for Change, assisted SD Rural Enterprise in planning and implementing the study. Information gathered from development officials, bankers and other leaders around the state was presented at the organization’s July meeting.

In addition to an online survey and interviews, SD Rural Enterprise asked Abramowitz to conduct five “listening sessions” in Rapid City, Aberdeen, Brookings, Yankton and Oacoma. These Feedback Coffee Breaks gave local citizens the opportunity to hear preliminary findings of the survey and voice reactions, concerns and fresh ideas for enhancing the economy of their region and the state.

The discussions examined growth patterns in South Dakota, along with demographic breakouts and population migration, all vital elements in understanding the potential of the state to meet the economic needs of the future. While our state’s population is growing faster than the US as a whole, the growth is geographically uneven. Using the state’s six planning districts as convenient geographic identification zones, the survey found that the fastest- growing district is growing at a rate of 8.5%, while a population decrease of 5.39% was recorded in another district.

Similar inequities in business growth were measured, with three separate economies emerging. The first, and fastest growing, includes the areas around Sioux Falls and Rapid City, the second in the regions around the “trade centers,” including Aberdeen, Brookings, Yankton, etc. A third economic reality exists in “frontier” areas that are more spread out with smaller population centers, including the reservations.

Fortunately, the state’s economic development groups, based in communities, regional revolving loan funds and the planning districts, are bringing financial and technical assistance resources to bear on the challenges posed by South Dakota’s population shifts. The SD Rural Enterprise survey reports a deployment total of 84.9% of available funding from groups accessing the SD Rural Enterprise Capital Investment Fund, a total of $68.3 million in loans to businesses around the state. Further, the organizations reported a delinquency rate of just 3.7%—a remarkably low number.

The state’s community development organizations are having an impact. The 2007 survey shows that 54.3% of the 46 responders use impact tracking, and report 269 businesses financed, creating 2,803 permanent jobs while retaining another 1,172 permanent jobs. Twelve Capital Investment Fund borrowers reported 204 businesses financed, creating 2,314 permanent jobs and retaining 972 additional permanent jobs. Financial resources are working for South Dakota’s businesses.

South Dakota Rural Enterprise plays a vital role in efforts to maintain a strong economy in our state. The survey showed that 23 organizations want to access capital from SD Rural Enterprise, including ten Capital Investment Fund borrowers. Another 16 mentioned SD Rural Enterprise as a current or recent provider of development services to their organization, 7 cited Rural Enterprise as an organization to which they often make referrals, and 5 listed Rural Enterprise as their primary source of debt capital.

The survey also found the areas where organizations need additional technical assistance, and SD Rural Enterprise is working to develop programs to address those needs. In all, the survey revealed a pattern of progress, promise and potential for South Dakota, and gave SD Rural Enterprise a roadmap for reaching a successful and economically viable future for our communities.

2007 SUMMER REPORT
	Market research shows progress, promise & potential
	"Enterprise" fuels the spirit of SD business
	Author presents workshop to Rural Enterprise board
	Microenterprise program begins to take shape
	Capital Investment Fund is working for SD
	Meadowlark Retreat
	Helping communities & organizations to GROW
	Program creates value-added communities

Adina Abramowitz presents market research information to South Dakota Rural Enterprise board members at the July meeting in Chamberlain