$2 trillion in economic growth may hide in ‘micropolitan communities’

Investing in “micropolitan communities” could generate $2 trillion in economic output for the United States, according to a Heartland Forward and McKinsey Institute for Economic Mobility report. The report defines micropolitans as cities with a population between 10,000 and 49,999 people. While these small cities are currently under-invested in, the report finds that funding them could lead to an incredible economic boost. 

“The 20 states in the middle of the country have 62% of the 538 micropolitans in the United States, according to the report. It’s also home to 39% of the country’s population and generates about 35% of GDP — making it the world’s third largest economy — but cities there get only 10% of the total U.S. venture capital investment and 29% of fixed capital lending, the report states,” Stephanie Kanowitz writes for Smart Cities Dive. "Shrinking the investment gap so the region’s share of the GDP matches its share of the population could lead to that $2 trillion bump, the report states."

Not all micropolitans are on equal footing: the report finds that they differ widely in terms of economic foundation and ability to coordinate economic development actions from states, community organizations and local governments. The micropolitans that are successful at managing economic development are best suited for additional investment, the report states.