Neo-rural small entrepreneurs’ motivations and challenges in Portugal’s low density regions

Abstract

Purpose This study sought to fill a gap in the literature by examining the dynamics of neo-rural small entrepreneurs’ business activities as little research has been done on these individuals. The research was conducted in three of Portugal’s low density territories (i.e. Miranda do Douro, Penamacor and Aljezur), focusing on understanding these outsider entrepreneurs’ main motivations and challenges after they decide to leave the city to settle in rural areas and become small business owners. Design/methodology/approach Data were collected in semi-structured interviews with 26 neo-rural entrepreneurs. The multiple-case study method was applied to assess the differences and similarities between the interviewees and their respective contexts. NVivo 11.0 software was used to conduct content analysis. Findings The results reveal that rural environments appear to attract these new entrepreneurs for various reasons, such as taking advantage of business opportunities, searching for a better quality of life and responding to family needs. The multiple motives contributing to the need for change and entrepreneurship fit well within social cognitive theory. However, these individuals subsequently experience difficulties related mainly to a lack of infrastructure, little preexisting knowledge, a need for financial capital and the absence of the right workforce. Originality/value The findings on the experiences, difficulties and challenges of neo-rural entrepreneurs constitute new contributions because few existing studies have concentrated on migration and/or immigration entrepreneurship in rural contexts. The results can serve as a starting point for other similar studies.