POV
Don’t call it a comeback: How entrepreneurs are reviving America’s small towns
August 6, 2024
It’s easy to romanticize small towns with their charming storefronts, tree-lined streets, and neighbors that remember your kids’ birthdays.
What’s harder is keeping them alive. Abandoned lots, deserted main streets, and brain drain have become an emblem of some small towns across America in recent decades. Headlines over the past 10 years point to a slow, agonizing death.
Tales of this death have been greatly exaggerated. Small towns are booming, outpacing city growth as entrepreneurs ditch big cities to launch their business. Nearly half (48%) of Americans now prefer small-town or rural living, up 9% since 2018. It’s a renaissance thanks to the courage of entrepreneurs. Last year, new businesses launched in non-urban areas at a 20% faster rate than in urban areas, according to Shopify's data.
“This is the Golden Age of entrepreneurship,” says Harley Finkelstein, the president of Shopify. “The problem we’re solving here at Shopify is to make commerce better for everyone—to make entrepreneurship more common, easy, and accessible.”
A second chance for a Texas town
Lockhart, Texas—30 miles outside Austin and home to 15,000—has a bustling main square that attracts locals and tourists alike. This wasn’t always the case. In the late ‘80s, Lockhart experienced a boom and bust, halving the population and shuttering beloved mom-and-pop shops.
“It’s just a tremendous challenge in small-town America, not just Lockhart, not just Texas. Our square has seen its bad times. But we’re survivors. And we’ve shown that throughout our history through the power of entrepreneurship,” says Lew White, the mayor of Lockhart.
Entrepreneurs understood the town for what it was: a place ripe with promise. They bought homes, had children, and opened businesses.
Chuck Charnichart, the James Beard-nominated pitmaster, followed her taste buds to Lockhart—the BBQ capital of Texas. (If you don’t take our word for it, then check this out). She visited frequently for BBQ classes, and found a sense of belonging.
“People in Lockhart were quick to ask about me and what my dreams were. They wanted to know how they could help,” says Chuck. In 2023, she opened Barbs B Q with two friends. On any given day, you can find a line out the door of patrons eager for their signature brisket.
Now businesses like Plum Creek Records, Fiddler’s Green, Stampworthy Goods, Mill Scale Metalworks, and Barbs B Q are defining features of the town. And, Shopify is the silent but powerful chassis that lies beneath Lockhart’s small business engine.
A fresh start in North Carolina
Lockhart is one chapter in a larger story. In Matthews, North Carolina—home to 30,000 people— new businesses are cropping up, helmed by entrepreneurs attracted to the town’s scenic charm.
Buffalo Jackson Trading Company, a leather goods brand, was founded by Xan Hood. He has lived in Matthews for more than 12 years with his young family.
“We decided it was a great place to open a store. Small businesses are the foundation of Matthews from the coffee shops to the restaurants to the 120-year-old hardware store. The business owners care about each other.”
The pandemic saw Xan close his physical storefront and move online to stay afloat—now 98% of sales happen on Shopify. Since then, his relationships in Matthews—and his brand—kept growing. Small-town businesses don't sacrifice growth for comfort; they thrive on both.
Moving online helped him stay in Matthews. His small town became his super power. In Matthews, he finds the support often elusive in big cities, forges meaningful customer relationships, and contributes to his community. He believes the notion that bright ideas need the big city is a hollow myth.
“You don’t need to go to New York City to share your products with the world. You don’t need to give up what matters to you. You can stay rooted in your place and find your audience through ecommerce," says Xan.
Xan isn’t alone. The founders of Bear Food, a gourmet nut company, Bella Tunno, a baby accessories brand, and countless others are all in his close community of Matthews entrepreneurs on Shopify.
A homecoming in Appalachia
For Nancy Bruns, the founder of J.Q. Dickinson Salt Works, moving to Malden, West Virginia was a homecoming. Raised in Appalachia, she left but then ultimately returned to her roots. Her family had lived in Appalachia as salt-makers for seven generations. In 2013, Nancy came back to her family’s 200-year-old farm to revive the family trade.
“I wanted to come back to where it all began to start this business. The beauty of this state is a part of me, and the community is very supportive. I feel like I have a whole state of brand ambassadors.”
Now she spends her time harvesting rare salts in the Kanawha Valley and hiking in the mountains with her dog, Butterbean. Her farm hosts community events like farm-to-table feasts, 200-person weddings, and educational tours. She employs 13 people and features products from other local crafters in her online store, including Shopify-powered brands like Hernshaw Farms Mushrooms, Appalachian Botanical Company, and Appalachian Beekeeping Collective.
“Our philosophy is to keep as much money in Appalachia as possible," she says. "That idea is so important in this era of big box stores. We need to keep things local and empower local artisans.”
The power of community and commerce
Small businesses in towns across the U.S. are unifying their communities through commerce. And their numbers are increasing at a steady clip: from 2022 to 2023, the number of new Shopify stores grew by nearly 59% in Texas, 48% in North Carolina, and 68% in West Virginia. These entrepreneurs are taking risks and building the future they want. They are also reinvesting in their community—48% of the revenue generated by independent businesses stays in the community, compared to just 13.8% from chains.
Small towns are heritage keepers and economic engines. Their lifeblood? Local businesses. There’s no place like home—because there’s no place like Barbs B Q, Buffalo Jackson Trading, or J.Q. Dickinson.
Ambition is everywhere, but opportunity is not. With the right tools and the right doers, opportunity is reaching more places and putting them on the map.