Neo-endogenous development initiatives tackling rural depopulation. The case of LEADER in Spain's Andalusian region

This study examines the LEADER implementation’s impact on enhancing rural entrepreneurship resilience against depopulation in Andalusia (Spain) with a neo-endogenous approach. Utilising a mixed-methods approach, the research combines the analysis of surveys and semi-structured interviews of two contrasting groups: the LEADER fund applicants who failed to benefit from LEADER support, and LEADER fund promoters who were supported by the LEADER programme before. For a broader analysis, the Local Action Group (LAG) facilitators are also interviewed. The research advances neo-endogenous development theory by showing how the LEADER approach, through local embeddedness, capacity-building, and external networking, enhances rural entrepreneurship resilience against depopulation in Andalusia, while revealing sector-based inequalities and structural barriers that limit its transformative potential. The findings show that beyond EU funding, LAGs strengthen local entrepreneurs’ resilience by fostering local embeddedness, building capacities, and expanding external networks. In this sense, contrary to LEADER applicants, LEADER promoters confirm optimistic views against depopulation. Yet, this impact depends on the entity type and activity sector of the entrepreneurs. The results underline LEADER’s potential to reshape perceptions of rural areas, transforming them into attractive spaces for investment. The research also points to policy and practical implications of certain structural limitations hindering the effectiveness of LAGs.