Joan-Lluís Capelleras , Ignacio Contín-Pilart , Victor Martin-Sanchez , Martín Larraza-Kintana

The influence of individual perceptions and the urban/rural environment on nascent entrepreneurship

Individual perceptions have been shown to affect the decision to start a new firm. This decision is also contingent upon the context in which actions are taken. However, not much is known about the joint impact of entrepreneurs’perceptions and the urban/rural environment where the firm is created. The purpose of this paper is to examine how nascent entrepreneurship is influenced by individual perceptions and the urban/rural context. Using data from the Spanish GEM project, the results of a series of logistic regression models indicate that opportunity perception and self-efficacy have a positive influence on the probability of becoming a nascent entrepreneur. Interestingly, we also find that individuals in rural areas who perceive new opportunities are more likely to become nascent entrepreneurs rather than those who live in urban ones.