Agricultural Economics
hasan Mehmandoost; Alireza Sargazi; Alireza Keikha; Saman Ziaee; Alireza sani heidari
Abstract
The research investigates the capacities and factors influencing the development of entrepreneurship in rural areas of Hamoun County. Given the significance of entrepreneurship in generating employment, reducing poverty, and enhancing the quality of life in rural regions, identifying and analyzing key ...
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The research investigates the capacities and factors influencing the development of entrepreneurship in rural areas of Hamoun County. Given the significance of entrepreneurship in generating employment, reducing poverty, and enhancing the quality of life in rural regions, identifying and analyzing key factors in this domain is essential. The study employed stratified random sampling, involving 278 entrepreneurs and individuals active in rural business sectors. The influential factors on entrepreneurship development were categorized into six main dimensions: human and individual factors, infrastructural, cultural, economic, and social. Data analysis utilized factor analysis and ordered logit modeling. The results from the factor analysis indicated that "government support and subsidies for production," "income," and "diversification of rural products" significantly contribute to the economic dimension of rural entrepreneurship development. In terms of cultural and social aspects, factors such as "experience," "consultation and support services," "awareness level," and "interest in village improvement" played a crucial role. For infrastructural factors, "access to services and facilities" and "access to a dynamic rural environment" were found to be pivotal in explaining overall variance. Lastly, individual factors like "motivation," "education," "psychological resilience," and "management creativity" were identified as significant contributors to this dimension. Additionally, the results from the ordered logit model revealed that among the influencing factors and barriers to entrepreneurship development, economic, cultural and social, institutional and educational, as well as infrastructural factors had a significant positive effect. Conversely, economic barriers and social obstacles negatively impacted the likelihood of individuals achieving high levels of entrepreneurial motivation. This research provides critical insights for policymakers, suggesting that they should prioritize determining factors for rural entrepreneurship development in their programs. Furthermore, it is recommended that policymakers reduce barriers to rural entrepreneurship and investment risks through subsidized support, low-interest loans, and micro-insurance funds.This research investigates the capacities and factors influencing entrepreneurship development in the rural areas of Hamun County. Given the importance of entrepreneurship in creating employment, reducing poverty, and improving the quality of life in rural regions, identifying and analyzing key factors in this context is essential. The significance of rural entrepreneurship lies not only in its potential to stimulate local economies but also in its ability to foster social cohesion and community development. As highlighted by Petrin (1992), entrepreneurship serves as a central force for economic growth in rural areas, and without it, other developmental efforts may prove ineffective. Thus, understanding the dynamics of rural entrepreneurship is crucial for policymakers and stakeholders aiming to enhance the livelihoods of rural communities. In light of the challenges and opportunities present in rural entrepreneurship, this article aims to identify effective factors influencing entrepreneurial development while reviewing existing literature. By categorizing these factors into human and individual, infrastructural, cultural, economic, and social dimensions, the study seeks to provide a comprehensive analysis that can inform future initiatives aimed at strengthening entrepreneurship in these areas. The findings are expected to offer practical recommendations for enhancing the entrepreneurial ecosystem in Hamun County. Materials and MethodsThe present study utilized a stratified random sampling method, involving 278 entrepreneurs and individuals active in rural business sectors. The research categorized influential factors into six primary groups: human and individual factors, infrastructural factors, cultural factors, economic factors, and social factors. Data analysis was conducted using Stata and Excel software to model relationships among these variables effectively. This structured approach allows for a nuanced understanding of how different factors contribute to or hinder entrepreneurial development in rural contexts. Results and DiscussionThe results indicate that "government support and subsidies for production," "income," and "diversification of rural products" play significant roles in explaining and influencing entrepreneurial behavior from an economic development perspective. In terms of cultural and social aspects, "experience," "consultation and support services," "awareness levels," and "interest in village improvement" were found to have substantial impacts on entrepreneurial behavior. From an infrastructural standpoint, "access to services and facilities" along with "access to a dynamic rural environment" emerged as critical determinants explaining the variance among extracted factors. Furthermore, regarding individual aspects of entrepreneurial development, findings revealed that "motivation," "education," "psychological resilience," and "management creativity" significantly contribute to explaining variations in behavior among entrepreneurs. The results indicated that among various influencing factors on entrepreneurship development, economic factors, cultural and social factors, institutional and educational factors, as well as infrastructural factors had positive and significant effects on the likelihood of individuals achieving high levels of entrepreneurial motivation. ConclusionAmong the identified indicators, government support and subsidies for production had a more substantial impact on income levels while diversification of rural products significantly influenced entrepreneurial behavior from an economic development perspective. In terms of cultural and social dimensions, experience, consultation services, awareness levels, and interest in village improvement were crucial for explaining variations in entrepreneurial behavior. From an infrastructural perspective, access to services and facilities alongside access to a dynamic rural environment played a decisive role in explaining the variance among extracted factors. Finally, individual development aspects revealed that motivation, education, psychological resilience, and management creativity significantly contributed to variations in behavior among entrepreneurs. The findings suggest that within the studied villages—specifically Mohammadabad, Ali Akbar Town, Dek Dehmardeh Town, Sanjoli Town, Mir Town, Bandei Town, and Kermani—there are ideal conditions for entrepreneurship compared to other assessed villages. Furthermore, using an ordered logit model revealed that economic indicators along with cultural-social factors significantly influence individuals' motivations for entrepreneurship. This expanded introduction provides a comprehensive overview of your research topic while highlighting its significance within the broader context of rural entrepreneurship development.Keywords: Entrepreneurship Development, Factor Analysis, Ordered Logit, Rural Areas, Hamun County