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Migration and Rural Entrepreneurship

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  • Yu, Li
  • Artz, Georgeanne M.

Abstract

This paper investigates entrepreneurship of migrants and their location choice in attempt to draw connections between migration and economic development, especially the role of business formation in rural development. Rural entrepreneurship is firstly attempted to be better understood form perspectives of individual people's migration, human capital, social capital and family background. The study uses a recent survey on alumni of Iowa State University. We find that social capital and social networks established in one's home region are shown to be a strong factor in location choice of entrepreneurs. Entrepreneurs from rural origins tend to choose to start their businesses in rural areas in general and half of entrepreneurs migrate back to their home in particular to take local comparative advantages. Rural entrepreneurs are also more likely to obtain financial support from family members, friends and local banks to start a business.

Suggested Citation

  • Yu, Li & Artz, Georgeanne M., 2009. "Migration and Rural Entrepreneurship," Staff General Research Papers Archive 13095, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:13095
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    File URL: http://www2.econ.iastate.edu/papers/paper_13095_09017.pdf
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    Cited by:

    1. Charisia Vlachou & Olga Iakovidou, 2015. "The Evolution Of Studies On Business Location Factors," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 20(04), pages 1-23, December.
    2. Nik Atikah Suhailah Nik Sazila & Farah Adila Abdullah & Nurul Azwa Mohamed Khadri & Syamsuriana Sidek & Fadhilahanim Aryani Abdullah & Khairiyah Mat & Mohammad Amizi Ayob & Mohammad Mijanur Rahman, 2018. "The Intention Level among Felda Youth to ReMigrate from City for Livestock Entrepreneurship: A Preliminary Study," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(6), pages 566-577, June.

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