Another Look at Business Accession and Separation Rates in Non-Metropolitan Areas (Manuscripts‪)‬

ABSTRACT Rural areas are generally considered to be challenging for entrepreneurs seeking to begin new businesses due to factors such as lower levels of economic development, scarcity of affordable professional services, and smaller markets. However, some studies have found that small business owners find their locations promote, rather than hinder, success. A previous study of Ohio counties determined that although business accession rates (the number of new businesses compared to the number of current businesses) were higher in metropolitan areas, separation rates (the number of business terminations compared to the number of current businesses) were equal to or even significantly lower in non-metropolitan counties. This study seeks to provide further insight into this issue by examining accession and separation rates in metropolitan and non-metropolitan counties of Mississippi. A greater understanding of these rates may be especially important to lenders or investors assessing the risk of failure of new businesses in rural areas as well as to advisors seeking to improve the economic health of non-metropolitan areas.