Rural Roots and Urban Aspirations: Spatial Influences on Entrepreneurial Motivations in Europe

Abstract

This chapter explores the spatial influences on entrepreneurial motivations across urban, peripheral, and rural regions in Europe. Using data from the Global Entrepreneurship Monitor (2019–2021), it examines distinct motivations for engaging in entrepreneurship, emphasizing how contextual factors shape entrepreneurial activity. Rural areas, often characterized by limited access to financial and human capital, weaker markets, and institutional constraints, tend to foster necessity-driven entrepreneurship. In contrast, urban regions, with their more resource-rich ecosystems, encourage opportunity-driven ventures aimed at wealth creation, autonomy, and social impact. Applying Maslow’s hierarchy of needs, the study identifies four key motivational drivers: earning a living due to scarce job opportunities, continuing a family tradition, achieving financial independence, and creating social value. The findings reveal that necessity-driven entrepreneurship is less prevalent in urban regions, where entrepreneurs are more likely to pursue great wealth and societal impact. Gender, education, and age further shape these motivations. Whereas women and lower- educated people most often engage in entrepreneurship out of necessity, young rural entrepreneurs are motivated by family traditions, and younger and highly educated individuals in urban regions are more inclined toward opportunity-based entrepreneurship. These insights contribute to a deeper understanding of regional entrepreneurial dynamics, highlighting policy implications for fostering entrepreneur-ship in different spatial contexts.