Rural enterprise and neo-endogenous development

A ‘neo-endogenous approach’ to rural development explores the interrelationships between entrepreneurship and its spatial context. Neoendogenous development is defined as ‘endogenous-based development in which extra-local factors are recognised and regarded as essential but which retains belief in the potential of local areas to shape their future’ (Ray, 2001: 4). The key principle is harnessing local resources, including human and social capital, while also recognising the importance of extralocal influences. Results from a large-scale survey undertaken in January 2009 describe the characteristics of rural businesses in the North East region of England. Building on earlier work by Bosworth (2008, 2009a, 2009b) and Atterton (2005, 2007), the analysis draws out the importance of in-migrant business owners in establishing and running rural businesses and the ways in which they differ from locally-born owners. In-migrants are important ‘neo-endogenous facilitators’ drawing new information and knowledge into rural areas through their extra-local networks. However, their contribution to the rural economy depends on their integration and embeddedness within their local community. Drawing on the work of Murdoch (2000: 417) who argues that the network approach is useful as a means of holding the ‘inside’ and the ‘outside’ together in one frame of reference, rural business associations are then explored as contexts for the mediation of local and extra-local networks. The chapter contributes to our knowledge of the diversity of entrepreneurial activity across all sectors in rural areas, and highlights the importance of extra-local resources for local development