A recent poll by Advance Funds Network (AFN) has revealed that three Alaska cities have been identified among America’s last “handshake economies.”<\/p>\n
The business financing company wanted to explore where businesses were still being built on reputation, relationships, and the kind of trust that doesn’t require a paper trail. Juneau, Fairbanks, and Wasilla ranked in the top 18 towns across the country.<\/p>\n
Just over 3,000 small business owners were surveyed across the U.S. and Canada in AFN’s quest to uncover the towns and communities where people believed that a handshake still carried real weight. Residents were asked if people in their town were still more likely to do business on a verbal agreement or handshake rather than through written contract.<\/p>\n
Juneau was the highest-ranked out of the three Alaska cities, placing 11th.<\/p>\n
According to AFN, Juneau brings a “frontier-state” version of the handshake economy.<\/p>\n
“Its geography alone creates a more self-contained business culture,” AFN stated. “As a capital city accessible mainly by air or sea, it is not the sort of place where relationships feel endlessly replaceable.”<\/p>\n
AFN added that trust can become practical in an environment were government, tourism, fishing, local services, and neighborhood networks all intersect in a relatively tight civic space.<\/p>\n
“When options are limited and word travels quickly, a handshake still has weight,” AFN stated.<\/p>\n
Fairbanks and Wasilla were ranked 12th and 18th in the country, respectively.<\/p>\n
The findings of the survey revealed that relationships sometimes matter more than paperwork, with nearly a quarter of respondents saying that having done business with someone before is the biggest trust factor, while 22% pointed to a person’s reputation in the community, and 20% said a personal recommendation from someone they trust matters the most.<\/p>\n
Respondents who were nervous about a handshake deal were most concerned about the aftermath if things were to go wrong, with 27% saying that they would worry about having no legal protection and 20% fearing that the other person would change their mind.<\/p>\n
Eighteen percent worried about damaging the relationship if there was a dispute and 15% said that they would be concerned about the work not being completed properly.<\/p>\n
Thirty-two percent of respondents believed that handshake deals have become less common because people are less trusting now, while 20% blamed scams and fraud for making people more cautious.<\/p>\n
However, small business owners still said that the handshake can still be enough in low-risk, community-based situations, with 21% saying its enough for a favor between locals and 20% saying it both works for borrowing or lending tools or equipment and can still apply to a small business partnership.<\/p>\n
“The handshake economy has not disappeared—it has just become more selective,” said Irving Betesh, AFN chief revenue officer. “Small business owners clearly understand the value of contracts, but they also know that trust is often built long before anything is signed.”<\/p>\n
Betesh added that reputation still acts like a form of credit in smaller communities.<\/p>\n
“People remember who follows through, who pays on time, who treats others fairly, and who keeps their word,” he said. “That kind of local trust can be incredibly powerful, particularly for small businesses that depend on repeat relationships and word-of-mouth.”<\/p>\n
The top 10 handshake economies are:<\/p>\n
1. Greeneville, Tennessee<\/p>\n
2. Oxford, Mississippi<\/p>\n
3. Mountain Home, Arkansas<\/p>\n
4. Murray, Kentucky<\/p>\n
5. Boone, North Carolina<\/p>\n
6. Helena, Montana<\/p>\n
7. Danville, Kentucky<\/p>\n
8. Beaufort, South Carolina<\/p>\n
9. Whitefish, Montana<\/p>\n
10. Jasper, Alabama<\/p>\n","protected":false},"excerpt":{"rendered":"
Juneau, Fairbanks, and Wasilla ranked in the top 18 in the country <\/p>\n","protected":false},"author":4933,"featured_media":132827,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4,1077],"tags":[],"class_list":["post-132826","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-top-news"],"yoast_head":"\n