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This paper examines the development of Internet‐based, virtual business forums and their potential for overcoming some of the difficulties faced by business owners in rural areas. Rural environments provide challenges for business owners due to limited local markets and limited access to resources. The paper examines the success of collective action by business owners in rural environments in Scotland to establish Internet‐based business forums that seek to meet such challenges. Using case study methodology, the paper finds variable experiences and proposes a model of the process of collective action.

The purpose of this paper is to identify factors associated with business success, measured through employment growth, in a sample of rural Scottish businesses.

The use of telephone interviews was used to construct a dataset based on the outcome of 399 interviews. These covered the motivations for starting the business, and current ambitions for the business, as well as background information on the history of the business, personal characteristics of the owner and reasons for choosing a rural location for the business. Data are analysed using both descriptive and inferential statistical techniques.

It was found that the most important determinants of employment growth were the development of national and international markets and recent acquisition of control of the business. A pattern of ownership in which many businesses passed from one owner to another was also found. We did not find that owners who had moved to the area were able to generate more rapid growth.

The pattern of acquisition of ownership was not expected, and warranted further investigation.

There may also be value in further research into effective mechanisms for providing public support for businesses that have a change of ownership, similar to that provided at start‐up.

The paper provides further evidence of the importance of external orientation for rural businesses. It also confirms that recent acquisition is associated with rapid employment growth.

There is much evidence that information and communication technologies (ICTs) are drivers of economic growth. As a result, government is keen to promote ICT take‐up, particularly where there is economic development need. The rural economy in most countries is regarded as that which requires intervention in order to foster sustainability and development, and there have been many empirical studies of both the value and the use of ICTs in rural areas. These are, however, highly disparate, often being industry‐, country‐ and, indeed, type‐of‐technology‐specific. Aims to draw together the highly eclectic literature on the use of ICTs in rural small to medium‐sized enterprises (SMEs) in order to provide an overview of generic issues, relevant to policy.

Comprises a literature review, based on academic, government and agency publications, and provides commentary on emergent issues, particularly those relating to policy recommendations.

Finds that there is a lag in rural uptake of ICTs and that the reasons for this include both supply and demand failures. From a policy perspective the review notes that intervention is best directed via a multi‐channel approach.

The value of the paper lies in the provision, for the first time, of a coherent review of findings and implications of the many research studies and informed commentaries on ICT up‐take by SMEs, particularly in rural areas, thus providing a more sound basis for understanding the implications for, and informing, those involved in policy intervention and support.