From employed to self-employed: An analysis of entrepreneurship in rural Latvia

Abstract

Private business is encouraged in transition countries in order to generate economic development in rural areas. This paper explores different forms of rural businesses in a peripheral region in Latvia. It builds primarily on interviews with business leaders and farmers. The analysis focuses particularly on the individuals that run businesses and how they utilise opportunities and respond to constraints. Individual resources such as ownership of land and buildings, skills and access to influential and geographically wide networks have been decisive for identification and exploitation of business opportunities in this rural context. Successful businesses demand that skills and contacts are continuously updated. Those undertaking such business activities that continuously try to adapt to the changing situation may be called “adaptive entrepreneurs”. Two different forms of adaptive entrepreneurs are identified; “flexible entrepreneurs”, those with greater ability to reorganize their businesses, and “restricted entrepreneurs”, those with more limited flexibility, which make them most vulnerable to change.