EconPapers    
Economics at your fingertips  
 

Rural Entrepreneurship in a Time of Recession

Figueroa-Armijos María, Dabson Brian and Johnson Thomas G.
Additional contact information
Figueroa-Armijos María: University of Missouri
Dabson Brian: Rural Policy Research Institute (RUPRI) and University of Missouri
Johnson Thomas G.: University of Missouri

Entrepreneurship Research Journal, 2012, vol. 2, issue 1, pages 1-29

Abstract: Economic recessions increase costs, risk, stress, uncertainty, and business failures while decreasing the availability of employment. Individuals who seek to become self-employed in recessionary times, whether out of need or for opportunity reasons, face difficult and unique circumstances. We use cross-section repeated-measures rare events logistic regression to model the effects that living in rural America and changes in the economy have on the probability of individuals engaging in necessity or opportunity entrepreneurial activities both before the recession (2005–2007) and during the recession (2008–2010). Key findings indicate that before the recession, individuals living in rural metro and nonmetro counties were more likely to engage in opportunity-driven entrepreneurial activities when compared to individuals living in more urban counties. Positive employment growth rates before the recession also increased the probability that individuals in rural areas would engage in opportunity entrepreneurship. The recession marked a shift in the motivation of individuals in rural America to become self-employed. There is a clear decline in opportunity entrepreneurship and an increase in necessity entrepreneurship. In all rural and mixed-rural counties, college education positively predicts opportunity entrepreneurship, whereas individuals with incomes below $50,000 or working in a part-time job are more likely to engage in entrepreneurship driven by need.

Date: 2012
References: Add references at CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://www.degruyter.com/view/j/erj.2012.2.issue- ... .1044.xml?format=INT (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bpj:erjour:v:2:y:2012:i:1:n:3

Ordering information: This journal article can be ordered from
https://www.degruyter.com/view/j/erj

Access Statistics for this article

Entrepreneurship Research Journal is currently edited by Chandra S. Mishra and Ramona K. Zachary

More articles in Entrepreneurship Research Journal from De Gruyter
Series data maintained by Peter Golla ().

 
Page updated 2017-02-27
Handle: RePEc:bpj:erjour:v:2:y:2012:i:1:n:3