Recent debates over postal service modernization, consolidation, and service performance have focused largely on improving operational efficiency and financial performance. Much less attention has been paid to the broader economic benefits of the postal network, including how universal service may support local economic activity and contribute to patterns of economic growth. These considerations may be especially relevant in rural and less dense areas, where private carriers offer fewer local access points and the postal network often provides the only nearby retail mailing and shipping infrastructure. This study examines one dimension of that relationship by analyzing how access to postal infrastructure is associated with small-business activity in rural counties, treating the postal network as part of the physical infrastructure that supports everyday economic activity.
Small businesses play a central role in the U.S. economy. Firms with fewer than 500 employees account for the vast majority of U.S. businesses and employ nearly half of the private-sector workforce, while also serving as a primary source of job creation. More than three-quarters of these firms are very small: Non-employer and owner-operated businesses account for the majority of business establishments nationwide and are particularly prevalent in service-oriented sectors such as professional services, transportation, real estate, health care, and retail trade. Operating at a small scale, these businesses are more likely to rely on shared external infrastructure rather than in-house administrative, logistics, or distribution systems. As a result, differences in the local infrastructure environment can shape patterns of business entry, persistence, and local activity.
Add your first comment to this post