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Abby Smith, Program Manager at Heartland Forward
This article answers:
Rural and urban communities are evolving in response to economic shifts—but not in the same ways. Differences in funding, infrastructure, and development strategies are widening the divide.
Bridging these divides to build stronger, more inclusive regional ecosystems is possible through regional collaboration, infrastructure investment, and a focus on localized strengths.
Abby Smith, Program Manager for Entrepreneurship and Workforce Development, Heartland Forward in Arkansas, has extensive experience in this area. Heartland Forward is the only policy think tank in the nation completely dedicated to advancing the economy of the 20 states defined as the “heartland,” which geographically includes everything from Texas up through the Dakotas, over to Michigan and Ohio, down to Alabama, and all the states in between.
This diverse set of states has a lot in common but also many differences, specifically as it relates to economic growth. Urban areas see growth through innovation clusters, defined as a concentrated geographic area where a combination of businesses, research institutions, and startups work together to drive innovation, collaboration, and economic growth. They all benefit from shared talent, infrastructure, and investment. Rural communities, on the other hand, experience growth through their specific industry, which anchors their local supply chain.
“Both are vital to economic resilience across the country, but are experienced differently,” Smith said. “When those are put together, it’s regional collaboration. That’s what’s happening. A successful regional collaboration leverages strengths from both areas to drive shared economic growth. That comes from an alignment in infrastructure, workforce development, industry, all coming together for regional prosperity.”
Smith cited an example in North Central Indiana that has been successful in driving this kind of collaboration. WHIN unites 10 rural and urban counties in North Central Indiana, particularly around manufacturing and agriculture coalitions, to accelerate the adoption of IOT technology to help enhance efficiency and productivity.
They are:
“It doesn’t just happen. You have to invest in resources for the region,” Smith said. “Investments are everything to help them grow together. That regional connection ensures that one community is not being left behind.”
To ensure rural and urban communities keep pace together, infrastructure investment is key—both physical and digital. In the Dakotas, workforce shortages are being offset by automation, but that only works if communities have broadband access and can train workers for emerging tech roles.
“It’s 2025,” Smith said. “Technology is emerging fast, and we have to adopt and scale industry 4.0 technologies across manufacturing.”
Regional collaborations, from leveraging partnerships for workforce development as well as retention of the skilled workforce, play a critical piece in the resilience of the supply chain.
Investing in entrepreneurship is another way to enhance economic development in the region. Heartland Forward has trained over a thousand individuals in the heartland with an idea on how to build and scale a sustainable business, but the goal is to ensure they stay local.
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The heart of economic growth is in small business. When founders build in their area, they hire in their area. Ecosystem mapping is one way for entrepreneurs to find resources and make connections, but that requires an investment of time and funding.”
As regional leaders look to the future, collaboration, tech adoption, and workforce innovation will define which communities thrive.
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Every small action creates momentum,” Smith said. “Start with your network, your community, and build from there.”
Webinar Q&A
Throughout the webinar, attendees asked insightful questions. We are sharing them here, along with answers to how urban and rural communities can collaborate to thrive.
Q: What role do local and state governments play in fostering and supporting entrepreneurship?
A: Local and state governments play a critical role in leveling the playing field for entrepreneurs and regional growth.
“Investment is everything,” Smith said, pointing to access to capital as the number one barrier identified by entrepreneurs.
States can support innovation through small business-friendly policies, streamlined regulations, and direct funding or grants. But disparities remain, and many rural communities struggle to access the same funding opportunities as urban counterparts. Closing these gaps requires intentional investment, policy advocacy, and inclusive ecosystem support.
Q: What role do colleges and community colleges have in training the workforce?
A: Colleges and community colleges are community anchors that train the talent pipeline now and for the future in every industry. When industries can connect directly with these institutions to identify gaps and work to fill them, it not only helps grow the industry but the economy in general.
The challenge right now is technology is changing so rapidly that it becomes difficult for places to get something off the ground that’s relevant, not only for right now, but in the future. On-the-ground training of the skilled workforce has to be revisited almost quarterly because it’s changing so quickly, but colleges and community colleges don’t always change or adapt quickly.
Q: Once we train the workforce, how do we incentivize staying in the region?
A: Attracting and retaining talent isn’t just about offering jobs—it’s about creating places where people want to live and grow.
One example Smith highlighted is Tulsa Remote, which provides $10,000 grants to individuals willing to relocate their headquarters to Tulsa. These kinds of incentives help jumpstart local economies and attract entrepreneurs—but longer-term retention requires more.
“You need a place that’s great to work and live,” Smith said. That means offering not only career growth and competitive wages, but also workforce housing, arts and culture, recreation, and strong local amenities.”
Building a sense of place—where people can thrive both professionally and personally—is key to keeping talent rooted in a region.
Q: What role do you see practitioners-consultants, CPAs, attorneys, etc., playing in facilitating entrepreneurial ecosystem effectiveness?
A: They all play a vital role in facilitating an effective and successful entrepreneurial ecosystem.
“We recently surveyed all 1,000+ of the heartland entrepreneurs we funded through the Idea Accelerator program, and funding, legal, and accounting were the top 3 areas they reported needing support in,” Smith said.
These are the individuals in communities that provide the financial guidance, legal compliance support, and strategic growth expertise that ensure entrepreneurs have the structure and resources they need to have a sustainable business that can scale. Many of these stakeholders are also the people serving as mentors guiding startups through early-stage challenges incorporating their business and forming the entity, tax strategy, risk management, and more.
These people are more than just service providers to entrepreneurs; they’re ecosystem builders, too, who provide the necessary support for entrepreneurs to thrive. Having a great business idea is only the beginning for entrepreneurs. Turning that idea into a fully operational, sustainable business comes with challenges that many have never faced before. Having these stakeholders supporting the ecosystem makes all the difference for entrepreneurs being able to move from idea to building a sound business that can position itself to scale.
Q: How are manufacturers using AI and digital tools to stay competitive?
A: Manufacturers across the heartland are increasingly turning to AI and automation to stay competitive—especially in areas facing workforce shortages.
Smith shared that tools like predictive maintenance sensors are helping businesses prevent breakdowns before they happen, reducing downtime and supply chain disruptions. AI is also being used to optimize inventory, streamline operations, and reduce waste, creating cost savings and efficiency gains.
“We’re only scratching the surface of how digital tools will transform manufacturing,” she said. Adopting Industry 4.0 technologies not only enhances operations, but also makes regions more attractive to investors and grantmakers seeking scalable, forward-thinking solutions.
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