The Factors of effective on growth of entrepreneurship in rural areas Case: Jaber Ansar District Abdanan

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Abstract:

Introduction: Nowadays, low job offers, unemployment and rural poverty are being considered as a major driving force for rural- urban migration. This in turn may cause some problems both for rural and urban communities as well as some challenges with respect toachievement of sustainable rural communities.  Taking into account these challenges, entrepreneurs through their creative economic efforts could be helpful regarding economic improvement of rural areas. Even though the major motive behind this sort of activities is private benefit but they could provide proper atmosphere for entrepreneurial ship at local, regional and national level. Rural communities taking into account their physical, social and economic situations simultaneously could offer both opportunity and weakness regarding entrepreneurial ship. It is argued that the development of entrepreneurial activities in rural areas must be based on rural capabilities in order to be successful and head toward sustainability. Jaber Ansar district located in central part of Abdanan, taking into account its prominent characteristics including proximity to urban areas, possession of active handicraft, the existence of fertile agricultural lands and natural resource abundance, possess high entrepreneurial potentials at local and regionalnevel. The major objective of this study is to investigate sustainable rural development potential from entrepreneurial ship and employment aspect in the study area. Methodology: The type of study of this study is explorative. It is based on descriptive- analytical research method. It is further supported by documentation and field works including questionnaire, interviews and observation. The study area is Jaber Ansar district located in Abdanan. Statistical society is composed of head of households were selected through application of Cochran formula and random sampling technique. The questionnaires were composed of four components and 32 indicators related to entrepreneurial development and rural employment. The data analysis further demands application of descriptive statistics and principal component analysis and SPSS. Conclusion: According to principle component analysis results in the study area, eight factors including infra-structure, economic, awareness, self-confidence, personal creativity,innovative capabilities, physical infra structures and access to different facilities have prominent impacts upon sustainable development from entrepreneur aspects. These factors are capable of explaining 75.25% of the variation. Infra structural and social factor with eigenvalue of 5.63% is the major factor and is capable of explaining 17.60% of the variation. This is followed by economic factor as the second major one with the eigenvalue of 4.48%. It is capable of explaining 14.01 % of the variation. The least important factor is access to economic. Facilities eigenvalue is % 44 and capable of explaining 4.51% of the variation. It may be concluded that the improvement of appropriate public infra–structures including provision of drinking water, electricity and fuel, proper communications as well as transportation facilities, post banks, well designed and equipped transportation systems for shipping commodities to markets, access to skilled and literate labor force are all being considered as influential factors for provision of needed potentials and pave the way for entrepreneurship. It is argued that economic development in rural areas requires new strategies. This in turn is associated with entrepreneurship and environmental policies. Thus economically speaking entrepreneur plans in the study areas would be fairly effective needed for creation of occupation, special credit facilities sufficient funds for small businesses, awarding low interest rate and non-paying back loans especially in deprived areas are among some of the recommended measures.

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Journal title

volume 3  issue 9

pages  1- 16

publication date 2014-11

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