Business and local development: Training as a basic factor to guide the entrepreneur

Abstract

Purpose: The present article is a report that begins with a review of the main local development theories in order to go into the entrepreneur and entrepreneurial promotion in rural areas as a local progress boost. Also, we study the influence of the entrepreneur personal factors (experience, location…) in companies setting-up, and how the education level (in a broadly definition) affects economic development through a latent variable that we call “entrepreneurial spirit” and results in business creation.

Design/methodology/approach: The research starts from an analysis and collection of existing literature on local development to move to a cross-sectional study using a direct survey. To treat the information gained it was used the latent class analysis.

Findings and Originality/value: The data analysis suggest two main conclusions: The starting and continuous training, the personal situation and the environment, are configured in a straightforward way in the entrepreneur spirit and what development programs allow designs with guaranteed success. From these conclusions emanates five reflections.

Research limitations/implications: We found geographical bounds when we interviewed Andalusians companies, although we assume by focusing on low population density locations, this is not a problem to transfer the study to other areas.

Practical implications: The study is useful to social agents responsible for design of corporate training programs, organization and control of enhancing entrepreneurial tools in rural areas.

Social implications: Promoting enterprises in rural areas that allow depopulation and reduce the concentration in large cities. Also, through economic growth in these locations, it improved the quality of life in the area.

Originality/value: The research aims to contribute the establishment of the entrepreneurial figure in the local development as well as prioritize training as a key of that fact.