WHEN IS THE NEXT BUS?: INFLUENCE OF MOBILITY AND INFRASTRUCTURE ON ENTREPRENEURSHIP IN RURAL INDIA

Jayaram Uparna () and Klaus Weber
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Jayaram Uparna: Paul Merage School of Business, University of California, Irvine, 4291 Pereira Drive, SB2 317 Irvine, CA 92697, USA
Klaus Weber: Kellogg School of Management, Northwestern University, 2001 Sheridan Road, Evanston, IL 60208-2001, USA

Journal of Developmental Entrepreneurship (JDE), 2016, vol. 21, issue 02, 1-17

Abstract: We propose that, at a fundamental level, social isolation in its many forms (geographical, cultural and information-based) is a key barrier to entrepreneurial opportunity and success, not only by preventing access to material resources and markets, but also to ideas and information about products and services. Multi-modal data (survey and archival) from more than 150 entrepreneurs in contemporary rural India suggest an entrepreneur’s travel footprint is associated with the profitability of micro enterprises, even after accounting for village-level differences, and that the communication facilities and information sources available in the village interact with travel effects. The positive effect of travel on profit endures even after accounting for other known correlates of profit: infrastructure, information and communication.

Keywords: Social isolation; entrepreneurship; informal economy; developing world; travel; rural; India; mobility (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1142/S108494671650014X

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