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Small businesses are critical to improving economic development in rural areas of South Africa. However, rural entrepreneurs are still faced with challenges and problems which make the success of small businesses, especially in rural areas, uncertain. This paper investigates business environmental, financial and infrastructural factors that influence the success or otherwise of Small and Medium Enterprises (SMEs) in rural areas. Primary data was collected in five rural areas of KwaZulu-Natal (KZN) from a sample of 374 business owners/managers, with respondents completing a questionnaire. Access to finance and skills shortages were the factors that most significantly differentiated between more successful and less successful rural businesses in KZN. The majority of respondents indicated that poor roads/transport and access to electricity were major problems.

Microfinance institutions (MFIs) have largely focused on urban markets, leaving the rural poor underserved. The high costs of serving rural markets has often been identified as the key impediment to serving these markets, resulting in saturation and heavy competition in urban markets while poor rural clients remain unserved. In this paper, we provide evidence from a sample of over 10,000 microfinance loans in Malawi, that the cost argument has an important flaw. Results show that client retention, a critical aspect of financial sustainability, is significantly higher in rural markets. In addition to being a key financial indicator in an industry where annual client exit rates can exceed 50 percent, client retention is also a key measure of social impact. By operating in rural markets, MFIs may be able to increase both social impact and financial performance.

This study examines the effect of rurality on early-stage necessity and opportunity entrepreneurship among women and men in America from three rural typology perspectives. To achieve this objective, we build a dataset that combines GEM U.S. individual data for 2005—2010 and county economic characteristics from the Bureau of Labor Statistics and the Census Bureau. We use three typologies to define rurality and compare the results, the OMB metro-nonmetro classification system (2003), Isserman (2005) and county population density. We further analyze this data in subsamples by gender using cross-section time-series rare events logistic regression with clustered robust errors and year fixed effects. Key findings indicate the three rural typologies show similar results in magnitude, direction and significance, although population density shows sensitivity to the rurality variable and subsamples. Also, compared to women in OMB metro counties in America, women who live in OMB nonmetro counties have a higher probability of engaging in opportunity entrepreneurship. This probability increases with college education and decreases if the woman lives alone or is retired. Among men, living in OMB nonmetro or Isserman rural counties also increases their probability of engaging in opportunity entrepreneurship. College education and being African American also increases this probability. Predictors of necessity entrepreneurship are having an income below 50,000 among women and being employed part time among men.

We propose that, at a fundamental level, social isolation in its many forms (geographical, cultural and information-based) is a key barrier to entrepreneurial opportunity and success, not only by preventing access to material resources and markets, but also to ideas and information about products and services. Multi-modal data (survey and archival) from more than 150 entrepreneurs in contemporary rural India suggest an entrepreneur’s travel footprint is associated with the profitability of micro enterprises, even after accounting for village-level differences, and that the communication facilities and information sources available in the village interact with travel effects. The positive effect of travel on profit endures even after accounting for other known correlates of profit: infrastructure, information and communication.

This study explores the role of cultural practices on female entrepreneurship with some insights from the Nabdam district of Ghana. The views of twenty (20) female entrepreneurs were gathered through face-to-face in-depth interviews, which were analyzed according to identified themes. The key finding of the study is that, because of cultural influences and norms, entrepreneurship is perceived to be a field for uneducated women as highly educated women seek formal employment than self-employment. Also, the value and respect for traditions was found to be a limiting factor to the growth and expansion of female-owned enterprises. Therefore, this study concludes that the general poor performance of female entrepreneurs in the study area can be attributed to long-held traditional beliefs and practices rather than managerial inability on the part of women. The stereotype threat theory is used to explain the state of female entrepreneurship in the study area. Therefore, there is a call on policy makers to formulate policies that could eliminate the negative impact of culture on female-owned businesses.

This paper aims at examining the enterprises characteristic, business performance, and obstacles in doing business for food and agribusiness firms across rural and urban areas, based on World Bank’s Enterprises Survey data of 699 respondents. Chi-square test shows statistically significance difference in firms’ characteristics across the rural and urban regions. ANOVA reveals a significant difference in business performance. Similarly, perception about obstacles in doing business varies across the urban and rural firms. This study can be helpful for agribusiness managers and government policy makers in promoting region-based entrepreneurship in a focused manner.