Local Entrepreneurship in Vietnam’s Rural Transformation ...
Rural Entrepreneurship Context, Issues and Trends.
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Transcript of Rural Entrepreneurship Context, Issues and Trends.
Learning Objectives
Define ‘rural’ America Understand impact of demographic and
economic changes in rural U.S. Explain how current trends influence rural
communities Understand concept of community
resilience and its relevance to entrepreneurship
Recognize challenges and opportunities for retail entrepreneurs in rural communities
Geographic definition of ‘rural’
All geographic areas outside metropolitan areas—70-80% of geographic area of the US.
Rural—Open country and places with 2,500 or fewer residents
Urban—Places with more than 2,500 resident Metropolitan—Places with greater than
50,000 residents Non-metropolitan—inverse of metropolitan Micro-politan- larger trade center in rural
area
Demographic characteristics of rural communities
20% of US population lives in rural area Over the last several decades:
People in 20s have left rural areas Older people have moved to rural America Rural birthrate has declined Hispanic population fastest growing
racial/ethnic group Non-Hispanic white growth rates lowest of any
group Modest growth in African American population
Social and cultural profile of rural communities
Value Attribute
Rural Urban
Community Interaction
Mandatory Voluntary
Roles Ascribed Achieved
Sanctions Particularistic Universalistic
Orientation Group Individual
Leadership Traditional Rational
Social capital in rural communities
Social capital (SC) built through interactions, relationships, networks-unique in rural communities
Developed through interaction among community members
Key influence on community business environment
Economic prosperity associated with social capital
Signals of SC are civic participation, community embeddedness and expectations of reciprocity
Rural economy
Core economic activities in rural areas rooted more in old economies than new economies
Diverse economic activity in agriculture, natural resource industries, processing/ manufacturing, government, retail/service
Economic vitality dependent on distance to urban areas, natural amenities, cultural opportunities
Changes in rural America
Rural America has experienced significant changes in the last half century
Decline in reliance on farming and other natural resource based industries
Low tech manufacturing declined due to global competition
Population shifts: more older, more Hispanic, fewer young residents
What is ‘brain drain’?
Many rural communities have lost younger residents to urban migration
Younger, educated rural residents find employment, social opportunities in urban centers
Loss of younger residents is associated with rural community decline
What is a ‘resilient community’?• Successfully adapts to change by utilizing and
developing resources that mitigate effects of change
• Collective capability to form partnerships, build social capital, and social cohesion
• Demonstrates improvement in well being of residents
• Able to retain younger, skilled and educated residents
Trends and Opportunities for Rural Communities
Suburbanization Competitive challenges and economic
opportunities for rural communities
Seasonal residents Growth brings challenges and opportunities to
rural places
Elder industries Offer recreational/retirement opportunities to
meet older American’s needs
Entrepreneurial growth Represents core rural development opportunity
Trends and Opportunities for Rural Communities
Lone eagles Urban Americans moving to rural settings and
making their livings via the Internet Next generation of business and community
leaders, community philanthropists, mentors for future entrepreneurs
Technology Rapid advancement makes it easier for rural
entrepreneurs to reach broader markets; also raises the competitive stakes for rural businesses
Value of local retailers
Local retail stores enhance rural communities
Provide convenient access to goods/services
Source products locally Employ local residents Pay taxes Reinvest profits in the community
Challenges for rural retailers
Declining local market Competition from chains and Internet High operating costs/lack of economy
of scale Availability of qualified employees Narrow profit margins Taxes and regulation Lack of community support
(outshopping)