Abstract

A ‘neo-endogenous approach’ to rural development explores the inter-relationship between entrepreneurship and its spatial context. Neo-endogenous 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 extra-local influences.

Results from a large-scale survey, undertaken by CRE researchers in January 2009, describe the characteristics of rural businesses in the North East region. Building on earlier work by Bosworth (2008; 2009a, b) and Atterton (2005, 2007), 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 viewed as providing such a context and space 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.