The study looked at how the perceived risk of starting a business in rural areas affects the amount of money entrepreneurs borrow and the location of their sales. They used data from 203 small businesses in southern Europe. The results showed that entrepreneurs are more likely to sell locally and seek less external funding when they feel less risk. Factors like the size of the business, the entrepreneur's experience, and where they sell their products all play a role in how risky they perceive their business to be. Helping rural businesses with non-financial support can help them succeed.