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Does Rural Entrepreneurship Pay?

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  • Li Yu
  • Georgeanne M. Artz

Abstract

Rural entrepreneurship can help stimulate local economies by creating local jobs and providing goods and services that improve the quality of life of nearby residents. However, as Reynolds et al. note, rural entrepreneurs can face difficulties through lack of sufficient capital, infrastructure, and access to educated labor. These hardships often result in lower firm entry rates when compared to urban areas and businesses characterized as low-income and low-growth. This leads to the common notion that rural entrepreneurship is necessity driven-entrepreneurs create rural businesses in order to remain in, or relocate to, a rural location.

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  • Li Yu & Georgeanne M. Artz, 2018. "Does Rural Entrepreneurship Pay?," Center for Agricultural and Rural Development (CARD) Publications apr-spring-2018-4, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:apr-spring-2018-4
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    More about this item

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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