Identification of factors affecting entrepreneurship in rural areas of Shiraz County

Authors

  • Ayatollah Karami Associate Professor of agricultural economics, Yasouj University, Yasouj, Iran
  • Neda Aliyari Ph.D. Student of Agricultural Development, Yasouj University, Yasouj, Iran
Abstract:

Introduction Nowadays, the unemployment crisis has had irreparable effects as a fundamental problem on all the economic, social and cultural aspects of the community. So that the stability and destruction of some governments depends on solving the unemployment crisis. The issue of economic development has always been one of the main concerns of countries. There are two factors that affect development, productivity and entrepreneurship. Today, many social science researchers consider entrepreneurship as an effective strategy to fight poverty and save wealth in low-income societies. Comprehensive development can never be achieved without rural development. Therefore, rural policymakers have focused on developing small businesses, local entrepreneurs and regional business associations. Rural entrepreneurship is one of the most important issues discussed in the field of entrepreneurship in recent years and the most effective solutions for unemployment reduction, poverty reduction, immigration prevention, income diversification, agricultural and non-agricultural production increment, livelihood risk reduction, sustainable food security increment and is the most important source of innovation and job creation. It is also one of the main pillars of growth and development in developing countries, which is as an engine for economic development. Recently, there has been a lot of interest in promoting entrepreneurship as a means of stimulating local economic growth and development y. It is essential to know what makes people successful in becoming entrepreneurs. Policies are also needed in order to increase the entrepreneurial capacity of a community which has the greatest effect on the level of entrepreneurial activity.   Methodology The purpose of this study was to identification of factors affecting entrepreneurship in rural areas of Shiraz County. The present research is applied in terms of purpose and analytical descriptive in terms of data analysis conducted as a survey in this research. The data collection tool was a researcher-made questionnaire. The validity of the questionnaire was evaluated and confirmed through interviews with experts and its reliability through a pre-test (Cronbachchr('39')s Alpha ranged from 0.688 to 0.959). Data were collected randomly from 177 rural households living in Dasht-e-Arjan District of Shiraz County. Collected data was analyzed by different statistical methods such as Factor Analysis, k-means cluster analysis, diagnostic analysis and stepwise regression analysis.   Discussion and conclusion The results showed that based on the entrepreneurial situation, entrepreneurs could be divided into three clusters, called cluster 1 "non-entrepreneurs", cluster 2, "medium entrepreneurs" and cluster 3, "high level entrepreneurs". Also, the level of rural entrepreneurship in the study area is high (mean score= 3.42). According to the results, the determinants of the level of entrepreneurship in the study area includes: Responsive age, level of literacy, economic status, knowledge level, social status, environmental status, sense of place, innovation and pragmatism. Based on the results, the level of entrepreneurship in the studied region is high. This result shows the villagerschr('39') highly capability of entrepreneurship which itself confirms the need for research on its affecting factor. Therefore, according to the high level of rural entrepreneurship in the region, the need to create a suitable platform for entrepreneurial activities is tangible. Based on the results, the economic factor is the most important factor that determines the level of entrepreneurship in the studied region, which other researchers also emphasize on its importance. Entrepreneurs in the studied region, in particular, residents of the village of Chehel Cheshmeh, have provided their own funds with the use of their own capital and their relatives, as well as the accumulation of rural residentschr('39') micro capital and investors in creating employment, and are occupied to such jobs as, raising native chickens, beekeeping, fish breeding, cultivating medicinal plants, processing agricultural products and packaging. The importance of this factor confirms that by creating more favorable economic conditions, it is possible to provide a suitable platform for the development of entrepreneurship in the region. Therefore, it is suggested creating favorable conditions in this field by offering favorable banking facilities in the region, the provision of raw materials and equipment at reasonable prices, lowering input prices, using sufficient machinery and equipment, and choosing brand for the production unit or the product. Another important factor is the level of knowledge. Therefore, the level of knowledge plays an important role in transforming villagers into potential entrepreneurs. By improving knowledge in the region, the background to increase the villagerschr('39') level of entrepreneurship is provided and the status of entrepreneurship will be promoted to a higher level. Therefore, increasing the level of knowledge through the provision of information by media such as radio and television, training workshops in order to get familiar with absorbing customers, advertising and marketing techniques, get familiar with efficient banking networks and supportive plans, get familiar with tax laws, imports and exports, pricing and profitability, get familiar with the principles of innovation, technologies and new methods, and introduce the potential and actual opportunities of the environment are essential. Also, based on the results, variables including age and level of literacy have a negative effect on the level of entrepreneurship. In particular, in the village of Chehel Cheshmeh, this effect is obvious and all the inhabitants of the village except old people and educated people are employed and occupied with the entrepreneurial business using the potential of the village. Hence, it seems essential to create the appropriate conditions in order to attract and act of these people in the field of entrepreneurship. In this regard, it is recommended that the planners set applied content of the courses and academic activities, as well as in line with the development of entrepreneurship and acquisition of skills in this field.

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Journal title

volume 10  issue 35

pages  195- 212

publication date 2021-04

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