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On the Role of Human Capital and Instruments of Assistance for Rural Entrepreneurship and Development: Evidence from A Case Study Mountainous Italy

  • N. Meccheri
  • G. Pelloni

Fostering entrepreneurship as a tool for the creation and support of rural businesses is a crucial goal for the integrated development and survival of rural economies. Despite the recognition of entrepreneurship as one of the main determinants of rural economic development, empirical research in this field is relatively sparse and the concept of rural entrepreneurship remains largely unexplored. Thus, there is little evidence on the role and function of rural entrepreneurs, the driving force behind the birth, survival and growth of rural enterprises. The present work, emerging from a larger project on rural entrepreneurship in the mountainous areas of southern Europe, aims to provide a contribution to filling this gap in knowledge. In this paper we present and analyse the results emerging from a questionnaire submitted to a sample of 123 entrepreneurs and rural businesses in a mountainous area of central Italy. The paper focuses on the correlation between entrepreneurial human capital and the adopt on of instruments of assistance, and provides an assessment on their role in stimulating entrepreneurship in the specific area. In the light of the empirical results, we examine and propose potential policies for fostering entrepreneurship and the development of the rural region under study.

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Paper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number 504.

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Date of creation: 2004
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Handle: RePEc:bol:bodewp:504
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  1. Hayne E. Leland and David H. Pyle., 1976. "Informational Asymmetries, Financial Structure, and Financial Intermediation," Research Program in Finance Working Papers 41, University of California at Berkeley.
  2. David Smallbone & David North & Christos Kalantaridis, 1999. "Adapting to peripherality: a study of small rural manufacturing firms in northern England," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 11(2), pages 109-127, April.
  3. Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-27, August.
  4. Heckman, James J., 2000. "Policies to foster human capital," Research in Economics, Elsevier, vol. 54(1), pages 3-56, March.
  5. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
  6. Acemoglu, Daron, 2001. "Credit market imperfections and persistent unemployment," European Economic Review, Elsevier, vol. 45(4-6), pages 665-679, May.
  7. Skuras, Dimitris & Dimara, Efthalia & Vakrou, Aleka, 2000. "The Day after Grant-Aid: Business Development Schemes for Small Rural Firms in Lagging Areas of Greece," Small Business Economics, Springer, vol. 14(2), pages 125-36, March.
  8. Dwight M. Jaffee & Thomas Russell, 1976. "Imperfect Information, Uncertainty, and Credit Rationing," The Quarterly Journal of Economics, Oxford University Press, vol. 90(4), pages 651-666.
  9. Fonseca, Raquel & Lopez-Garcia, Paloma & Pissarides, Christopher A., 2001. "Entrepreneurship, start-up costs and employment," European Economic Review, Elsevier, vol. 45(4-6), pages 692-705, May.
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