The village—an underestimated business location? Location factors of villages in Southern Lower Saxony

Abstract

For a long time, villages have remained overshadowed by urban spaces as business locations in academic and public discussion. This has changed owing to urgent socio-economic processes of change in rural areas. However, there are hardly any up-to-date findings about enterprises in villages and their specific location needs. This study, conducted in three sample municipalities in southern Lower Saxony, was able to empirically determine two major problems, which enterprises in villages clearly state: broadband access and the availability of skilled workers. At the same time, the village as a business location also has a number of positive soft location factors. One special feature is that entrepreneurs often live in the villages in which they operate. This results in a special social dimension, which is reflected, for example, in their involvement in local events. In addition to better networking, strengthening the function of mayors and municipal administration as lynchpins is particularly recommended for optimised business development.