The influence of embeddedness on rural entrepreneurs and their ventures: insights from the implementation of makerspaces in rural Saxony

In rural entrepreneurship studies, the relationship between embeddedness and venture orientations remains underexplored, especially how different configurations of social, cultural and spatial embeddedness shape entrepreneurial responses. Building on an inductive analysis of seven makerspaces established in rural Saxony, Germany, this study examines how different dimensions of embeddedness shape entrepreneurial venture creation in rural settings. Drawing on semi-structured interviews with space founders and extensive archival data, our analysis reveals how social embeddedness, cultural embeddedness and spatial embeddedness combine to influence venture orientations. Our empirically grounded study yields a typology of five distinct venture orientations that reflect different approaches to rural entrepreneurship which range from growth-oriented to cohesion-oriented, including hybrid orientations that balance different objectives. These orientations reveal how ventures contribute differently to their rural communities, from fostering economic expansion and preserving cultural heritage to strengthening social bonds. We make two main theoretical contributions: (1) expanding the construct of embeddedness to reflect its multidimensional and interactive nature; and (2) offering a dynamic pathway model that reveals the paradoxical freedom afforded by high embeddedness. Additionally, we make three minor contributions: (1) explaining the pressure of embeddedness on nascent founders; (2) introducing place identity as a new lens for understanding rural venture strategies; and (3) highlighting the role of makerspaces as embedded infrastructures that address specific social and economic challenges in rural regions. These insights advance theoretical understanding of rural entrepreneurship while offering practical implications for rural development initiatives.