Because schools are often the biggest employers in rural areas, it may make sense for rural schools to initiate economic development partnerships with the community, rather than wait for business to take the initiative, as is more commonly the case with urban school-business partnerships. This booklet reports findings of a national research project to identify innovative school-based business projects. Seven schools were chosen for the range of innovative and promising school-based businesses they represented. A New York high school has a greenhouse, built by students, with annual plant sales of $1,000. In Iowa, high school students are operating a small-jobs subcontracting service. Students in Alaska plan an herbal export business; experience in searching for a feasible enterprise was a substantial part of the educational enterprise. High school students in Georgia operate a child development center and a swine breeding farm that sells feeder pigs. In North Carolina, high school students run a delicatessen with a monthly payroll of $7,000. Students in Indiana have two businesses: a pedigree hog enterprise and a truck and tractor salvage business. A South Dakota high school has altered its curriculum to provide marketing opportunities for students in several classes. The booklet examines legal considerations and enterprise selection and planning, and provides 10 strategies for school-based economic development. (DHP)