Entrepreneurship in the Rural Labour Market: An Agent-Based Modelling Approach

Entrepreneurship is an important feature of the UK rural labour market.However, despite its importance, there is still a limited amount of research in this arena. The aim of this thesis is to address this gap in literature and contribute towards the research on this topic. Agent-based modelling is the main methodology that has been employed to study the various factors which drive entrepreneurship in rural areas in the UK. The thesis develops an occupational choice model of rural entrepreneurship. The dynamics of this occupational choice model are then explored by further constructing an agent-based model. Rural businesses are a significant pillar in the UK economy, however their contribution is often overlooked by policymakers who are unable to recognise the existence of economic opportunities available in rural regions. To address this gap, in the agent-based model framework the thesis further explores the impact of policy on entrepreneurial outcomes in the rural labour market. Due to their remote rural location, one of the challenges facing rural entrepreneurs is the lack of networking opportunities. Rural entrepreneurs often need a multitude of support in order to develop and grow their businesses. Often networking with other enterprises serves a valuable intangible resource. Hence the thesis focusses upon the role of entrepreneurial networking in fostering rural entrepreneurship. This is explored through various different network structures which are incorporated in the agent-based models developed in the NetLogo platform. The thesis also highlights the importance of entrepreneurial ecosystems in a rural context and investigates the impact of embedding in a social network on the entrepreneurial outcomes. The results highlight the importance of both formal institutional support and informal network connections for rural entrepreneurs. The results also identify important drivers such as total factor productivity, wages, costs and switching costs and their impact on the entrepreneurial outcomes.