Rural Entrepreneurship And Development - An Eritrean Perspective

Abstract

An attempt is made in this paper to discuss the key issues related to entrepreneurship and its relationship with rural development. The analysis is then broadened to understand the determinants of rural entrepreneurship and the environment conducive to its development. Consequently, the policies that are necessary to make this environment favourable have been discussed in detail. The generic constraints that are faced by rural enterprises have been listed out. The paper also emphasises the importance of rural enterprise development in Eritrea. The paper discusses entrepreneurship activities in rural Eritrea and identifies the challenges and provides some policy implications. The conclusion is that to accelerate economic development in rural areas, it is necessary to promote entrepreneurship. Entrepreneurial orientation in rural areas is based on stimulating local entrepreneurial talent and subsequent growth of indigenous companies in the country. This in turn would create jobs and add economic value to a region, and at the same time, it will keep scarce resources within the community.