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This chapter reports a study that investigates the link between rural small firms’ social networks and their market diversification strategies in the context of the Internet.

Telephone interviews were conducted with a random sample of 142 Scottish small rural and urban firm owners in May 2012. The purpose of the telephone interviews was to understand how Internet usage impacted on the social networks and market diversification experiences of small rural firms. Analysis of the categorical data was performed using a variety of established methods.

Internet usage for many small Scottish rural firms was facilitating both their market reach and social networks. In addition, small rural firms’ most important social network contacts are highly correlated to their origin of sales, and this can be either locally or extra-locally based.

A positive relationship between Internet usage, social networks and market reach expansion offers support for further developing and improving the Internet infrastructure of rural communities.

Internet usage emerges as a critical tool for augmenting the social networks of Scottish rural small firms, which in turn helps to extend their market reach activities.

It is important that agency advice and support for SMEs in rural areas is congruent with how business-owners perceive their needs and challenges. To explore how well matched these two sides are, this chapter investigates the difficulties faced by small businesses operating in rural southwest Scotland.

In-depth interviews with business influencers (those whose activities affect businesses either through application of policy initiatives, development of policy or the giving of business advice) and owner-managers of rural businesses compare and contrast the perceptions of the challenges of rurality for small businesses.

Mismatches are revealed between the concerns of rural business-owners and what business influencers understand them to be. Business influencers consider that structural weaknesses and a ‘lifestyle’ business culture in the region inhibit growth, but business owners are strategic in their business aspirations and approaches to growth. However, they are also highly critical of the promotion of the region and concerned about the misunderstanding of potential visitors that the region is remote and difficult to access.

This chapter reports experiences in a particular rural location; such experiences are typical of many rural regions and, thus, the findings should be transferable.

The region’s economic strategy focuses on reducing the significant prosperity gap with the rest of the country. Key to this is the development of indigenous business sectors. However, the policy interventions derived from a misapprehension of the constraints and underpinning culture of indigenous businesses are unlikely to be successful and may be counter-productive.

Contrasting the perspectives of those who do business with those who influence business reveals issues of understanding which need to be addressed.

The creation of small businesses in Mexico since 1990, largely the result of the diversification of activities in rural areas, is one of the most prominent strategies, both for the improvement of the quality of place and life and for value of localized resources. Although the rural context imposes barriers, social capital and networks constitute an advantage for rural entrepreneurship, since shared values and norms such as the local context allow the articulation of economic, productive, social, and cultural resources for production and sale of significant goods for the region. The cases analyzed show the value of the collective dimension for the start of productive projects, which have contributed to reconverting and sometimes reconfiguring old resources such as land, ecosystems, landscape, animals, and crafts, in assets to start a business.

To examine the nature and the determinants of the incidence and diffusion of a range of new technologies.

We collected new survey data in 2001 for medium sized establishments in upstate and central New York.

Our econometric findings suggest that the use of new technologies tends to be more extensive in firms in which greater use is made of flexible work practices and flexible compensation practices and when skill levels are high. We find that the use of IT, the intranet, and computer literacy training is greater when the average tenure of managers is low, which might reflect a greater comfort with new technologies by younger managers. Larger establishments tend to use the Internet more extensively, which may reflect the cost of setting up Internet billing and purchasing systems, and an intranet communication system. Managerial tenure does not affect the use of the Internet in general perhaps because these might be operations that are less central to the activities of more senior managers. Also, we find mixed evidence for our digital divide hypothesis that predicts that the use of new technologies would be greatest in metropolitan areas and least in rural locations.

We recognize it is potentially risky to draw inferences from a relatively small survey.

Some findings mesh with those contained in earlier studies (e.g., Black & Lynch, 2004) though, importantly, now finding emerge when a broader range of new technologies is being considered.

This chapter contributes to addressing the gap in the literature on entrepreneurs and enterprise in island and remote rural environments.

The research, policy and practice literature on island enterprises and entrepreneurs is reviewed, taking Scotland as a focus within wider international contexts. Islands – as spaces and cultural places – are recognised in terms of ‘otherness’ and difference, not least in respect of tourism and culture. The importance of distance, isolation and peripherality is discussed as social constructions – myths and narratives – as well as in their mainstream measured equivalences. Agencies and policies are introduced at different levels and given significance reflecting their particular relevance in remote and isolated communities. The significance of the dominant paradigm founded on agglomeration, clusters, connectivity, proximity and competitiveness in the peripheralisation of those establishing and running businesses on islands is explored critically. This is contrasted with experiences from comparative northern European locations of smart specialisation, innovation and resilience, and the underpinning key roles of social capital, relationships and cultural values and norms are identified. Sectoral case studies and enterprise are offered to examine these issues in context.

As this is an exploratory study, results are neither comprehensive nor definitive. However, they are indicative of how forces and obstacles apply in island and remote rural environments.

The study confirms the need to recognise social relations locally, and for policies and strategies to be proofed for locational differences.

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

The objective of this chapter is to lay the foundation for the edited collection of contemporary research contributions contained in this book. Specifically, the chapter is concerned with defining and conceptualising rural entrepreneurship.

The chapter seeks to explore why and how a rural enterprise can be defined, and determines whether rural entrepreneurship is a distinctive category of entrepreneurship theory and practice. Building on descriptive rural enterprise taxonomies proposed in previous studies, the chapter considers the drivers and barriers impacting on firm start-up, growth and decline in rural environments.

The authors argue that there is little difference between a rural and non-rural enterprise in terms of structure, that is how the business is organised or managed, or how the characteristics of the individual entrepreneur are exhibited. Thus, it would appear that there is no specific category for, nor definition of a rural entrepreneur beyond that of ‘an individual who manages a venture in a rural setting’.

The chapter is based mainly on a review of extant literatures.

The chapter concludes that it is the exogenous factors that differentiate rural from non-rural ventures, and it is these factors that will have a significant impact on start-up, growth and failure rates.