Abstract

After rapid urban growth and industrialisation, the post-war era has seen counterurbanisation become a dominant demographic trend in the UK. The residential trends are well documented but the associated growth of rural business has attracted less attention. ‘Commercial counterurbanisation’ describes rural economic growth stimulated by inward migration. Survey data and qualitative interviews in the North East of England found that in-migrants own over half of rural microbusinesses, they are more growth-orientated and they are responsible for significant employment creation. This is not just spatial decentralisation of business activity but the outcome of diverse social and economic processes. It is also a two-stage process as the business decision may occur several years after a residential move. With this time lag, in-migrant business-owners will be influenced by different factors in different locations. The balance of local embeddedness and extra-local connectedness is thought to be critical for successful and sustainable rural development.