The economics of rural Nevada small businesses in 2025

Provided by the White Pine Chamber of Commerce

Rural Nevada’s small businesses have faced a dynamic and challenging economic landscape so far in 2025. While Nevada’s overall economy shows resilience, rural regions lag behind urban centers, burdened by inflation, reduced tourism, high operating costs and limited access to infrastructure and capital. Yet, opportunities abound for businesses willing to adapt, innovate and leverage available resources.

Nevada’s economy grew by 2.8% in 2024, outperforming many states. However, rural areas have experienced only modest growth of 2.5% since 2018. Key challenges include a significant drop in tourism, with Las Vegas visitor numbers falling nearly 8%. As rural areas often depend on tourism spillover from urban centers, this decline has direct consequences on rural retail, hospitality and gaming revenue.

Inflation remains a top concern. With consumer prices rising 2.9% annually and persistent high interest rates, rural business owners are struggling with increased costs for supplies, transportation and labor. Tariffs on imported goods further aggravate the situation, especially for businesses dependent on global supply chains. Nationally, while the U.S. may avoid a recession, uncertainty around federal trade and energy policy could impact Nevada’s mining and EV sectors — crucial to counties like Nye and Esmeralda. On a positive note, Nevada continues to be recognized for its business-friendly tax policies, and state leadership has pledged to avoid new tax hikes, providing a measure of stability for small enterprises.

Rural small businesses face four major barriers: 

Access to Capital: Many struggle to secure loans, with over half citing financing as a major issue. 

Workforce Shortages: Limited housing and competition from urban employers make it difficult to recruit and retain workers. 

Market Access: Low population density and declining tourism restrict growth. 

Infrastructure Gaps: Limited broadband and transportation networks hinder e-commerce and logistics.

Despite headwinds, rural small businesses can pursue several strategies to build resilience and thrive: Joining chambers of commerce — such as those in White Pine, Elko or Carson Valley — provides low-cost access to training, networking, grant workshops and group purchasing power. These local institutions also offer valuable marketing platforms and can help businesses tap into state programs like the State Small Business Credit Initiative (SSBCI), which offers loans up to $250,000 and free technical assistance.

Reducing dependence on a single revenue source is key. Diversification in revenue streams gives small businesses an edge. Examples of expanding a business can look like: 

E-commerce to expand market reach beyond local limitations. 

New product lines or services, such as online cooking classes or subscription boxes. 

Niche markets, like locally crafted goods inspired by Nevada’s heritage. For example, a Mesquite restaurant might sell locally sourced spice blends online, expanding revenue beyond foot traffic. 

Source locally to offset tariff impacts: To reduce costs and promote community sustainability, businesses can switch to local suppliers. This not only avoids tariff-related price hikes but also strengthens local economies and supports “Made in Nevada” branding. An example of this tactic could look like an Elko hardware store partnering with nearby lumber producers, reducing shipping costs and appealing to locally conscious customers.

Addressing workforce issues in rural areas, such as the community collectively demanding improvements to education standards in their remote school districts, to be a competitive location that drives relocation and investments of potential incoming industry or businesses, carries a positive impact on local small businesses. High-performing schools increase property values, raise a more active and engaged workforce prepared for future jobs and competitive markets, as well as incentivize growth of residential populations, which in turn increases the overall tax base of an area.

Partnering with Workforce Connections to train local employees, offering remote work options where feasible and collaborating with Nevada Rural Housing and local governments to advocate for affordable housing projects near commercial centers also boosts economies and provides a broader consumer base for small businesses. In action, retailers in Lovelock could upskill local youth through partnerships while supporting new housing development to retain talent.

Small businesses can also reduce operating costs with technology: Energy efficiency programs, tech upgrades (like cloud-based inventory systems) and shared resources with other businesses can significantly cut overhead. Nevada SBDC provides guidance on affordable tools and practices. This could look like a café in Winnemucca or gift shop in Ely saving 5 to 10% on costs by using a smart inventory management system.

Using State and Federal Support Programs often carries a stigma of “asking for help,” for which far too many small business owners do not want to admit the need. Nevada’s $6.7 billion in ARPA funds and SSBCI loans can be used for business expansion, infrastructure upgrades or workforce development. Free data from the University of Nevada’s Economic Assessment Program can also support strategic planning. Local chambers of commerce and governments may also have community funding sources to assist small businesses in their objectives.

Strong communities support strong businesses. Collaborating and participating in small business round tables, business fairs and expos leads to connections that prove beneficial. By partnering with schools, nonprofits or other entrepreneurs, rural businesses can co-host events, advocate for infrastructure upgrades and create local traditions that attract tourism and build brand loyalty. While a Tonopah gift shop might organize a craft fair with local artisans, boosting both traffic and community engagement, a larger effort to bring together many leaders and representatives from diverse sectors to discuss the most important factors impacting the local economy might yield substantial positive results.

The economic road ahead in 2025 may seem fraught with obstacles, but with planning, it will be possible. By staying agile, embracing diversification, utilizing state and federal resources and building strong local partnerships, rural Nevada small businesses can not only weather current challenges but emerge stronger and more resilient.