ABSTRACT
This chapter sets out the results of empirical fieldwork conducted in the German case study areas (CSAs): Waldshut in the Federal State Baden-Wurttemberg and Nordwestmecklenburg in the Federal State Mecklenburg-Vorpommern. In Nordwestmecklenburg 25% of the enterprises identified the rural location as a dis-incentive to product innovation because of the poor business environment and the small local markets. The chapter includes quantitative data from population and entrepreneurship surveys as well as information from key informant interviews. In order to bring into focus the existing economic, social and political framework, it provides a brief review of rural areas and entrepreneurship in Germany and profiles of the CSAs. Small and Medium Enterprises (SMEs) play an important role in the quality and the creation of employment in Germany. There are many support programmes in which SMEs and start-ups can participate. The chapter concludes with a recommendation for a business support system.
