Beyond the Traditional View of Rural Entrepreneurship
Historically, scholars have debated how much rural context influences entrepreneurship. Some argue that rural entrepreneurs are shaped by external conditions such as low population density, lack of infrastructure, and economic policies (specifically agricultural). Others focus on the personal experiences of rural entrepreneurs and their social networks as part of rural social life. While this gives valuable insights, we propose a new way of looking at rural entrepreneurship: rather than treating rural entrepreneurship and the rural environment as separate entities, rural ventures emerge through dynamic relationships between people, materials, and practices that make up both rural ventures and rural areas.
Our study, published in the journal of Entrepreneurship and Regional Development, we shift the focus from individual rural entrepreneurs or contextual conditions to the everyday activities that drive the emergence and success of rural ventures. Rural entrepreneurship is deeply embedded in both the social and material fabric of rural life. Thus, rural entrepreneurship is not merely enabled or constrain by the rural context, but has more nuanced relations than currently described.
Rural entrepreneurship is deeply embedded in both the social and material fabric of rural life.
Three Stories of Rural Entrepreneurship
To illustrate their perspective, we share three compelling vignettes of rural entrepreneurship in Germany. These stories highlight how rural ventures emerge along with the rural context in unexpected ways.
- Syrian Cheesemaker’s New Beginning: A Syrian refugee settled in rural Germany and began making cheese using traditional methods from his homeland. Partnering with a local dairy farmer, they developed a thriving business producing Arab cheese. Along the way, they work within the local rural context—using surplus milk fat to make ghee and finding innovative ways to market the products to customers locally and in urban centres. This partnership not only helped sustain a small dairy farm but also created new opportunities for other refugees.
- A Coffee Alternative from the Countryside: A former city dweller, exhausted by the demands of the hospitality industry, moved to a rural area to start a coffee roastery. But instead of traditional coffee beans, she turned to locally grown legumes through partnerships with local farmers, reducing the environmental impact of her business. Through collaboration with other small-scale food producers, she became part of a broader movement to reshape the local food economy, proving that innovation isn’t limited to big cities.
- Revitalizing a Village Through Food and Community: In another case, a group of small farmers worked together to create a local food hub, transforming their historic farm buildings into event spaces, restaurants, and production facilities. Their initiative not only preserved family farming traditions but also brought fresh, organic food to schools and hospitals. By connecting with nearby urban centres, they demonstrated how rural entrepreneurship can play a vital role in innovation in regional food systems.
What This Means for the Future of Rural Entrepreneurship
These stories challenge the idea that rural entrepreneurship is constrained by its features of the rural environment, such as a lack of financial resources, which means they tend to be less innovative and productive. Such a view is based on stereotypical notions of rural areas, and, more importantly, also assumes entrepreneurship is separate but influenced by the rural context. Instead, rural entrepreneurship is a process that entails multiple practices that incorporate aspects of the rural landscape, materials, and partners, creating businesses that are deeply connected to, and emergent with, resources, traditions, and social networks, which fuels innovation. Rural entrepreneurship isn’t just about overcoming obstacles—it’s about harnessing local potential, fostering innovation, and building resilient communities.
Rural entrepreneurship isn’t just about overcoming obstacles—it’s about harnessing local potential, fostering innovation, and building resilient communities.
Our framework calls for a more nuanced understanding of rural entrepreneurship—one that goes beyond economic policies and factors and acknowledges the rich interplay between people, places, and practices. By focusing on how rural entrepreneurship unfolds in and through practices, we can better support rural ventures and recognize their contribution to sustainable economic development. As policymakers, researchers, and business leaders look for ways to support rural economies, adopting a practice theory-based perspective can help us move beyond outdated stereotypes and embrace the true diversity and innovative potential of rural entrepreneurship. By recognizing society and policymaker can better appreciate and support the diversity of rural entrepreneurship that shapes the future of rural communities worldwide.
