The paper presents and discusses new evidence on the nature and causes
of the urban-rural shift of business activity and employment in Engla
nd, derived from a matched pairs survey of over 1000 manufacturing and
service businesses in remote rural, accessible rural and urban settle
ments. It reveals faster employment growth in rural firms, highlights
the migration origins of and environmental influences on rural firm fo
unders, and identifies significant urban-rural differences in the ente
rprising behaviour of companies. The implications of these findings fo
r a new theoretical understanding of the reasons for the urban-rural s
hift are explored.