Assessing the challenges facing entrepreneurship in small-scale agricultural businesses in rural areas, case study: Khodabandeh Township

Document Type : Original Article

Authors
1 PhD Student in Geography and Rural Planning, Faculty of Humanities, University of Zanjan, Zanjan, Iran
2 Associate Professor of Geography and Rural Planning, Faculty of Humanities, University of Zanjan, Zanjan, Iran
3 Master's student in Geography and Tourism Planning, Faculty of Humanities, University of Zanjan, Zanjan, Iran
Abstract
The aim of the present study is to investigate the challenges faced by rural entrepreneurs in small-scale agricultural activities in Khodabandeh County, Zanjan Province. The statistical population of the study consisted of 325 people using bank credits in the field of agricultural entrepreneurship with the introduction of the Agricultural Jihad in the period from 1390 to 1400 in rural areas of Khodabandeh . Due to time and cost constraints, 257 of them were selected as samples using the Cochran formula. One-sample t-tests and exploratory factor analysis were used for quantitative data analysis. The results of the one-sample t-test show that macro-environmental forces and economic factors with numerical means of (3.97) and (3.53) are the most important challenges in starting and developing small-scale agricultural entrepreneurship from the perspective of rural entrepreneurs. Also, the results of the factor analysis of the challenges faced by small-scale agricultural entrepreneurs, considering the value of the KMO statistic (0.836) and the significance of the Bartlett test at the 99 confidence level, show that the research variables are categorized into 6 factors: regulations and financing (21.20); education and infrastructure (13.96); start-up costs and market fluctuations (11.38); production organizations and trust (9.66); personality traits (8.21) and group cooperation (7.69), which together account for 72% of the variance.
Keywords

حجی‌‌پور، محمد. (1400). پدیدارشناسی فضای کارآفرینی و کسب وکار روستایی در مناطق منتخب ایران (با تاکید بر چالش های زیسته)، مجله جغرافیا و توسعه، 19(47)، 75-45.
رشیدیان، فاطمه، کلانتری، خلیل و براتی، علی اکبر. (1400). چالش ها و راهکارهای توسعه کارآفرینی روستایی در شهرستان بهار، نشریه مطالعات کارآفرینی و توسعه پایدار کشاورزی، 8(4)، 20-1.
زارع چاهوکی، محمدعلی. (1389). روشهای تحلیل چند متغیره، انتشارات دانشگاه تهران.
عینالی، جمشید. (1403). ارزیابی نقش کارآفرینی و توسعه اقتصادی در مناطق روستایی، مطالعه موردی: روستاهای محور زنجان- تاکستان در استان زنجان، فصلنامه برنامه ریزی منطقه ای، 14(56)، 59-45.
رشادی، منوچهر. (1403). شناسائی چالش های رشد و توسعه کارآفرینی روستایی در روستاهای استان همدان، نشریه توسعه محلی (روستایی - شهری)، 15(2)، 319-335.
شاهرخی ساردو، صالح و شریف زاده، مریم. (1402). پدیدارشناسی چالش های توسعه کارآفرینی روستایی از دیدگاه کارآفرینان پیشرو در بخش مرکزی شهرستان جیرفت، نشریه آموزش و مدیریت کارآفرینی، 1(1)، 19-34.
محمدی یگانه، بهروز، عینالی، جمشید و بیگدلی، اعظم. (1395). نقش کارآفرینی در توسعه مناطق روستایی با تأکید بر گردشگری (مورد: دهستان حصار ولیعصر- شهرستان آوج)، فصلنامه علمی برنامه ریزی منطقه‌ای، 6(21)، 193-204.
Abor, J., & Quartey, P. (2010). Issues in SME development in Ghana and South Africa. International research journal of finance and economics, 39(6), 215-228.
Acharya, S. S. (2006). Sustainable agriculture and rural livelihoods. Agricultural Economics Research Review, 19(2), 205-217.
Alemu, A. E., & Adesina, J. O. (2017). In search of rural entrepreneurship: Non‐farm household enterprises (NFEs) as instruments of rural transformation in Ethiopia. African Development Review, 29(2), 259-271.
Al-Kilani, M., & Meyer, R. (2022). Necessity Entrepreneurship in Ruminant Lebanese Agriculture: Business: Model Sustainability. Interdisciplinary Journal of Economics and Business Law, 11(3), 53-72.
Altieri, M. A. (2009). Agroecology, small farms, and food sovereignty. Monthly review, 61(3), 102-113.
Ataei, P., Ghadermarzi, H., Karimi, H., & Norouzi, A. (2020). The barriers hindering the application of the value chain in the context of rural entrepreneurship. The Journal of Agricultural Education and Extension, 26(4), 365-382.
Baloch, M. A., Khan, S. U. D., & Ulucak, Z. Ş. (2020). Poverty and vulnerability of environmental degradation in Sub-Saharan African countries: what causes what?. Structural Change and Economic Dynamics, 54, 143-149.
Baskaran, A., Chandran, V. G. R., & Ng, B. K. (2019). Inclusive entrepreneurship, innovation and sustainable growth: Role of business incubators, academia and social enterprises in Asia. Science, Technology and Society, 24(3), 385-400.
Bignotti, A., Antonites, A. J., & Kavari, U. J. (2021). Towards an agricultural entrepreneurship development model: an empirical investigation in Namibia’s agricultural communities. Journal of Enterprising Communities: People and Places in the Global Economy, 15(5), 684-708.
Bosma, N., & Sternberg, R. (2017). Entrepreneurship as an urban event? Empirical evidence from European cities. In Entrepreneurship in a Regional Context (pp. 78-95). Routledge.
Bosworth, G. (2012). Characterising rural businesses–Tales from the paperman. Journal of Rural Studies, 28(4), 499-506.
 Bruyat, C. (1993). Création d'entreprise: contributions épistémologiques et modélisation. Doctoral dissertation, Université Pierre Mendès-France-Grenoble II.
Calisir-Hovardaoglu, S., & Hovardaoglu, O. (2020). Next Generation Tourism Entrepreneurs in Rural Turkey: New Modes of Integration Between Tourism and Agriculture. In Handbook of Research on Agricultural Policy, Rural Development, and Entrepreneurship in Contemporary Economies (pp. 220-240). IGI Global.
Cohen, D., Hsu, D. K., & Shinnar, R. S. (2021). Identifying innovative opportunities in the entrepreneurship classroom: A new approach and empirical test. Small Business Economics, 57(4), 1931-1955.
Cunha, C., Kastenholz, E., & Carneiro, M. J. (2020). Entrepreneurs in rural tourism: Do lifestyle motivations contribute to management practices that enhance sustainable entrepreneurial ecosystems?. Journal of hospitality and tourism management, 44, 215-226.
Dai, S., Wang, Y., & Liu, Y. (2019). The emergence of Chinese entrepreneurs: social connections and innovation. Journal of Entrepreneurship in Emerging Economies, 11(3), 351-368.
De Brauw, A. (2019). Migration out of rural areas and implications for rural livelihoods. Annual Review of Resource Economics, 11(1), 461-481.
Dhewanto, W., Ratnaningtyas, S., Permatasari, A., Anggadwita, G., & Prasetio, E. A. (2020). Rural entrepreneurship: towards collaborative participative models for economic sustainability. Entrepreneurship and Sustainability Issues, 8(1), 705.
Dias, C.S.L., Rodrigues, R.G., Ferreira, J.J. (2019). Agricultural entrepreneurship: Going
back to the basic
. Journal of Rural Studies, 70, 125-138.
Drummond, C., McGrath, H., & O'Toole, T. (2018). The impact of social media on resource mobilisation in entrepreneurial firms. Industrial Marketing Management, 70, 68-89.
Einali, J. (2024). Evaluation of the role of entrepreneurship and economic development in rural areas, case study: Zanjan-Takestan axis villages in Zanjan province. Regional Planning, 14(53), 45-60.
Gartner, W. B. (1990). What are we talking about when we talk about entrepreneurship? Journal of Business Venturing, 5(1), 15-28,
Głodowska, A., & Wach, K. (2022). Entrepreneurship research in Central and Eastern Europe: A systematic literature review and bibliometric analysis. Journal of International Studies, 15(3).
Güzel, Ö., Ehtiyar, R., & Ryan, C. (2021). The Success Factors of wine tourism entrepreneurship for rural area: A thematic biographical narrative analysis in Turkey. Journal of Rural Studies, 84, 230-239.
Hilson, G., Goumandakoye, H., & Diallo, P. (2019). Formalizing artisanal mining ‘spaces’ in rural sub-Saharan Africa: The case of Niger. Land Use Policy, 80, 259-268.
Hoz Rosales, B. D. L., Camacho Ballesta, J. A., & Tamayo Torres, I. (2019). Effects of innovative entrepreneurship and the information society on social progress: an international analysis. Entrepreneurship and Sustainability Issues 7(2):782-813.
Igwe, P. A., Rahman, M., Odunukan, K., Ochinanwata, N., Egbo, P. O., & Ochinanwata, C. (2020). Drivers of diversification and pluriactivity among smallholder farmers—evidence from Nigeria. Green Finance, 2(3), 263-283.
Ihugba, O. A., Odii, A., & Njoku, A. C. (2014). Theoretical analysis of entrepreneurship challenges and prospects in Nigeria. International Letters of Social and Humanistic Sciences, 5, 21-34.
Islas-Moreno, A., Muñoz-Rodríguez, M., Santoyo-Cortés, V. H., Aguilar-Gallegos, N., Martínez-González, E. G., & Morris, W. (2023). Understanding the process of agricultural entrepreneurship: perspective from strategic movements and entrepreneurial families. Journal of Agribusiness in Developing and Emerging Economies, 13(2), 323-341.
Kapoor, S. (2019). Entrepreneurship for economic and social empowerment of women: A case study of a self help credit program in Nithari Village, Noida, India. Australasian Accounting, Business and Finance Journal, 13(2), 123-142.
Ivari, A. A., Jafari, H., & Ahmadian, M. A. (2021). Evaluating the performance of modern rural management (Dehyari) in improving social contexts and attracting financial resources for the development of rural entrepreneurship in Khalilabad. Propósitos y Representaciones, (SPE3), e1118-e1118.
Khan, S. N., Anjum, K., Baig, F. J., Afzal, C. M., & Asghar, R. N. (2022). Role of Microfinance on Women Entrepreneurship Leads to Decrease in Poverty: Evidence from the Rural Area of South Punjab. Competitive Social Science Research Journal, 3(1), 147-160.
Kurdys-Kujawska, A., & Sompolska-Rzechula, A. (2020). Subsidization of entrepreneurship in rural areas in Poland: Scale, effects and regional diversity. European Research Studies Journal, Volume XXIII, Issue 2, 246-263
Kumar, R., & Raj, T. (2019). Role of entrepreneurship in boosting economic growth and employment in India. SEDME (Small Enterprises Development, Management & Extension Journal), 46(4), 273-281.
Kusio, T., Kudełko, J., Borges, A., Delic, A., & Stroila, I. (2022). Are there any differences in rural development challenges within European countries? Social and economic contexts from EU rural leaders. International Food and Agribusiness Management Review, 25(5), 737-756.
Lackéus, M. (2018, May). Classifying entrepreneurial education into five basic types through four questions grounded in definitions of entrepreneurship. In Paper präsentiert im Rahmen der 3E2018 Konferenz (Vol. 16, No. 18.5).
Lebambo, M., & Shambare, R. (2020). Entrepreneurship development framework for smallscale rural tourism establishments in South Africa. African J. Hosp. Tour. Leis, 9, 1-19.
Lee, H. J. (2019). What factors are necessary for sustaining entrepreneurship?. Sustainability, 11(11), 3022.
Li, R., Wang, T., & Zhou, M. (2021). Entrepreneurship and household portfolio choice: Evidence from the China Household Finance Survey. Journal of Empirical Finance, 60, 1-15.
Loizou, E., Karelakis, C., Galanopoulos, K., & Mattas, K. (2019). The role of agriculture as a development tool for a regional economy. Agricultural Systems, 173, 482-490.
Lubberink, R., Blok, V., van Ophem, J., & Omta, O. (2019). Responsible innovation by social entrepreneurs: an exploratory study of values integration in innovations. Journal of Responsible Innovation, 6(2), 179-210.
Lundberg, H., & Rehnfors, A. (2018). Transnational entrepreneurship: opportunity identification and venture creation. Journal of International Entrepreneurship, 16, 150-175.
Macours, K., Premand, P., & Vakis, R. (2022). Transfers, Diversification and Household Risk Strategies: Can productive safety nets help households manage climatic variability?. The Economic Journal, 132(647), 2438-2470.
Mansoori, Y. (2017). Enacting the Lean Startup Methodology: The Role of Vicarious and Experiential Learning Processes. International Journal of Entrepreneurial Behavior and Research, 23(5): 812-838.
Mashamaite, K.A. (2023). Rural entrepreneurship and its implications on local economic
development: a case of Mogalakwena Local Municipality
, Waterburg District, Limpopo Province (Doctoral dissertation). Polokwane
McClellan, S. (2021). Theorizing new deal farm policy: broad constraints of capital accumulation and the creation of a hegemonic relation. In Towards A New Political Economy Of Agriculture (pp. 215-231). Routledge.
Mcclelland, D. C. (1967). The achieving society, Simon and Schuster.
Miles, M. P., & Morrison, M. (2020). An effectual leadership perspective for developing rural entrepreneurial ecosystems. Small Business Economics, 54(4), 933-949.
Mohammadi Yeganeh, B., Eynali, J., & Bigdeli, A. (2016). The Role of Entrepreneurship in Rural Areas Development by Emphasis on Tourism (Case Study: Hesar-e-valiasr County- Avaj Township). Regional Planning, 6(21), 193-204.
Muñoz, P., & Kimmitt, J. (2019). Rural entrepreneurship in place: An integrated framework. Entrepreneurship & Regional Development, 31(9-10), 842-873.
Nwankwo, F.O. & Okeke, C.S. (2017). Rural entrepreneurship and rural development in Nigeria, Africa’s Public Service Delivery and Performance Review 5(1), a152.
Paladan, N. N. (2021). Entrepreneurship Capacity of Farmers for Community Based Entrepreneurship. The Asian Journal of Technology Management, 14(3), 231-245.
Pan, Y., Zhang, S., & Zhang, M. (2024). The impact of entrepreneurship of farmers on agriculture and rural economic growth: Innovation-driven perspective. Innovation and Green Development, 3(1), 100093.
Papageorgiou, G., Mihai-Yiannaki, S., Ioannou, M., Varnava-Marouchou, D., & Marneros, S. (2021, February). Entrepreneurship education in an era of digital communications. In Universities and entrepreneurship: Meeting the educational and social challenges (pp. 65-77). Emerald Publishing Limited.
Paudel Khatiwada, S., Deng, W., Paudel, B., Khatiwada, J. R., Zhang, J., & Su, Y. (2017). Household Livelihood Strategies and Implication for Poverty Reduction in Rural Areas of Central Nepal. Sustainability, 9(4), 612.
Pradhan, R. P., Arvin, M. B., Nair, M., & Bennett, S. E. (2020). The dynamics among entrepreneurship, innovation, and economic growth in the Eurozone countries. Journal of Policy Modeling, 42(5), 1106-1122.
Pinelli, M., Lechner, C., Kraus, S., & Liguori, E. (2022). Entrepreneurial value creation: conceptualizing an exchange-based view of entrepreneurship. Journal of Small Business and Enterprise Development, 29(2), 261-278.
Pushak, Y., Lagodiienko, V., Basiurkina, N., Nemchenko, V., & Lagodiienko, N. (2021). Formation the system for assessing the economic security of enterprise in the agricultural sector. Business: Theory and Practice, 22(1), 80-90.
Radosavljević, D., Josipović, S., Kokeza, G., & Urošević, S. (2022). A new model of rural development based on human capital and entrepreneurship. Economics of Agriculture, 69(2), 595-611.
Rae, D. (2000). Understanding entrepreneurial learning: a question of how? International Journal of Entrepreneurial Behaviour & Research, 6(3), 145-159.
Ramar, N. (2023). Agricultural Entrepreneurship: Problems in India. Shanlax International Journal of Management, 11(1), 38-42.
Ramon, I. O., & James, O. T. (2021). Counter-urbanization, entrepreneurship and sustainable rural development in developing countries: The Nigerian example. Urban and Regional Planning, 6(1), 47-56.
Rashid, S., & Ratten, V. (2021). Commodifying skills for survival among artisan entrepreneurs in Pakistan. International Entrepreneurship and Management Journal, 17, 1091–1110.
Ratten, V. (2020a). Coronavirus (covid-19) and entrepreneurship: changing life and work landscape. Journal of Small Business & Entrepreneurship, 32(5), 503–516.
Ratten, V. (2020b). Coronavirus and international business: An entrepreneurial ecosystem perspective. Thunderbird International Business Review, 62(5), 629–634.
Ratten, V. (2021). COVID-19 and entrepreneurship: Future research directions. Strategic Change, 30(2), 91–98
Ratten, V. (2023). Entrepreneurship: Definitions, opportunities, challenges, and future directions. Global Business and Organizational Excellence, 42(5), 79-90.
Ratten, V., & Jones, P. (2021). Covid-19 and entrepreneurship education: Implications for advancing research and practice. The International Journal of Management Education, 19(1), 100432.
Rostiana, E., Djulius, H., & Sudarjah, G. M. (2022). Total Factor Productivity Calculation of the Indonesian Micro and Small Scale Manufacturing Industry. Ekuilibrium: Jurnal Ilmiah Bidang Ilmu Ekonomi, 17(1), 54-63.
Salami, A., & Kounagbe Lokonon, B. O. (2018). Entrepreneurship and Farm Profit in Rural Niger. International Association of Agricultural Economists (IAAE) > 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia.
Salim, M., & Anis, J. (2018). Supporting rural entrepreneurship: Role and importance of rural entrepreneurship in Tunisia. International Journal of Management and Development Studies, 7(3), 35-45.
Sathya, I. (2019). Rural entrepreneurship in India. Research Explorer-A Blind Review and Refereed Quarterly International Journal, 7(2).
Saxena, S. (2012). Problems faced by rural entrepreneurs and remedies to solve it. Journal of Business and Management, 3(1), 23-29.
Setini, M., Yasa, N. N. K., Supartha, I. W. G., Giantari, I. G. A. K., & Rajiani, I. (2020). The passway of women entrepreneurship: Starting from social capital with open innovation, through to knowledge sharing and innovative performance. Journal of Open Innovation: Technology, Market, and Complexity, 6(2), 25.
Shah, J., & Alharthi, M. (2024). Risk sources in agriculture and farmers’ behavior in risky prospects: a systematic review. Management & Sustainability: An Arab Review, 3(2), 169-196.
Shane, S. A. (2003). A general theory of entrepreneurship: The individual-opportunity nexus, Cheltenham, UK, Edward Elgar Publishing.
Singgalen, Y. A., Sasongko, G., & Wiloso, P. G. (2019). Social Capital and Livelihood Diversification: Tourism Entrepreneurship in a Remote Area of North Halmahera, Indonesia. Jurnal Kawistara, 9(3), 286-298.
Smirnov, V. (2016). Entrepreneurship as the Creation of the New Capital. Journal of Advanced Research in Law and Economics (JARLE), 7(22), 2192-2200.
Steiner, A., & Cleary, J. (2014). What are the features of resilient businesses? Exploring the perception of rural entrepreneurs.  The Journal of Rural and Community Development, 9(3), 1-20.
Tracey, P., Phillips, N., & Jarvis, O. (2011). Bridging institutional entrepreneurship and the creation of new organizational forms: A multilevel model. Organization science, 22(1), 60-80.
United Nations (2015), The Least Developed Countries Report 2015: Transforming Rural Economies, chapter 3: economic diveRsification, non-faRm activities and Rural transformation United Nations Conference on Trade and Development, UNCTAD/LDC/2015
Utami, D. D., Dhewanto, W., & Lestari, Y. D. (2023). Rural tourism entrepreneurship: A systematic literature review on resources and challenges. Tourism and Leisure, 12.
Uzgoren, E. (2020). Retreat from Globalisation? Crises of Liberal Hegemony and Rising Populism, Crowther, D. and Quoquab, F. (Ed.) CSR in an age of Isolationism (Developments in Corporate Governance and Responsibility, Vol. 16), Emerald Publishing Limited, Leeds, pp. 35-52.
Wieliczko, B., Kurdyś-Kujawska, A., & Sompolska-Rzechuła, A. (2020). Savings of small farms: Their magnitude, determinants and role in sustainable development. example of Poland. Agriculture, 10(11), 525.
Woods, M. (2010). Rural. Abingdon, England: Routledge.
Wosiek, M., & Czudec, A. (2019). The relationship between the entrepreneurship and the local environment: evidence from Poland.‏ European Research Studies Journal, 22(4), 262-289.
Wynn, M., & Jones, P. (2019). Context and entrepreneurship in knowledge transfer partnerships with small business enterprises. The International Journal of Entrepreneurship and Innovation, 20(1), 8-20.
Yoshida, S., Yagi, H., & Garrod, G. (2020). Determinants of farm diversification: entrepreneurship, marketing capability and family management. Journal of Small Business & Entrepreneurship, 32(6), 607-633.
Zvavahera, P., Chigora, F., & Tandi, R. (2018). Entrepreneurship: An engine for economic growth. International Journal of Academic Research in Business and Social Sciences, 8(11), 55-66.
Zinchuk, T., Kutsmus, N., Kovalchuk, O., & Charucka, O. (2018). Challenges of sustainable development of rural economy. Management Theory and Studies for Rural Business and Infrastructure Development, 40(4), 609-619.

  • Receive Date 25 July 2024
  • Revise Date 26 September 2024
  • Accept Date 23 February 2025
  • Publish Date 20 March 2025