ENTREPRENEURIAL NETWORK DEVELOPMENT LINKED TO A SOUTHEASTERN NORTH CAROLINA REGIONAL FOOD SYSTEM INITIATIVE: BUILDING INNOVATION CAPACITY

Sustainable agriculture tied to expanded and strengthened regional food systems shows great promise as a place-based economic development strategy that links to existing skills and resources within rural communities in southeastern North Carolina. An assumption underlying most regional food system efforts is that once markets are established, farmers will chose to take advantage of the new opportunities. However, evidence suggests that limited resource rural households (LRRHs) have been particularly hesitant to get involved in these new ventures; LRRHs in SE NC are generally unaware of the unfilled demand for high-quality locally grown food, and lack knowledge of how these new markets function. Therefore, they are missing out on economic opportunities that could significantly improve their quality of life. In the past couple of decades, LRRHs have made an economically justifiable decision to move away from agriculture as a viable livelihood strategy; only a very small number appear to be moving back into agriculture in response to changes in demand. The limited available research suggests that LRRHs have very strong ties within their close-knit social networks, but tend to have very few ties outside of those networks. This lack of connection hinders LRRHs' capacity to participate in expanding regional food networks since, as with other types of entrepreneurial networks, a primary contributor to network viability is social relations of cooperation and trust among suppliers, producers, workers, brokers, retailers, and consumers. This suggests that innovation capacity in LRRHs could be increased through establishment of ties to regional business networks in the course of trust-building interactions among a small group of households working together to achieve mutually beneficial objectives. We will test theoretical concepts through a comparative case study of five groups of LRRHs that have self-organized around food production. We will provide resources and assistance to each group as they identify a priority need, and develop and implement a plan that addresses that need. In the process, we will help each group to expand and diversify its business networks. Qualitative data collected from each group before and after the planning process will be used to test hypotheses and evaluate the effectiveness of the support strategy. This project will increase knowledge about factors hindering or enhancing the innovation capacity of LRRHs, information that will be of value in design of more effective LRRH support and outreach programs. In addition, this project will provide direct benefits to participants in the form of improved farm operations and increased market access.