The major thesis of this paper is that it is necessary for those people concerned with rural education and small schools to accept 3 challenges--to take full advantage of available rural opportunities, to realize limitations of rural life, and to be aware of responsibilities not only to Rural America but also to an America where there are no divisions between rural and urban communities. Information on small schools was presented in the areas of finances, curriculum, provision of shared services, improvement of teacher quality and performance, improvement in the use of technology, and provision of guidance services in rural schools. It was concluded that some of the major advantages of small schools were the close ties which exist between the student and his home community and the opportunities which exist for more individualized instruction. (PS)