Texas Regional Economic Recovery Initiative for Small and Rural Towns

BACKGROUND

In the spring of 2020, in the midst of the COVID pandemic, the IC² Institute launched an extensive, multi-pronged Regional Economic Recovery Initiative to better understand smaller/rural Texas communities and to provide evidence-based recommendations for community planning and economic development. Art Markman, former executive director of the IC² Institute said:

“The damage the coronavirus pandemic has wrought is irretrievable, and it’s now time to plot out a better future amid the economic wreckage. The entire Regional Economic Recovery Initiative provides a mechanism for the University of Texas at Austin to make good on our promise that ‘We are Texas.’ This is the time to plan for a more resilient future.”

Shopkeeper closing shop during COVID

RESEARCH AND PROGRAMS

The initiative included four key activities:

1. Survey Research and Analysis – Assisted by 95 UT students, researchers at the Bureau of Business Research surveyed 7000 Texas residents of small cities and towns across the state. The survey asked participants to rate their satisfaction with 18 different community assets ranging from broadband and K-12 education to housing affordability, healthcare, and the local cost of living. The survey also asked participants about the appeal of a set of economic development and quality-of-life improvement options for their communities and then to make trade-offs in an allocation exercise by investing hypothetical investment dollars among the various options.

The findings illuminate the challenges facing those on rural and small-town Texas as they work to improve infrastructure, retain and attract young workers, and enhance quality of life. The research helped shape discussions among community leaders and culminated in two published papers:

2. The State of The State of Texas Report – Researchers compiled an overview of the economic challenges and opportunities in Texas as of September, 2020. The resulting 116-page, State of the State of Texas Report contains detailed information about the impact of COVID19 on Texas. Among the findings:

Public sector job loss in Texas was one of the highest in the nation. These losses were felt mainly at the local level.
Vast areas of Texas are more than a 30-minute drive to an inpatient medical facility capable of treating COVID-19.
Business ownership declined dramatically, especially for Black-owned businesses (41% decline) and HIspanic-owned businesses (32% decline).
Rural communities faced more vulnerability during the pandemic. Among the factors responsible: older populations, distance to medical facilities, less diversified economies, supply-chain issues, less digital connectivity.

3. Regional XLR8 – The IC² Institute (virtually) convened 150 leaders from 58 counties across all five regions of Texas in the fall of 2020. The virtual sessions (plus “homework” regularly assigned to participants) took the form of an “accelerator” for communities wanting to rethink their recovery, take strategic action, and build resilience. During the six-week program, community leaders focused on developing ideas for new opportunity and growth in their communities.

“Regional XLR8 encouraged communities to work together to solve problems and enhance the resilience of their communities and economies. Many of the participants said that they are happy to have made new contacts, and, after going through the program, they are much more interested in working with other communities. Learning from leaders in other town was a key benefit of the program!” – Gregory Pogue, Deputy Executive Director, IC² Institute

map of texas

4. George Kozmetsky Memorial Student Challenge – The IC² Institute coordinated two student challenges in which student teams addressed economic development issues in a number of Texas communities. Students conducted community research and explored novel solutions to problems put forth by local community leaders.

“I am thrilled that I could contribute to the economy and progress of a city in Texas, even as a freshman in college! The exposure to tackling a real-life issue in a limited amount of time in a collaborative setting has been invaluable for my personal and professional growth.” – Student Participant

RELATED RESEARCH ON SMALL TOWN ECONOMIC DEVELOPMENT

From 2019 through 2022, as we continued to focus on rural Texas, the IC² Institute sponsored high-impact faculty research projects that supported economic development in small towns. Here are a few examples:

A Roadmap to Rural Innovation for the Texas Hill Country – research coordinated by Stephen Pedigo
Stephen F. Austin University: An Anchor Institution in Deep East Texas – research coordinated by Stephen Pedigo
The City Residents Do Not Get Involved: Understanding Barriers to Participation in a Small Texas Boomtown – research coordinated by Clay Spinuzzi
Rural Business Creation Rooted in Surprising Factors – research coordinated by Varun Rai and Mark Hand

IN THE NEWS

Improving Quality of Life in Small and Rural Communities

KXAN story on IC²: What smaller Texas communities can learn from startups about COVID-19 economic recovery

A New Incubator in Boerne: Entrepreneurship in Small Towns

Cover of Asset-Based Community Participation report

Asset-Based, Sustainable Local Economic Development: Using Community Participation to Improve Quality of Life Across Rural, Small-Town, and Urban Communities

journal article