A total of 130 Minnesota employers who had participated in local welfare-to-work partnerships with social service agencies and other community members were interviewed by telephone for their views on welfare reform. (This nonrandom sample was selected by partnership staff.) Differences among rural and urban/suburban employers were examined, and welfare participant and employer views on service needs and barriers to self-sufficiency were compared. Very few differences emerged between urban/suburban and rural employers; however, urban/suburban businesses appeared to be more affected by the tight labor market and were thus more open to flexible hiring policies. Employers identified lack of "soft skills" (general social skills, calling in if one is going to be late or absent, staying on the job despite frustrations, etc.) as the primary barrier to work force participation, while welfare participants cited structural problems such as low wages and lack of education and child care as their primary obstacles to self-sufficiency. Employers considered involvement in partnerships valuable for recruiting employees and believed that partnerships played a role in supporting workers for improved training, retention, and work-life balance. The findings suggested that local partnerships between employers, government, and social service providers can help make welfare reform successful by helping at least some welfare recipients begin to work and become self-sufficient. (Contains 32 tables and 11 references.) (MN)