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An Exploration of the Characteristics and Embeddedness of Entrepreneurs in a Rural Community

Project Team: Mr. David Power, Dr. Patrick Lynch ([email protected]), Dr. Mary T. Holden ([email protected] )

This project was funded by the Irish Technology Research Strand 1. It had a lead time of 24 months, and was completed in September 2011.

The Project Aim

The overarching aim of this research was to investigate the nature of rural entrepreneurship and the effects of entrepreneurial embeddedness in a rural setting. Specifically, the research objectives were:

1. To explore the demographical and psychological characteristics among rural entrepreneurs for commonalities or differentiators that affect entry to entrepreneurship.
2. To explore the factors affecting entry to rural entrepreneurship.
3. To explore how community embeddedness can enhance or hinder rural entrepreneurship.
4. To explore the function and effectiveness of an entrepreneur’s network in a rural community context.

Methods

The methodology focused on content, context, processes and outcomes of rural entrepreneurs, hence the need for a methodology that allowed for a rich and more detailed analysis. Little research investigating this phenomenon was available so the research methods had to be flexible, unstructured, and qualitative because the research team began the project without a firm preconception as to what would be found. This study utilised a case study methodology which is typical of exploratory research.

Engagement Activity

This project involved significant and in-depth interaction with rural entrepreneurs. In total 30 entrepreneurs were interviewed in order draw upon on the actual experiences of existing rural entrepreneurs in understanding rural entrepreneurship and the effects of entrepreneurial embeddedness.

Impact

A major outcome of the study is that demographic and psychological characteristics do impact on rural entrepreneurs. This research found that the characteristics most likely to impact on rural entrepreneurs were sex, age, and period of time spent in business in the rural community. Also included under the demographic umbrella were education, previous work experience and family influences. When investigating psychological characteristics, the study found that the characteristics that directly impacted on rural entrepreneurs were independence, need for achievement, locus of control, risk-taking and tolerance of ambiguity. The study also revealed the importance of rural community embeddedness in the form of relational, structural and positional embeddedness, in addition to highlighting the importance of business networking. These findings have particular implications for practitioners and policy makers in an Irish entrepreneurial context.

RIKON 2013.