Underdeveloped sources of income expansion

Generally the trend toward effective income generation is accompanied by larger production units employing substantial capital and specializing in increasingly narrower ranges of products. In small villages the limited capital of family farms and businesses contributes to the fragmentation and marginalization of production. Income levels of these businesses are often so low that in reality they are ways of passing time rather than providing employment. Family production units operating at marginal levels with business and family income inseparable are susceptible to the smallest of cash emergencies. Besides, imaginative thinking for future income is inhibited in many smaller communities by the experience of past business failures and a rugged determination to eke out a living from the diminishing of capital. Although small businesses still operate, many others have closed due to retirement or a lack of incentive to continue at a minimal profit. There is no cooperation or organized effort to promote and upgrade commercial life; and many communities grow to depend on outside sources for income, together with only the most convenient, easily accessible local resources. Limited capital prevents the development of local processing so raw materials are sold unprocessed. The absence of local market forces dependence on middlemen services. Locally produced higher quality food is sold and low quality food for local consumption is purchased outside the village. For the most part residents seek services, goods and employment in larger cities. To a large degree the long term trends for many communities are producing a net outflow of income.