Logic of an Effectuating Hyperlocal: Entrepreneurial processes and passions of online news start-ups

Abstract

This article examines motivations, rewards and strategies in hyperlocal news entrepreneurship. The material is an interview study with eight entrepreneurs who independently own and manage hyperlocal news sites in Sweden. The conclusion is that the means of the hyperlocal entrepreneur both motivate and create an obstacle for growth. The findings of struggling business models, self-exploitation and civic motivations correspond with previous research in different countries, but alternative perspectives are suggested drawing from theories of entrepreneurial passion and processes. Civic motivations can be viewed as part of entrepreneurial passion, and the precarious nature as a low-risk effectuation process. The effectuator explores possible outcomes of given means and builds the business by controlling the affordable loss rather than calculating the possible return. Along with the obvious difficulty in finding a profitable business model when operating in a very small market, this implies a new perspective on failure and success in hyperlocal entrepreneurship, but also underlines that any measures of support for the sector need to be easily accessible for the individual entrepreneur.