Analysis of the factors affecting probable failure of local entrepreneurs

Abstract

Purpose This study aims to investigate and analyze the factors affecting the probable failure of rural entrepreneurs so that the most important factors responsible for failure in the business of small and local entrepreneurs are identified. Design/methodology/approach The present survey was conducted through the descriptive-analytical method by using a researcher-made questionnaire. The statistical population of the study included 1,641 greenhouse owner entrepreneurs in five rural communities. To clarify the key criteria affecting probable failure of greenhouse businesses, LISREL 8.8 computer software was used and the effects of selected indices on the process of probable failure of entrepreneurs were assessed using stepwise regression in the SPSS computer application environment. Findings According to the results, individual and managerial skills factors, deterrent financial and legal issues, social barriers and infrastructural issues investigated in this study were of the first to the fourth priorities in clarifying factors affecting probable failure of greenhouse businesses. Considering the intragroup relations in these factors, it could be said that individual and managerial skills factors and infrastructural issues had the highest correlation coefficient which could be attributed to individual and management weaknesses of entrepreneurs in understanding infrastructural issues as the most important parameters to be considered in starting businesses. Originality/value So far, few studies analyzed the failure of rural entrepreneurs and evaluated the probable factors affecting it. Thus, the present study is among the earliest instances in the field and its results could be of great benefit to domestic entrepreneurs and similar cases in other countries.

Evolution, roots and influence of the rural entrepreneurship literature: a bibliometric account

“…The concepts such as motivations, individual skills and human capital are subtopics of psychological traits. Qeidari et al (2020) concluded that individual and managerial skills are among the priorities in clarifying factors affecting probable failure of greenhouse businesses. Ataei et al (2020) analyzed entrepreneurial competencies (including entrepreneurial vigilance, networking ability, individualism, tolerance of ambiguity and market analysis) required for launching enterprises by rural youth.…”