The recent decline in farm-related income in rural areas has prompted important questions about potential new sources of off-farm employment. The issue closely relates to vocational education in rural areas. This report examines sources of rural job growth and discusses the role of entrepreneurship in long-range rural economic development. The goals of economic development go beyond jobs and income. Highly specialized economies are more vulnerable to socio-political changes, but sustained economic progress is dependent on the continued development of new products and services from many sources, notably small young firms. Five general strategies for promoting income and employment growth are: (1) increase the efficiency of existing firms; (2) encourage business formation; (3) attract new basic employers; (4) improve the ability to capture dollars; and (5) increase aids from broader governments. Actions taken to support one strategy are likely to support another. Policymakers might assist of existing firms; (2) encourage business formation; (3) attract new basic employers; (4) improve the ability to capture dollars; and (5) increase aids from broader governments. Actions taken to support one strategy are likely to support another. Policymakers might assist entrepreneurs by educating the public, encouraging entrepreneurship, and forming clubs, business incubators, or educational centers for potential entrepreneurs. Community leaders can also make funding more accessible by forming nonbank capital groups, linking entrepreneurs to available capital sources, or encouraging banks to make more "high-risk" loans. State and national policy issues, such as tax laws or public investment return rates, might also be examined for ways to lift barriers to entrepreneurial activity. The document concludes that a range of locally developed strategies might stimulate entrepreneurship in rural communities, offering hope for expanding existing businesses, attracting new ones, and drawing tax dollars. (TES)