Journal of Entrepreneurship Research

Journal of Entrepreneurship Research

Pathology and Prioritization of Factors Hindering the Development of Rural Businesses (A Case Study of Rural Area in Gachsaran County)

Document Type : Research Article

Authors
Hossein Zinati Fakhrabad
Seyed Amir Hossein Garkani
Sajad Amiri
Nabiallah Soltani Ghiathund
Center for Rural Development Studies, Natural Disaster Research Institute, Tehran, Iran.
10.22034/jer.2024.2005758.1045
Abstract
Introduction: Due to their inherent role in job creation and the development of creativity, rural businesses can play a significant role in creating a sense of hope and belonging among the villagers. Indeed, the development of rural businesses is an important factor in the sustainable development of countries and the enhancement of life quality within rural communities. These businesses can help create employment, increase local production, preserve local culture and heritage, and improve rural infrastructure. Nevertheless, even though rural businesses are vital components of economic activities in rural areas, they have not received much attention and their development is facing obstacles and limitations. In this regard, the present research was designed and carried out to identify and prioritize the factors hindering the development of rural businesses in the Gachsaran rural system.
Methodology: The research is a quantitative study in terms of the paradigm, an applied study in terms of the goal, and a descriptive survey in terms of data collection and analysis. The statistical population included the villagers with businesses in Gachsaran County. Based on Cochran's formula, the sample size was determined as 217, and the participants were selected by stratified random sampling with proportional assignment. The research instrument was a researcher-made questionnaire whose validity was confirmed by a group of experts and whose reliability was confirmed by calculating Cronbach's alpha coefficient. SPSS version 26 and LISREL version 8.8 software were used to analyze the data both descriptively and inferentially.
Findings: According to the results, the individual-personality factors, psychological factors, environmental, educational, and cultural barriers, and economic barriers were identified as the most important barriers to business development from the point of view of the participant villagers. In fact, it can be said that the rules governing the rural society, especially the family, such as the inability to speak in public, weak bargaining power in the profession and work, and not accepting responsibility are effective in the development and employment of home businesses and are among the factors and reasons for the reduced economic activities of villagers (men and women).
Conclusion/ Implications: Based on the factors identified for preventing rural businesses, it can be concluded that the development of rural businesses has failed to prosper properly due to various obstacles such as individual-personality, psychological, environmental, educational-cultural, and economic obstacles. Therefore, for the development of rural businesses, these obstacles should be identified and appropriate solutions should be provided to overcome them. Based on the results, the approaches to creating rural businesses at the regional level may include developing educational programs in the studied rural community to transform the cultural beliefs of families and the rural community regarding the capabilities of the villagers, providing facilities in line with the creation and development of small businesses for the villagers, and identifying and introducing successful entrepreneurs as successful models. 
Keywords
Rural Business
Rural Development
Rural Entrepreneurship

Subjects

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  • Receive Date 27 June 2023
  • Revise Date 09 January 2024
  • Accept Date 09 January 2024