Entrepreneurship, Broadband, and Gender: Evidence from Establishment Births in Rural America

Abstract

Broadband access may have important implications for establishment births in rural areas, which feature thinner markets. Broadband may be especially important for rural nonemployer businesses, particularly those without a storefront, for access to nontraditional market channels. As women are more likely to run these types of small businesses, we further expect that broadband may have important implications for women-led businesses. With an effective instrumental variable approach, we find evidence that broadband access is a key factor leading to a higher establishment birth rate across business size and gender in rural areas. This paper identifies the largest effects on nonemployer, women-led and remote rural establishments.