October 1, 2026 – The report identifies a persistent gap. The heartland is home to 39 percent of the country’s population and generates roughly 35 percent of U.S. GDP, making it the third largest economy in the world. Yet heartland communities receive only about 10 percent of total U.S. venture capital investment and 29 percent of fixed capital lending. Only 3-7% of philanthropic foundation funding went to rural communities. Narrowing this investment gap could help unlock more of the heartland’s economic potential. If the region’s share of U.S. GDP rose to match its 39 percent share of the population, that would represent an estimated $2 trillion in additional economic output.
“Communities across the heartland have the assets, talent and potential to attract investment. The key is making a clear case for why investors should take a closer look,” said Angie Cooper, President of Heartland Forward. “Our work with the McKinsey Institute for Economic Mobility gives local leaders a practical tool to understand their strengths, identify where to improve and prioritize what to tackle first. We’re putting that research to work to help communities compete for investment, create jobs and drive long-term growth.”
Small communities, also known as micropolitans, sit at the center of the heartland opportunity, with a single core of 10,000 to 50,000 residents and a broader network of rural towns and counties consisting of up to 270,000 residents. More than 60 percent of the nation’s 538 small communities are located in the heartland, where they anchor manufacturing, agriculture, health care, logistics and energy industries and serve as economic hubs for the rural regions around them.
The companion Investment Readiness Guidebook helps communities examine their investment readiness across three areas central to capital decision makers– economics, community and coordination. Together, these areas offer a practical way to understand why communities differ in their ability to attract investment.
- “Economy” looks at the industry base, which often determines resiliency and growth.
- “Community” assets are the current identity, demographics and quality of life.
- “Coordination” assesses whether government, investors and community organizations can align around shared priorities and follow through.
Communities can use the guidebook to work through a three-step readiness review: starting with publicly available data, validating those findings with local stakeholders and then using a guide to place themselves along one of three readiness profiles. The guidebook is not a tool for ranking, but is rather meant to help local leaders validate strengths, identify constraints and prioritize action.
“Strengthening investment readiness across the heartland represents a significant opportunity for the American economy,” said Nora Gardner, Senior Partner at McKinsey & Company. “Our research with Heartland Forward suggests that attracting capital is only part of the equation. Communities also need the economic foundations, community assets and institutional coordination to translate investment into sustained growth. This work provides a practical framework for understanding those conditions and where communities can act.”
The research will help drive Heartland Forward’s Center for Investment Readiness and its goal to work with 30 heartland communities by 2030, helping them attract investment, strengthen their economies and build a foundation for long-term growth.
The Investment Readiness Guidebook is available at https://www.mckinsey.com/institute-for-economic-mobility/our-insights/americas-next-growth-opportunity-an-investment-ready-heartland.
Media contacts:
McKinsey Institute for Economic Mobility
Denvol Haye Jr., Head of Communications, McKinsey Institute for Economic Mobility
About Heartland Forward
Heartland Forward is a non-profit, policy think-and-do tank that turns ideas into action for states and local communities. Our mission is to accelerate economic growth, change the narrative about the middle of the country and generate $500 million of economic impact to the heartland by 2030. We do this through applied research, community-driven programs, policy and convenings—focusing on regional competitiveness, talent pipeline and health and wellness.
About the McKinsey Institute for Economic Mobility
The McKinsey Institute for Economic Mobility is an institute within McKinsey & Company dedicated to advancing inclusive economic growth and expanding economic opportunity. The institute develops research and insights, convenes leaders across sectors and advances practical approaches to some of the most consequential challenges affecting economic mobility. Through this work, IEM helps institutions better understand barriers to economic opportunity and translate insights into action.