The developing in the developed: Rural SME growth in Israel

This study explores differentiating factors in employment growth between young small and medium-sized enterprises in rural regions and their application in developing economies. We applied a mixed-method approach, including a survey of 155 new ventures in Israel, an economy whose rural regions exhibit similarities to those of less developed countries, and 10 in-depth interviews with academics and practitioners. The results suggest that the economic development of rural areas through the cultivation of entrepreneurship should be carried out by providing potential business owners with two resources that are scarcer in these areas: funding and knowledge.