Grocery Stores, Broadband, and Belief: A Formula for Small-Town Revival

5 min read

The Power of Local Change

In small towns across America, tangible progress often begins with modest but meaningful investments. When Hermon, a resident in Maine, added a grocery store, dollar store, and bank, the transformation went far beyond convenience. Those businesses created jobs, expanded the local tax base, and kept dollars circulating within the community. Residents who once drove 30 or 45 minutes for essentials could now do so locally, saving them time and reinvesting in their town’s economy.

That shift embodies a central truth of community development: when access to goods and services improves, so does local quality of life. Such investments create a ripple effect of sustainability where commerce, employment, and civic pride reinforce one another.

Small Businesses as Anchors of Local Recovery

The reopening of the Carmel market illustrates how reviving a single business can renew community confidence. Once shuttered for years, its return attracted new customers, nearby vendors, and even prospective entrepreneurs. Small businesses like that market comprise 99.3% of all private-sector employers in Maine and employ more than half of the state’s private workforce (U.S. Small Business Administration, 2023).

A thriving local business doesn’t operate in isolation; it becomes an economic anchor. When Dunkin’ opened in Hermon, it did more than serve coffee. It created new jobs and engaged local suppliers for maintenance, distribution, and logistics. This ripple effect underscores findings from a Brookings Institution study: as manufacturing declines, service-sector businesses increasingly sustain rural economies.

Practical Strategy: Municipal leaders can bolster local entrepreneurship by:

Partnering with Small Business Development Centers (SBDCs) to host grant-writing workshops.
Establishing façade-improvement grants for revitalizing downtown areas.
Launching small co-working spaces or business incubators, fostering start-up collaboration at low cost.

Even modest investments, like a shared workspace, a business mentorship program, can ignite lasting entrepreneurial ecosystems.

Land Use and Thoughtful Growth

Economic development succeeds when supported by strategic land use. Bucksport’s transformation from vacant lots to new housing exemplifies that. Housing, often underestimated, is foundational to business growth: without affordable places to live, workers cannot stay and invest locally.

According to the Maine State Housing Authority (2022), the state’s housing shortage, especially beyond Portland, hinders workforce retention and community stability. Towns that align zoning, utilities, and transportation planning can unlock development that serves residents for decades.

Actionable Solutions for Town Planners:

Simplify permitting to reduce costs and delays for builders.
Introduce mixed-use zoning to combine residential and commercial spaces.
Use infrastructure incentives - like sewer extensions or broadband access - to attract private investment.

When towns align land use with economic strategy, they not only expand housing but strengthen schools, utilities, and tax revenues that fuel long-term vitality.

Infrastructure as the Foundation for Prosperity

Infrastructure is not glamorous, but it’s decisive. Roads, broadband, and water systems enable every other form of local development. When Hermon reduced travel from a 45-minute drive to a 5-minute one, it achieved more than convenience - it redefined regional accessibility.

The Maine Department of Transportation (2023) identifies rural connectivity as a key driver of business investment. A well-paved corridor or stable broadband connection can determine whether a small manufacturer or e-commerce enterprise chooses to locate in town.

Adaptable Funding Solutions:

Apply for Northern Border Regional Commission grants to finance infrastructure in rural counties.
Coordinate public works with county and state agencies for economies of scale.
Prioritize broadband partnerships with private internet providers.

Improving infrastructure translates directly into business attraction, cost reduction, and community well-being.

Workforce Development and Sustainable Growth

Post-pandemic recovery revealed vulnerabilities in rural economies - especially in the trades, hospitality, and service sectors. The Maine Department of Labor (2023) emphasizes the need to reconnect education and employment, specifically through vocational pathways in carpentry, plumbing, and electrical work.

Adaptive Workforce Strategies:

Partner with community colleges to expand apprenticeship programs.
Use Tax Increment Financing (TIF) districts to subsidize job training or workforce housing.
Support regional workforce boards to align employer needs with training pipelines.

With the right planning, towns can cultivate a self-replenishing local workforce that draws young people to stay and contribute to their communities.

Policy Tools and Capacity Building for Local Leaders

Economic revival rarely happens by luck - it’s built through policy and capacity. Mechanisms like TIF districts, revolving loan funds, and business improvement districts allow towns to reinvest revenues into projects that attract jobs, upgrade infrastructure, and fund entrepreneurship.

However, tools alone aren’t enough. Local government capacity - the ability to design, manage, and sustain initiatives - determines success. A full- or part-time economic development coordinator, for instance, can help towns secure grants and facilitate partnerships with regional councils.

Practical Leadership Takeaways:

Invest in staff training for grant writing and strategic planning.
Join regional economic development partnerships to share expertise.
Create annual reports to track community development progress and publicize results.

Building the Future- One Local Investment at a Time

Communities thrive when they believe in their potential and act on it collectively. Every new grocery store, housing development, or small café signals confidence in local capacity. By aligning small-business support, infrastructure investment, and workforce development, towns can build sustainable prosperity that keeps dollars and talent close to home.

If you’re a local leader, small business owner, or resident ready to drive change - start small but think long-term. Attend your town’s next planning meeting, propose a community investment project, or mentor a local entrepreneur. Sustainable growth begins not in distant capitals, but around local tables with shared purpose.

Bibliography

Brookings Institution. “Rural America’s Workforce Challenge.” 2021. https://www.brookings.edu/research/rural-americas-workforce-challenge.
Maine Department of Labor. “Workforce Development Strategic Plan.” 2023. https://www.maine.gov/labor/wds.
Maine Department of Transportation. “Three-Year Work Plan 2023–2025.” https://www.maine.gov/mdot.
Maine State Housing Authority. “Maine Housing Needs Assessment.” 2022. https://www.mainehousing.org.
U.S. Small Business Administration. “2023 Small Business Profile: Maine.” Office of Advocacy. https://advocacy.sba.gov.