Failed entrepreneurship in a heterotopia: the story of Villa Ahumada

Abstract

Abstract Purpose The heterotopia is frequently portrayed as a third space in organization studies, characterized by its flexibility and receptivity to innovation. Rural entrepreneurship, embodied in the heterotopic space of community-based enterprises (CBEs), is a key concept in emerging economies. Understanding the CBE’s economic and social dynamics is vital for the genesis of entrepreneurship in these spaces, for regional development and for national economies. This paper aims to deep dive into the group dynamics of Villa Ahumada (VA), a well-known subspace located close to the Mexico–USA border, which, despite its market potential, has not been able to support the collectivization required of a CBE.

Design/methodology/approach Under a case study design, four deep interviews were conducted, which explore the stories of entrepreneurship in VA and analyze the rich narrative accounts of the participants. Narratives offer opportunities for extending the current conceptualizations of entrepreneurship and its processes.

Findings This paper opens a conversation about the negative aspects of heterotopias, especially with regards to entrepreneurship. Much literature has been devoted to the power of rural communities and peasant villages as fertile places for entrepreneurship. They emphasize the role of entrepreneurial culture and governmental support as almost guarantors of entrepreneurial success. This narrative provides one reason for entrepreneurial failure: the deviant heterotopia. Despite government policy that favored collective entrepreneurial efforts, and despite a vibrant underground entrepreneurship culture combined with a valuable brand, entrepreneurship in VA was dead before it started.

Originality/value Rural entrepreneurship should be a multidimensional phenomenon focusing upon entrepreneurship, context, group dynamics and social capital; but it has not been interpreted from the perspective of a heterotopia or paratopia.