Another effect is that the closing of "mom and pop" stores following the appearance of a store leads to the closing of local businesses that previously supplied those stores including: wholesalers, transporters, logistics providers, accountants, lawyers and others. The authors state that "by displacing the local class of entrepreneurs, the Wal-Mart chain also destroys local leadership capacity." They encourage community leaders to think about programs and policies in anticipation of helping those displaced by the arrival of the chain.
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Dr. Stephan J. Goetz is a Professor of Agricultural and Regional Economics at The Pennsylvania State University. Before coming to Penn State in 1999, he served on the faculty at the University of Kentucky for nine years with research and teaching responsibilities in economic development. Dr. Goetz is available for questions and interviews.
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