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Local developers as virtual entrepreneurs - do difficult surroundings need initiating interventions?

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  • Mauri Laukkanen
  • Hannu Niittykangas

Abstract

This paper discusses the preconditions and strategies of local development and turnaround in difficult surroundings such as peripheral rural communities. Its key premise is that local decision makers' beliefs of how such small economies function and of ‘proper’ interventions are critical. Such thought patterns were studied among Finnish rural municipality directors (RMDs), using comparative cause mapping. The findings show that while private initiative, entrepreneurship, is regarded as key for development, prevalent views of entrepreneurship, especially firm formation, are unsophisticated, stressing personal traits and social factors such as supportive cultures and role models. Paralleling these views, the current developmental doctrine is indirect, focused on resource provision and implying passive waiting for entrepreneurs to emerge before developers ‘can’ act. Considering their bleak perspectives, the paper argues that communities with weak autonomous turnaround capabilities need more interventionist strategies than those built-in the dominant paradigm, whereas current resource-providing models may be suitable in more benevolent environments. To augment the dominant thinking, the paper suggests an initiating ‘business-based development model’ as a parallel approach for a more effective local economic development in difficult surroundings.

Suggested Citation

  • Mauri Laukkanen & Hannu Niittykangas, 2003. "Local developers as virtual entrepreneurs - do difficult surroundings need initiating interventions?," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 15(4), pages 309-331, October.
  • Handle: RePEc:taf:entreg:v:15:y:2003:i:4:p:309-331
    DOI: 10.1080/0898562022000029278
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    Citations

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    Cited by:

    1. Tello, Mario D., 2010. "From national to local economic development: theoretical issues," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    2. Nadine Levratto & Denis Carré & Messaoud Zouikri, 2013. "Dynamique des territoires et création d’entreprises : une analyse des départements français en 2008. Local dynamics and firms creation: an analysis of French departments in 2008," EconomiX Working Papers 2013-18, University of Paris Nanterre, EconomiX.
    3. Nicola Meccheri & Gianluigi Pelloni, 2003. "On the role of human capital and instruments of assistance for rural entrepeneurship and development: evidence from a case study in mountainous Italy," Quaderni di Dipartimento 0, Department of Statistics, University of Bologna.
    4. Elisabeth Sundin, 2011. "Entrepreneurship and social and community care," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 5(3), pages 212-222, August.
    5. Godlewska Malgorzata & Mackiewicz Marta, 2023. "Local context of local government participation in the innovation networks: Evidence from Poland," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 59(3), pages 243-263, September.
    6. Elisabeth Sundin, 2011. "Entrepreneurship and social and community care," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing, vol. 5(2), pages 212-222, April.
    7. N. Meccheri & G. Pelloni, 2004. "On the Role of Human Capital and Instruments of Assistance for Rural Entrepreneurship and Development: Evidence from A Case Study Mountainous Italy," Working Papers 504, Dipartimento Scienze Economiche, Universita' di Bologna.
    8. Nadine Levratto & Denis Carré & Messaoud Zouikri, 2013. "Dynamique des territoires et création d'entreprises : une analyse des départements français en 2008," Working Papers halshs-00840365, HAL.
    9. Małgorzata Wosiek & Adam Czudec, 2019. "The Relationship between the Entrepreneurship and the Local Environment: Evidence from Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 262-289.

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