ABSTRACT
Entrepreneurship—the creation of new products, processes, and organizations in the economy—is the mechanism by which economic innovation occurs and is the vehicle for creating economic growth. Self-development strategies draw on entrepreneurship strategies for the creation of new, usually small, local enterprises. The rising attention paid to entrepreneurship has been accompanied by growth in the number of new businesses. Interest in entrepreneurship centers on its potential contribution to the performance of rural economies. Entrepreneurship can also lead to strengthened human capital by educating the citizenry and stimulating further new business ventures. There are good reasons for believing that entrepreneurship may produce less real economic innovation in rural areas than in urban settings. An assessment of the chances that entrepreneurship strategies can help the rural South must take account of several major obstacles to economic progress in the region. Relying on cheap labor costs, in particular, creates a special vulnerability for rural communities.
