Challenges in Rural Innovation and Entrepreneurship: A Lens Through Effectuation Theory

Rural areas are often plagued with diverse challenges that impede the pace of entrepreneurship and innovation processes towards sustainable development. The objective of this paper is to examine the challenges faced by rural entrepreneurs and outline strategies for fostering the scaling-up and growth of their ventures by employing the effectuation theory. An exploratory research design was implemented adopting a qualitative methodology with a multi-case study approach in an Indian context. The analysis of the data was done using thematic analysis. The analysis resulted in four major challenges which include overcoming cognitive barriers, intensifying collaboration with academia, aligning business propositions, and closing the grassroots investment gap. The study recommends the practice of design thinking, promoting technology transfer, increasing access to micro-finance, and localized marketing approaches to strengthen the rural entrepreneurial ecosystem.