While quality of life continues to improve in urban America, there is growing concern that rural America is falling behind, and in harmony with this trend, the continued economic hardships associated with living in the Adirondacks highlight the increased need for tools to promote economic development within the region. While increased access to capital is widely accepted as a necessary improvement in order to create economic development, there are many techniques for increasing this access each with varying levels of success, and the challenge is often to find the most suitable technique for a region given that regions unique characteristics. One of the key characteristics that set the Adirondacks apart from other rural regions is the presence of the Park, and as this paper looks to microfinance as a tool to increase access to capital, the Park must be weighed into every decision.
“Of course, the regulatory issues in the Park preclude a lot of businesses, particularly manufacturing,” said Jim Murphy, the CEO at Adirondack Economic Development Corporation (AEDC), through email (pers. comm., August 12, 2013). Jim also recognized that the Park is at the center of the tourism industry, and this industry is a central cog in the local Adirondack economy. In looking at which industries are promoted by microfinance industries within the Adirondacks, the presence of the Park makes tourism a key feature for economic development, and thus makes it a large draw for capital. For example, many of the micro-enterprises that the AEDC lends to are tied to tourism (J. Murphy, pers. comm., August 12, 2013). However, tourism can’t be the only industry to bring about healthy change, and therefore it is imperative that capital be loaned to small businesses outside the tourist industry as well. It is important to note that increased economic development is only a small part of the picture, as improving health, employment, environmental sustainability, decreased marginalization, and other indicators of increased quality of life are vital to happier, healthier, and generally improved communities. This fact is important because it leads to difficulties in measuring the effectiveness of microfinance in improving communities overall quality of life given the complexities of the issue. Given this, the struggle within the Adirondacks is between environmental preservation and economic development (“Smart Growth,” 2013) and it is imperative that economic development be achieved in a manner that maintains the integrity of the Park, and it is through a symbiotic relationship between development and preservation that quality of life will be improved. To much development with little respect for the Park, or alternatively to much preservation with little respect for the economically disadvantaged communities within the Park degrade the quality of the region, and it is therefore essential that a common ground be reached. These two goals should not be mutually exclusive; as well thought out economic development should be able to achieve both these goals. This paper recognizes these tensions but will focus on promoting small business development as a means to bring increased capital flow to the region. While there is already the presence of microfinance institutions within the Park (J. Murphy, pers. comm., August 12, 2013), such as the AEDC, this paper will closely examine the many tools used by microfinance institutes across the globe and examine the role they could play within the Adirondacks to increase access to capital in a more efficient manner for a broader range of entrepreneurs.