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.
Check other articles from the issue Monográfico 2013 'Entrepreneurial activity and regional development' or from other issues.