3.

2 Research

Overall this is in-depth research of the fundamental truths and ramifications for building a
company in a rural area. Topics considered are tourism, restaurant entrepreneur personalities,
migration and the information age, rural development history, cost, and potential locations. It
was hard finding old sources that provided information beneficial information.

Past Attempts:

1)

Rudzitis, Gundars. "http://ljournal.ru/wp-content/uploads/2017/03/a-2017-023.pdf." Amenities

Increasingly Draw People to the Rural West 14.2 (1998 ): n. pag. Web. 07 July 2017.

Author attempts to explain why people want to move out to the rural west. Surveys are
used from the 1970s and the 1980s. Both surveys concluded that people wanted to move out to
the west. Most people included in this survey were young, however only 10 percent of the
new migrants were only 65 years of age. Instead, migrants were more likely to be young, high
educated professionals. Also, main cause of moving was not due to employment or to live in a
place of less crime but for environmental quality the paper states.
There is an indeed a trend to move out to the rural west. Per the paper by Colorado state
university: job related reasons are cited by only 30 percent of the respondents in two surveys.
People want to see greater environmental stewardship of the Federal land surrounding their
communities. People are wanting to move to the rural west. This paper states not for work
opportunities but to leave in general. People are moving to the west, therefore there is an
opportunity to capitalize on this migration trend. People who can capitalize are investors (the
client) and entrepreneurs that develop in these new sought after destinations.

2)

Somers, K. "Joan Frieda Trevelyan (nee Scott)." Bmj 338.Mar06 2 (2009): n. pag. Web.

Article explains other factors on urban development. The article concludes that the main
force is establishing the community as an attractive place to live and work:

Institutional effects refer to the social infrastructure of the local community available for
engaging in development activity, the human service elements that establish a community
as an attractive place to live and work

The article garners from the idea that if it is built people with flock to it. This is beneficial to
people who build in the area first.

II. Current attempted solutions to the problem

1)

Ivanov, Stanislav. "Measuring the Impact of Tourism on Economic Growth in Bulgaria

(in Bulgarian)." SSRN Electronic Journal 2007th ser. 13.3 (2007): n. pag. Web.
<http://journals.sagepub.com/doi/abs/10.5367/000000007781497773>.
3.2 Research

Author attempts explains a to model how tourism affects an economies growth. This
paper is done in Cyprus, Greece, and Spain. Explains the absolute need for tourism and its affect
on GDP (gross domestic product). Methods the author uses is the Tourism Satellite Account and
the Computable General Equilibrium (CGE). TSA measures tourism by measuring certain
variables such as the gross value added but does not measure gross domestic product. CGE takes
advantage of inter-industry feedback effects and resource constraints, one such feedback in
this modeling are noticing increase in airport activity.
Article repeatedly states positive impact of tourism on an economy. Due to this more
money, could be found for the restaurant. Local grants may be available to apply to due to the
symbiotic relationship between tourism and GDP. A government may be interested in giving
grants due to their need for positive GDP. Although the government is not the client they are a
substitute or additive to the investment process. Furthermore, an additive would benefit an
investor as their risk would decrease.

2)

Ramos-Rodrguez, Antonio Rafael, Jos Aurelio Medina-Garrido, and Jos Ruiz-Navarro.

"Determinants of Hotels and Restaurants entrepreneurship: A study using GEM
data." International Journal of Hospitality Management 31.2 (2012): 579-87. Web.

Article models the variables that connect a restaurant and its entrepreneur to success.
Variables that are looked upon are: demographics, economic variables, personal traits, and the
individuals intellectual and social capital. This article uses logistic regression techniques that
sample about 34,000 individuals. Data that had the highest correlation of entrepreneur success in
the restaurant business are ability to pierce opportunities, perception of entrepreneurial ability,
and knowing other entrepreneurs and business angels. Means of traits observed by the sample of
individuals observed that there was a high probability (when including standard deviations) that
an entrepreneur success was due to attractive profession, social status, perception of and
entrepreneurial ability. Work status (if person worked part time, or full time) had the lowest
probability with one of the highest negative correlations. It seems social status and attractive
profession were the highest indicators of success to this study. Furthermore, the trait attractive
profession was described as individuals [the entrepreneur] perceptions of what their social
environment considers acceptable or not will influence their propensity to create a firm.
How does this all relate to starting a restaurant? If this study is taken seriously all
positively correlated and high probability traits should be looked for when investing into an
entrepreneur. Therefore, when trying to persuade an investor (client) to be involved these traits
must be trained or peacocked. The entrepreneur is the attempt to the problem.

3)

Bosworth, Gary, and Jane Atterton. "Entrepreneurial In-migration and Neoendogenous Rural
Development." Rural Sociology 77.2 (2012): 254-79. Web. 07 July 2017 .
Text explains addresses counterurbanization and changing the way at how rural
development is looked. The article uses neoendogenous development theories or more
3.2 Research

practically how social, educational, and economic capital are correlated. Article states that
agriculture jobs are being dropped but are being replaced by tourist type businesses. Specifically
stating that, new business start-ups have been generated by in-migrants moving into rural areas
by enterprises moving out of urban centers to take advantage of improved transport and
communications infrastructure and reduced congestion. Also, further states, some rural
dwellers travel longer distances to work in urban centers, having chosen residential location for
concerns over quality of life. The author continues to state how rural lifestyles will compete
with the urban.
This article gives further support of why to invest rurally. There seems to be a trend of
an increase demand for the rural lifestyle. People who plant the roots will sow fruits of labor
later. Wherever there is an increase of rural living there is an increase of all things that are of
living such as a restaurant.

III. Specific details to your solution.

1)

"Examples of Expenses for a Restaurant Business." Chron.com. N.p., n.d. Web. 07 July 2017.

It is known that a restaurant should have enough money put aside to last for a year
without much business. Other overhead cost includes labor costs, costs of goods sold,
marketing, occupancy expenses, repairs, and administrative cost. Admin cost can be reduced to
zero in the beginning stages as the entrepreneur should be the manager.

2)

Koriakin, Christie. "Gods country, renters hell." Planet Jackson Hole. THE BUZZ, June & July
2014 . Web. 07 July 2017.

Teton county, Idaho. In this area located thirty minutes from tourist destination Jackson
Wyoming sites that many are moving outside Jackson for cheaper living. This would be a
perfect destination as developmental properties are still affordable.

3)

Hawkins, Chris , and Hal Hutchinson. Telluride Masterplan 2006. N.p.: n.p., n.d. Print.

Surrounding area Telluride, Colorado. Although Telluride has already been developed
the town plans to work with local regions to further develop to meet the needs of its growing
population. The Telluride master plan states: efforts will be made through the planning
process to address the full range of impacts for traffic-generating land uses located outside of
town. Another potential spot to build a profit generating restaurant.