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Do rural roads promote inclusive entrepreneurship?

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  • Brahma, Ananyo
  • Soundararajan, Vidhya

Abstract

This paper investigates whether rural road infrastructure can foster inclusive entrepreneurship. Using enterprise data from India, we examine how a national rural road construction program, which connected previously isolated villages, affects entrepreneurship across different social groups. Our findings reveal that new feeder roads increase the number of service enterprises for all caste categories, including marginalized groups. However, manufacturing entrepreneurship increases only among the non-marginalized caste groups. For marginalized groups, the increase in entrepreneurship appears to be a response to a relative decline in wage employment opportunities following road construction. Formal finance and education infrastructure serve as key channels through which road connectivity fosters entrepreneurship.

Suggested Citation

  • Brahma, Ananyo & Soundararajan, Vidhya, 2026. "Do rural roads promote inclusive entrepreneurship?," Journal of Economic Behavior & Organization, Elsevier, vol. 241(C).
    • Handle: RePEc:eee:jeborg:v:241:y:2026:i:c:s0167268125004986
    DOI: 10.1016/j.jebo.2025.107381
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    Keywords

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    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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