| Publisher: Middle Tennessee State University
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Journal of Small Business Strategy
Journal Prestige (SJR): 0.232  Citation Impact (citeScore): 1 Number of Followers: 1  Open Access journalISSN (Print) 1081-8510 - ISSN (Online) 2380-1751 Published by Middle Tennessee State University  [2 journals]
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- An Overview of Rural Entrepreneurship and Future Directions
Authors: Dennis Barber III, Michael Harris, Jeffrey Jones
Pages: 1 - 4
Abstract: Prior research shows that rural entrepreneurship has its own distinct elements and deserves additional attention within the research community. The frameworks and methodologies from studies focused on high-growth and technology-based entrepreneurship are often used to explore rural entrepreneurial activities. This incongruence limits our understanding of the true impact entrepreneurship can have on rural communities. The articles in this special issue help advance our knowledge of rural entrepreneurship as a distinct field of study, and add to our understanding of its impact in the rural context. Additional research avenues are suggested.
PubDate: 2021-11-16
Issue No: Vol. 31, No. 4 (2021)
- Rural Entrepreneurship Success Factors: An Empirical Investigation in an
Emerging Market
Authors: Prince Gyimah, Robert N. Lussier
Pages: 5 - 19
Abstract: Small businesses in rural communities play a key role in achieving global sustainable economic development because they are the driving force of poverty reduction, job creation, resiliency, and economic development. This study examines the factors that drive the success or failure of small businesses in rural communities in an emerging market. The methodology is survey interview research using a logistic regression model to test the Lussier success vs failure prediction model with a sample of 230 businesses (successful n = 120, failed n = 110) from the rural communities in an emerging market. This study supports the Lussier model validity (p < 0.01) with a high overall accuracy of 71% in predicting a venture as successful or failed. Capital, industry experience, staffing, and marketing skills are the most significant (t-values < .05) factors that distinguish successful from failed rural businesses in an emerging market. The findings can help future, and nascent rural entrepreneurs avoid failure and successfully contribute to economic development. Implications for government agencies, public regulatory bodies, financial institutions, investors, suppliers, educators, professional institutions, and society, as well as limitations and future research, are presented. This study also contributes to the international validity of the Lussier model that can be used in both advanced and developing economies, and it contributes to the development of theory.
PubDate: 2021-11-16
Issue No: Vol. 31, No. 4 (2021)
- An Examination of Rural and Female-Led Firms: A Resource Approach
Authors: Marcos Segantini, Lori A. Dickes
Pages: 20 - 39
Abstract: Previous studies in entrepreneurship research indicate that external funding is critical for entrepreneurial success and that spatial funding inequities between nascent rural and non-rural firms are ever-present. Moreover, women entrepreneurs, rural or otherwise, receive fewer external resources than their male counterparts. To our knowledge there has been no research leveraging the Panel Study of Entrepreneurial Dynamics (PSED), a representative dataset of American individuals trying to create new firms, to better understand differences between rural, non-rural and female-led firms in terms of their ability to stay engaged in the entrepreneurial process and to earn a profit. Using the resource-based theory of the firm, this research will begin to examine some of the critical factors driving rural firm success and rural female-led firm success. We utilize Cox and logistic regression models to analyze the time to quit, time to profit, and the likelihood of firm survival and profit generation for these firms. Results reveal that externally monitored funds are a significant variable for rural firm success in comparison to non-rural firms and appear to be especially important for women-led nascent firms early in the firm gestation process. Future research would benefit from further exploration of funding bias, entrepreneurial motivation and personal characteristics of rural, female-rural and their non-rural counterparts. This research adds to the literature on rural entrepreneurship by using the resource based theory of the firm in conjunction with the PSED database to study the nature of firm success and firm profit for rural and female led rural firms.
PubDate: 2021-11-16
Issue No: Vol. 31, No. 4 (2021)
- Lifestyle Entrepreneurship and Innovation in Rural Areas: The Case of
Tourism Entrepreneurs
Authors: Álvaro Dias, Graça M. Silva
Pages: 40 - 49
Abstract: Lifestyle entrepreneurs play an important role in innovation and sustainability in rural destinations. Their competitiveness depends largely on how they explore their link to the place and generate innovation. To analyze the relationship between the link to the place and innovation, this article uses survey data from a sample of 221 rural lifestyle entrepreneurs. Using PLS-SEM modeling, the results indicate that place familiarity and relational capital positively influence innovation. Furthermore, place familiarity reveals as an important factor for improving relational capital. In its turn, the degree of relational capital contributes positively to the small firm’s knowledge absorption. The results also reveal that, although there is no direct relation between knowledge absorption and innovation, relational capital mediates the relationship between place familiarity and innovation and that there is an indirect relationship between relational capital and innovation, through the mediating effect of knowledge absorption. These results provides important elements for rural tourism destination decision making on innovation and competitiveness.
PubDate: 2021-11-16
Issue No: Vol. 31, No. 4 (2021)
- Developing a Small Business Educational Program for Growing Rural
Businesses
Authors: Timothy L. Pett, John Francis, Wendy Veatch
Pages: 50 - 56
Abstract: This paper elaborates on the development of a small business certificate program in rural Kansas. Researchers and local practitioners suggest that there are differences between rural and urban small businesses and that most educational programs do not account for these differences. After exploratory research, the university team identified specific needs facing local businesses and tailored a program for their needs. A program structure and set of topics, paired with faculty experts was developed and implemented. Topics focused on developing an entrepreneurial orientation, as well as certain business fundamentals that were deemed critical to small rural businesses. Each topic was oriented toward the rural context where face to face business is more essential. A feedback loop was implemented leading to a shorter 8-week timeframe and some topic adjustments. To date, 378 firms have participated in the program and have shown an 80% survival rate. Specific feedback has indicated that business growth has occurred and that the respondents do perceive development in their entrepreneurial orientation. In addition, specific skill areas related to unique businesses have been improved. Lastly, the program participants have grown their regional business networks, which has been shown to be an important factor for rural business success.
PubDate: 2021-11-16
Issue No: Vol. 31, No. 4 (2021)
- Small Business Development Centers and Rural Entrepreneurial Development
Strategies: Are We Doing Enough for Rural America'
Authors: Timothy C. Dunne, Katie Toyoshima, Michael Byrd
Pages: 57 - 63
Abstract: Many states across the United States have significant rural populations, which typically face different sets of challenges than those closer to urban populations. This is particularly evident in the different types of opportunities that small businesses face in those rural areas. In recent years, various efforts - both at a national and local level - have been taken to increase those opportunities for rural small businesses. However, those efforts have not always produced the results that are envisioned. Utilizing information about Small Business Development Center (SBDC) strategies to serve small businesses in both rural and urban areas, we highlight the efforts that work to aid rural entrepreneurs as well as those that fall short.
PubDate: 2021-11-16
Issue No: Vol. 31, No. 4 (2021)
- The Value of Social Media Advertising Strategies on Tourist Behavior: A
Game-Changer for Small Rural Businesses
Authors: Nory B. Jones, Patti Miles, Tanya Beaulieu
Pages: 64 - 75
Abstract: Nature-based tourism represents a growing sector within the tourism industry, and these interests could help improve the conditions of economically disadvantaged rural communities. The new digital landscape, including Internet and social media usage, represents a critical strategic opportunity to inform, educate and reach these tourism segments. The present research examines the impact of social media advertising on nature-based tourism within rural communities. In this research, we utilize the COBRA (Consumers’ Online Brand-Related Activities) model (Muntinga et al., 2011) of consumer behavior to assess the impact social media advertising plays in generating Pre-Consumption, Consumption, Creation, Contribution, and Engagement in rural business. The results are significant, finding that incorporating digital strategies within rural firms is beneficial. According to our research, the careful placement of a social media advertisement can statistically increase engagement components by more than 50%. In theory, this can increase tourism and economic activity in these rural, economically disadvantaged areas.
PubDate: 2021-11-16
Issue No: Vol. 31, No. 4 (2021)
- Fostering Entrepreneurial Ecosystems and the Choice of Location for New
Companies in Rural Areas – the Case of Germany
Authors: Matthias Liedtke, Reza Asghari, Thomas Spengler
Pages: 76 - 87
Abstract: Startup ecosystems have become a popular field of research in recent years, not only for researchers but also for regional policy makers. Contemporary research on startup ecosystems generally focuses on urban areas and hubs such as Silicon Valley, Berlin, or Tel Aviv. However, little is known about startup ecosystems in rural areas. To fill this research gap, the research objective of this paper is to analyse disparities between entrepreneurial ecosystems in urban and rural areas in general and specifically in Germany. The major aim of this study is to examine the importance and development of startups in urban and rural areas and to identify challenges and opportunities for rural areas in order to set the right impulses. The research focus of this paper is to discuss which stakeholders and determinants affect the founders in their location decision. Using German Startup Monitor (DSM) 2019 data, it is found that the lack of network ties and opportunities to collaborate with established corporations; availability of qualified personnel; access to venture capital; an investment and economic policy initiative appear to be obstacles that prevent founders from starting up in rural areas in Germany. The results also confirm the findings of other studies that entrepreneurship tends to be an urban event. This study also provides suggestions for future research.
PubDate: 2021-11-16
Issue No: Vol. 31, No. 4 (2021)
- Why Small Deals Don’t Get Done: Evidence From Rural Entrepreneurs
Authors: Jeff Stambaugh, Andy Yu
Pages: 88 - 99
Abstract: For myriad reasons, rural entrepreneurs may want to harvest by selling their business. While these entrepreneurs may look for inspiration to larger, public deals, there are few relevant insights to glean from these deals. Despite the high stakes involved for rural entrepreneurs and potential buyers, researchers have placed little attention on dealmaking at the lower end of the spectrum. We address this lack of research by answering the research question: Why do deals involving small companies go unconsummated' Because research on why large deals fall through is sparse and of limited applicability, we ground our research using insights from the venture financing arena (venture capitalists and angel investors) about why deals between entrepreneurs and investors do not close successfully. Applying a novel dataset from an economic development effort in a small southwestern U.S. city, we analyze the reasons why an investor group investigated 20 potential small deals, but none eventually closed. We found that issues both with the potential buyers and sellers led to the deal failures, with issues involving the valuation and also the selling entrepreneur being the most common deal-breakers. Furthermore, through this investigation, we gained insights into the challenges of an investor-driven model for economic development.
PubDate: 2021-11-16
Issue No: Vol. 31, No. 4 (2021)
- Flexing the Leadership Muscle: An International Study of Entrepreneurial
Resilience in Rural Communities During the COVID-19 Pandemic
Authors: Karise Hutchinson, Rachael Fergie, Emma Fleck, Georgann Jouflas, Zen Parry
Pages: 100 - 112
Abstract: The COVID-19 global crisis and the ensuing lockdown of large parts of society and economic life has been an exogenous shock to society (Kuckertz et al., 2020). It is predicted the impact on the small business sector is likely to be severe (Fairlie, 2020). The findings of this international qualitative study offer a first-hand and real-time account of the adversity encountered by small rural businesses during the first lockdown in the COVID-19 pandemic and insight into how their leaders exercised resilience. Drawing upon the evidence from 38 small business entrepreneurs and four business support organizations, the data pointed out three main challenges in terms of adversity relating to business model change, information flow and sense-making, and weak strategy. The study also brings new insight into five leadership practices and behaviors that help exercise entrepreneurial resiliency: personal and business experience of crises, positive mindset, personal faith, learning and leading, and relationships.
PubDate: 2021-11-16
Issue No: Vol. 31, No. 4 (2021)
