Can Social Capital Be Exchanged for Rural Development? Potentials and Limits Explored Through the Case of Citizen‐Initiated Rural Grocery Stores in Denmark

ABSTRACT Seen through the case of citizen‐initiated grocery stores in Denmark, this article investigates the potential and limits of the neo‐endogenous approach to rural development. Due to the current trend of centralising retailing and the resulting closure of more and more stores in rural parts of Denmark, there is an increasing interest among citizens to jointly initiate or maintain grocery stores. Building on the notions of bonding, building and bridging social capital, the article investigates how these initiatives successfully mobilise internal and external resources. The paper, however, also points to certain constraints beyond local control that limit the space for community action. This is mainly related to barriers in establishing ties to municipal actors and the banking sector. The paper confirms much of the existing research on neo‐endogenous development praising the power of local initiatives and social capital as paths to rural development while stressing the importance of acknowledging how structural constraints and external connections beyond local control form what local actors can and cannot do.