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While I have addressed the issue of the poverty mindset in previous columns, one can’t discuss it too often as it is a problem in many rural and even urban communities.  I am often reminded of the saying that goes, “Many saying something can’t be done are interrupted by those doing it”.  We could also use Jim Rohn’s quote when he once said, "Your life does not get better by chance, it gets better by change." These two principles apply not only to individuals but also to communities seeking revitalization. While each community faces their unique challenges, a common obstacle is what we might call a 'poverty mindset' - a very limiting and debilitating belief system that hinders progress and innovation.

The poverty mindset in community development isn't necessarily about financial poverty, but rather a collective mentality that resists change and innovation due to prolonged exposure to economic decline. This mindset can manifest in various ways.  It can be a resistance to technological adoption, risk aversion in public investments, pessimism about growth potential, or a reluctance to embrace new economic models

Research will show that communities clinging to outdated practices often face severe economic consequences.  A study by the National Main Street Center found that for every $1 invested in main street revitalization programs, communities saw $26.43 in new investment.  The U.S. Environmental Protection Agency reports that compact downtown development can save 38% to 50% on upfront costs for new construction of roads, sewers, and other infrastructure compared to conventional suburban development.

Failing to adapt can lead to population decline, the Brookings Institution reports that nearly half of America's small cities and towns are shrinking.  Business closures, according to the U.S. Small Business Administration, are about 20% of small businesses fail within the first year, often due to inability to adapt to changing market conditions.  The Urban Institute notes that declining cities often face a shrinking tax base, further limiting their ability to invest in revitalization.

Overcoming the poverty mindset requires a shift towards a growth-oriented, "can-do" attitude backed by strategic planning and data-driven decision-making. Communities can make this shift by embracing technology, a study by Deloitte found that small businesses using digital tools are 3x more likely to experience customer growth. These digital tools might be digital payment systems, online marketing, and e-commerce solutions for local businesses.

Education and entrepreneurship can also make a huge impact.  The Lumina Foundation reports that increasing post-secondary attainment by just 1% can increase a region's GDP by 0.5%. Knowing this, partnering with local colleges to create targeted workforce training programs. According to the Kauffman Foundation, new businesses account for nearly all net new job creation in the U.S. economy.  Knowing this, communities need to establish small business incubators and provide mentorship programs for startups.

Many communities have successfully overcome the poverty mindset, achieving remarkable transformations.  Greenville, South Carolina, once a declining textile town, invested in downtown revitalization, attracting over $1 billion in private investment and becoming a model for mid-sized city renewal.  Paducah, Kentucky through its Artist Relocation Program, transformed a blighted neighborhood into a thriving arts district, generating over $30 million in private investment.

Overcoming a poverty mindset requires more than just optimism; it demands a commitment to data-driven strategies and calculated risk-taking. Communities must conduct thorough market analyses to identify growth opportunities. They can engage in participatory planning to ensure community buy-in. They can set measurable goals and regularly assess progress. They must be willing to pilot innovative programs and learn from both successes and failures. Lastly, they must cultivate partnerships with private sector, non-profits, and educational institutions to assist them along the way.

By embracing change and adopting a growth mindset, communities can break free from the cycle of decline and create vibrant, sustainable local economies. The choice is clear: change and adapt, or risk being left behind in a rapidly evolving economic landscape.  As we face the challenges of the 21st century, the time for transformation is now. With vision, strategy, and a positive, can-do attitude, even the most struggling communities can chart a path to revitalization and prosperity.

John Newby is a nationally recognized Columnist, Speaker, & Publisher. He consults with Chambers, Communities, Business & Media. His “Building Main Street, not Wall Street,” column appears in 60+ newspapers and media outlets. As founder of Truly-Local, he assists chambers, communities, media, and businesses in creating synergies that build vibrant communities. He can be reached at: John@Truly-Local.org.