Rural Entrepreneurship: What It Is and Why You Should Care

Rural entrepreneurship is small businesses done in rural areas.

Small businesses in rural are different from the ones you see in urban areas because of environmental factors.

What is rural entrepreneurship? Rural entrepreneurship is a term used to describe the growing trend of people starting businesses in rural communities. Most of these entrepreneurs are small business owners who often see their communities as places to begin their own companies because they can’t afford big-city real estate and labor inflated costs.

If you want to learn more about rural entrepreneurship.. keep reading..

The Benefits of Rural Entrepreneurship

  • Many rural entrepreneurs make money without damaging the environment.
  • Rural entrepreneurs tend to hire local labor.
  • Rural entrepreneurship promotes local innovation and expands the skill sets of local people.
  • Rural entrepreneurs improve the quality of their lives and their communities.
  • As a result of rural entrepreneurship, there’s a high demand for locally sourced products and service providers.
  • Rural entrepreneurs decrease poverty by providing high-quality jobs.
  • Rural entrepreneurs are often able to attract more customers due to the feeling of local community pride.
  • Rural entrepreneurship can increase school enrollment, higher voter turnout rates, and more involvement in civic affairs.
  • Rural entrepreneurs are more likely to rely on word of mouth to promote their businesses than urban entrepreneurs.
  • Rural entrepreneurship is a way for rural communities to take back their economic independence.

Rural Entrepreneurship Importance

Rural entrepreneurship is important because it provides economic opportunities for rural communities.

Rural entrepreneurs can catalyze change in their local area. The success of these businesses will contribute to an increase in job creation and improved quality of life.

In today’s world, where everyone feels pulled toward major cities, starting a business in your own community may be one way to help keep that sense of belonging intact. While also providing something productive for yourself and others around you.

If done right, rural entrepreneurship can also attract new businesses from outside markets.

Rural entrepreneurship can also have social benefits such as decreasing crime rates due to higher incomes for low-earners.

Problems Faced By Rural Entrepreneurs

Rural entrepreneurs face several problems:

Rural businesses may not have access to major distribution channels or lack the resources that large cities do.

People living in these communities tend to spend most of their income on daily necessities such as food. Thus, making it harder for them to afford new products from local vendors.

Small towns and villages often don’t offer the same opportunities available in larger urban areas. So people will sometimes move away if they want better job prospects elsewhere.

This means that rural businesses must overcome obstacles such as a lack of skilled labor.

Rural entrepreneurs can also face challenges securing funding for their business ventures as there is a lack of financial institutes in the community.

There are extra expenses for starting a business in rural areas, such as higher transportation and logistics services.

It’s also more difficult for rural businesses to invest in innovative solutions since they don’t have access to the same level of capital as their larger competitors.

Rural entrepreneurs can face hurdles such as a lack of awareness among potential customers about their offer.

They may also lack the resources and expertise to be able to approach customers with effective marketing campaigns.

Their potential customer base may be too small to justify the investment required for advertising.

And, it could take time for word of mouth about a new business to spread in a community where people generally spend most of their time working.

Rural entrepreneurs must also find ways to get around the high cost of living in their communities, including buying used equipment or supplies that are cheaper than brand new items.

Types of Rural Entrepreneurship

Several types of rural entrepreneurship can help to support local communities.

Some examples include:

  • Starting a farm,
  • Opening up an agricultural business,
  • Establishing a tourism-related enterprise

Rural entrepreneurs may also want to look into the different opportunities available. Such as retail stores and restaurants, which could be incredibly lucrative if they’re located within walking distance from residential areas where people live.

A disadvantage is that these types of companies often require lots of regular foot traffic. And customers won’t typically travel very far just to shop at one store. Still, it does provide benefits like attracting repeat customers who will purchase more items over time.

Starting a service company might also make sense for rural entrepreneurs. Such as a cleaning service or landscaping company that could serve both homes and businesses in the area.

You could also consider starting a company that offers products or services to other rural entrepreneurs. Such as bakeries, cafes, and restaurants for farmers, mechanics who can service equipment like tractors.

Another option is opening up an online store selling goods such as agricultural supplies, tools, etc.


Rural entrepreneurship can be incredibly beneficial for local economies, but it also comes with its own unique set of issues that need to be addressed.

However, this doesn’t mean that rural entrepreneurs should give up on their dreams. If anything, the obstacles they face are only further proof that there’s an unfulfilled market in these areas, creating new opportunities for those willing to take them on.

Thank you for reading! Also, if you liked this article, then make sure to check out What is The Need For the Promotion of Entrepreneurship And Small Business.

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