This paper investigates the interplay between entrepreneurial activity and the resources of the local context. In so doing, this study analyses how rural entrepreneurs access and recombine resources that are afforded by spatial context. Most entrepreneurs face considerable resource constraints, which are even more pronounced in rural areas. Spatial context offers a specific set of resource affordances which impact entrepreneurship, as entrepreneurs access the resource base (resource endowments) of a place. We know very little about, through witch practices rural entrepreneurs access and utilize spatially afforded resources that are rooted in the local context. The study shows how entrepreneurs engage in bridging activities, which means they reconnect rural places to non-local markets. A typology is developed that focuses on the characteristics of rural entrepreneurship according to spatial resource embeddedness and their bridging activities. The typology highlights the diversity of rural entrepreneurs and surfaces the distinguishing characteristics of what some rural ventures have in common. This offers the ability to identify manifestations of the empirical phenomenon in its context. The study contributes to an in-depth understanding of how entrepreneurs use spatial resources and engage in localized entrepreneurial activities that result in the circulation of value.

1. .
Sabine Müller & Steffen Korsgaard
Department of Business Administration
Aarhus University, Denmark
(Re)Sources of Opportunities -
The Role of Spatial Context for
Entrepreneurship
AoM Conference 2014
Session: Spatial Issues, Location, and Agglomeration in Entrepreneurship

2. What we KNOW
OutcomesActivitiesDrivers /
Structural Conditions
Regional
Development
Entrepreneurship
Regional/Spatial
Context

3. What we DON’T KNOW
OutcomesActivitiesDrivers /
Structural Conditions
Regional
Development
Entrepreneurship
Regional/Spatial
Context
Spatial context influences entrepreneurial
processes but it is less clear HOW it influences
these on a local level

4.  Rural regions typically suffer from resource scarcity,
inadequate infrastructure, small markets and limited access
to human and financial capital (Morgan, 1997; OECD, 2006)
 In adverse & uncertain conditions entrepreneurs may create
opportunities from resources that are readily available (Baker
& Nelson, 2005); “otherness” of the periphery may become an
advantage (Anderson, 2000)
THEORETICAL Background
I) Resource affordances
 The rural is a particular spatial context that offers good
opportunities to observe entrepreneurial activities and
processes because of its severe resource constraints
(Kodithuwakku & Rosa, 2002).

5.  Entrepreneurial activity influenced by how well resources
are connected to other spatial contexts or markets. Access
to relevant markets is challenging for entrepreneurs in rural
areas (Kalantaridis & Bika, 2011).
 Entrepreneurs who connect to other spatial, non-local
contexts are ‘bridging to space’ (economic geography, Hudson,
2005).
THEORETICAL Background
 Leveraging existing connections between spatial contexts
or building new connections may thus be an important
source of opportunities.
II) Bridging to contexts

6. Research QUESTIONS
What types of resources do rural entrepreneurs
extract from their spatial context?
RQ 1
How do rural entrepreneurs recombine
resources to create opportunities?RQ 2
How do entrepreneurs connect localized
opportunities with non-local market flows?RQ 3
How does the spatial context influence
entrepreneurial opportunity creation?

7. Study Design

8. Multiple embedded CASE STUDY
3 regions
Regional observations Site visits, Observations, PhotographsExperiencing
28 Ventures
Expert interviews Semi-structured interviews (90-120 min)Enquiring
Archival documents Org. documents, News clips, WebsitesExamining
North-
djursland
Wadden
Sea
Island of
Samsø

9. Findings

10. RQ1 | What types of resources do rural
entrepreneurs extract from their spatial context?

11. Entrepreneurs utilize a multitude of local
and SPATIALLY BOUND resourcesFindings I
Typeof
resource
Specified Exampleslocal Examplesnon-local Local
Non-
local
Baseline
physical
- Buildings, alsoDiscarded,
abandonedmaterialsorbuildings
- Natural amenities(landscape,
nature, natural phenomena,
wildlife)
- Natural resources(rawmaterials,
agricultural produce)
- Empty, derelict buildingsof aformercastle, neglectedfarmhouses,
abandoneddairyorslaughterhouse, closed-downhostel
- Abandonedairport –runwayandterminal buildings(S07)
- Natural birdmigrationphenomenonusedastourist attraction(V04)
- Agricultural rawmaterialssuchasberriestomakejam, berryjuice
- Woodfromtheforest tobuildmusical instruments(N04)
- Non-locallysourcedagricultural
productssuchassaffron, sugar,
malt, barley
- Non-locallysourcedpackaging
material andchemicals
- Productionfacilities
elsewhere/abroad
84 20
Human
resources
& capital
- Labour(Workers, Employees)
- Volunteers
- Businesses, productsand
service
- Know-howandexpertise
- Internet providerusesvolunteerstorundailyfunctions(N04)
- Localizedknow-how/expertiseinbuildinglow-energyhouses(S01)
- Integratinglocal products, businessesorservices; andusingother
businessesintheareaassub-contractors, e.g. treelabyrinthuses
woodenstatuescarvedfromlocal treesbyalocal artists(S11)
- Foreignvolunteersandtrainees,
e.g. berry-pickersfromabroad(S08)
- Foreignworkers, e.g. V01employs
workersfromPolandtobuildparts
of theconferencecentre
65 11
Social &
community
- Social networks
- Businessnetworks
- Partnerships
- Cooperatives
Local professional andprivatepartnershipswithcommunityand
otherentrepreneurs, for
- cooperating, e.g. loaningandsharingequipment, orsimply
“helpingout”:localsinstall wirelessantennaeontheirroofs(N04)
- partneringtosell productstogetherunderoneumbrella, e.g.
foodstuffs“WaddenSeaDelights”, “Samsø’sBackYard”
- financing, e.g. communityfinancedrestoredbuildings(S06)
- External professional networksfor
marketing&PR(S03, S09)
- counselling, e.g. start-upsupport
- cooperating, e.g. shared
productionequipment suchasjuice
producersprocesstheirraw
materialsatsharedmill (S08, V05)
36 16
Immaterial - Culture, Ethos
- HistoryandHeritage
- Stories, Image, Placebrand
- V01useshistoryasasettingforstorytellingandforperforming
historicgames
- Placebrandusedasresourcetosell jamorhoney
- Nonplace-specificstories(e.g.
storiesabout birdsof preyforS12
aregeneral knowledge)
48 3
Financial - Grants, loansorotherfunding - Financial support fromlocal banks
- Financial support fromlocal community(S06andN04got
activitiespartiallyfinancedbylocals)
- Municipalitygrants
- National andEUfunding(e.g. EU
structural funding)
7 7

12. RQ2 | How do rural entrepreneurs recombine
resources to create opportunities?

13. Entrepreneurs (re)combine resources
through LOCALIZED ACTIVITIESFindings II
Type of resource
activity and action
Specified Examples
# of
case
s
Local material* &
human** sourcing
Local and place-bound
tangible or intangible
affordances
Integrating local products, businesses or services in
own venture, for example using other businesses in
the area as suppliers, or supplement a product line
with other products from the area
25*
23**
Reusing place-
specific resources
Existing, unused
tangible or intangible
affordances
“Upcycling” neglected landscapes, run-down
buildings, discarded materials for new purposes
11
Commodification
through
storytelling
Creating a narrative
which supports place
branding
Utilizing the typical features of place, e.g.
landscapes, nature and natural phenomena (such as
wildlife) and include in storytelling
18
Collaborating &
partnering with
local actors
Collaborating and
partnering with other
local entrepreneurs and
the community
(creating synergies)
Forming networks and partnerships with other local
entrepreneurs, local stakeholders, or community
actors, “sharing the cake” and distributing wealth
among each other by teaming up and guiding
customers to other local actors, or using each other’s
products and services in activities
24
Involving &
empowering
community
Creating activities and
value through the
involvement and
participation of the
Involving and empowering the local community, local
stakeholders and/or informal leaders in venture
activities Engaging, priming and convincing
community, informal leaders and local stakeholders
18

14. RQ3 | How do entrepreneurs connect localized
opportunities with non-local market flows?

15. The extent and mode of BRIDGING
activities to other spatial contexts variesFindings III
Bridging
Specified: Market
(outlet & customer base)
Examples
# of
case
s
Yes Local and non-local
customers, local and
non-local outlet
V01 produces local place-specific products that are directly
sold to local and non-local customers at their premises and
indirectly through supermarkets. The packaging includes
the story of the venture and advertising to attract visitors,
who want to “visit the story”. This pattern of bridging is
especially prevalent for businesses that are pluriactive
across sectors.
9
Local and non-local
customers, local outlet
Event agency S03 organizes various tours of the locality
for national and international customers. Thus the actual
physical marketplace is local, but the customers are non-
local. This pattern of bridging is especially prevalent for
tourism and experience economy businesses.
6
Limited,
or no
Local customers, local
and/or niche outlets
S10 produces hand-made speciality foods and beverages
that are priced to fit certain smaller customer segments or
niche markets. These goods are sold locally and in a few
speciality shops around the country.
8
Non-local customers,
non-local outlet
The optical loupes manufacturer S04 produces locally, but
exclusively for a non-local customer segment of medical
professionals. The product is not a place-specific product;
also the resources to assemble these loupes sources non-
5

16. Theory building

17. R: Local by chance,
convenience or choice
A: Moderately localized
M: Local market + non-
local customer base
R: Mostly non-local
A: Limited localized
practices
M: Non-local Market
R: Place-specific resources
A: Highly localized
M: Local / Niche market
R: Place-specific resources
A: Highly localized
M: Local + non-local
market; Local + non-
local customer base
Extent of local
resource use
and practices
Extent of
bridging to other
spatial contexts
low
Locality as “location”
high
Locality as “place”
Typology
bridging
no bridging
Legend:
R:
Resources
A: Activities

18. ATTRACTORS
ENTREPRENEURSHIP
IN THE RURAL
ARTISANS
VALORIZERS
Extent of local
resource use
and practices
Extent of
bridging to other
spatial contexts
Typology
low
Locality as “location”
high
Locality as “place”
bridging
no bridging

19. Contributions
Rural entrepreneurs are not
just farmers or artsy
craftsmen: Typology provides
insight into the diversity of
entrepreneurship
“Valorisers” exploit local
potential fully
Summing up
Rural entrepreneurs utilize a
multitude of spatially-bound
resources
 Natural and Cultural amenities
 Community
 History & Heritage
 Stories, Image and Place brand
Majority of rural entrepreneurs
engage in highly localized
activities & practices
Contextualizing research
 Spatial context influences
entrepreneurial opportunity creation
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