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Does Rural Entrepreneurship Pay?

Author

Listed:
  • 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.

Suggested Citation

  • 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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    Cited by:

    1. Raziiakhan Abdieva & Burulcha Sulaimanova & Kamalbek Karymshakov, 2019. "Gender differences, risk attitude and entrepreneurship in Kyrgyzstan," Economics and Business Letters, Oviedo University Press, vol. 8(1), pages 17-30.
    2. Rosario Pérez-Morote & Carolina Pontones-Rosa & Inmaculada Alonso-Carrillo & Domingo García Pérez de Lema, 2024. "Men’s and women’s visions of employment policies to combat depopulation in rural Spain," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    3. Jinfa Liu & Weixin Qi & Yawen Yu & Yan Han & Donghui Zheng, 2024. "Exploring the Influence of Village Social Capital and Rural Development on Farmers’ Entrepreneurial Decision-Making: Unveiling the Path to Local Entrepreneurship," SAGE Open, , vol. 14(2), pages 21582440241, May.
    4. Jun Yeong Lee & John V. Winters, 2024. "Too Cold to Venture There? January Temperature and Immigrant Self-Employment Across the United States," Economic Development Quarterly, , vol. 38(4), pages 249-270, November.
    5. Möllers, Judith & Pinkow-Läpple, Janine & Dufhues, Thomas, 2025. "Conceptualising rural migrant entrepreneurship: Lessons from Kosovo," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 14(2), pages 193-214.
    6. Binhui Wei & Chunkai Zhao & Mingzhong Luo, 2025. "Returning Entrepreneurship and Subjective Well-Being: Evidence from Migrant Worker Households in Rural China," Journal of Happiness Studies, Springer, vol. 26(3), pages 1-45, March.
    7. Diana Ivanycheva & William S. Schulze & Erik Lundmark & Francesco Chirico, 2024. "Lifestyle Entrepreneurship: Literature Review and Future Research Agenda," Journal of Management Studies, Wiley Blackwell, vol. 61(5), pages 2251-2286, July.
    8. Li, Bin & Pan, Ya, 2025. "Digital inclusive finance and rural entrepreneurial survival: The moderating role of digital and financial literacy," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1119-1136.
    9. Miguel Duarte & Álvaro Dias & Bruno Sousa & Leandro Pereira, 2023. "Lifestyle Entrepreneurship as a Vehicle for Leisure and Sustainable Tourism," IJERPH, MDPI, vol. 20(4), pages 1-13, February.
    10. Nicholas Litsardopoulos & George Saridakis & Chris Hand, 2020. "The Effects of Rural and Urban Areas on Time Allocated to Self-Employment: Differences between Men and Women," Sustainability, MDPI, vol. 12(17), pages 1-18, August.
    11. Kusio, Tomasz & Kudełko, Joanna & Borges, Alexandra & Delic, Anamarija & Stroila, Iulia, . "Are there any differences in rural development challenges within European countries? Social and economic contexts from EU rural leaders," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(5).
    12. del Olmo-García, Francisco & Domínguez-Fabián, Inmaculada & Crecente-Romero, Fernando Javier & del Val-Núñez, María Teresa, 2023. "Determinant factors for the development of rural entrepreneurship," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    13. Phina Njideka Onyekwelu & Godwin Imo Ibe & Francis Ezieshi Monyei & Joseph Ikechukwu Attamah & Wilfred Isioma Ukpere, 2023. "The Impact of Entrepreneurship Institutions on Access to Micro-Financing for Sustainable Enterprise in an Emerging Economy," Sustainability, MDPI, vol. 15(9), pages 1-15, April.
    14. Sarah A. Low & Martha Bass & Dawn Thilmany & Marcelo Castillo, 2021. "Local Foods Go Downstream: Exploring the Spatial Factors Driving U.S. Food Manufacturing," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 896-915, September.
    15. Pato Lúcia, 2020. "Entrepreneurship and Innovation Towards Rural Development Evidence from a Peripheral Area in Portugal," European Countryside, Sciendo, vol. 12(2), pages 209-220, June.

    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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