ENTREPRENEURSHIP IN RURAL AMERICA ACROSS
TYPOLOGIES, GENDER AND MOTIVATION
MARIA FIGUEROA-ARMIJOS
Department of Economics
College of Business and Economics
Lehigh University
621 Taylor Street
Bethlehem, PA 18015
mfigueroaarmijos@gmail.com
THOMAS G. JOHNSON
Department of Agricultural and Applied Economics
and Harry S. Truman School of Public Affairs
University of Missouri
215 Middlebush Hall
Columbia, MO 65211
johnsontg@missouri.edu
Received November 2012
Revised April 2013
Published June 2013
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.
Keywords: Entrepreneurship; rural; rural typology; opportunity entrepreneurship; necessity entrepre-
neurship; GEM.
Journal of Developmental Entrepreneurship
Vol. 18, No. 2 (2013) 1350014 (37 pages)
© World Scientific Publishing Company
DOI: 10.1142/S1084946713500143
1350014-1