Community Matters: Successful Entrepreneurship in Remote Rural US Locations

Abstract

Entrepreneurs in remote rural towns face unique challenges. These towns have fewer people, with less income, making fewer purchases. Businesses also have problems associated with long distances and isolation. However, these general circumstances cannot explain the variation in success among rural entrepreneurs. Due to the tendency in previous studies to aggregate data on rural businesses, the situation of entrepreneurs in remote rural US communities is understudied. The purpose of this study is to examine the correlates of successful entrepreneurs in these remote areas. The findings indicate that entrepreneurs who start businesses to provide income and flexibility for their family have more perceived success than those motivated by a desire for great wealth and the wish to challenge themselves. Entrepreneurs in high bridging social capital towns were also more successful. Community bridging social capital may enhance entrepreneurs' success by helping to retain and attract skilled labour, reducing costs, providing access to capital and engendering resident customer loyalty.