Abstract:
The goal of this paper is to understand the different factors of the rate of entrepreneurial
intentions in rural and urban settings. Using data from survey we test for factors that are
expected to affect entrepreneurial between rural and urban areas. We assume one hypothesis;
the main difference of rural and urban entrepreneurs is the different resources in two areas. The
resources used in this study are individual resources and contextual resources individual
resources are composed of self-efficacy and demographic characteristics, contextual resources
consist of social support and economic resources. Using these independent factors, we
conducted T-tests to compare different resources in rural and urban areas. The results of the
analysis suggest that the difference in available individual, economic and social support
resources does not explain the observed difference in entrepreneurship rate. The results also
indicate that gender, ethnicity, income, and number of children in the family have different effects
on entrepreneurial intentions in rural and urban settings. The results suggest that policy makers
need to account for cultural or geographical differences when designing entrepreneurial
educational and support programs in order to enhance the establishment of new business
between rural and urban areas.
