Investigating the Effective Factors of the Formation and Development of Small and Medium Entrepreneur Companies (SMEs) in the Villages (Case Study: Villages of Ilam Province)

Development of Small and Medium-Sized Enterprises (SMEs) is a key indicator for rural development.This makes sustainable security in the region and reverses migration. Rural Development is considered as the basic and important basis for national development in each country. Creating and developing small businesses is one of the most suitable approaches for empowering villagers. This study is quantitative, and its purpose and nature is practical, in terms of data collection is descriptive - survey. For data analysis, SPSS software was used as the main software and LISERL software as a help application for factor analysis (exploratory) The statistical population of the study consisted of experts and administrators of the Jihad-e-Agriculture Organization of Ilam province, rural economic activists (rural entrepreneurs and co-operatives), and professors and teachers of Payam Noor University in Ilam.In this study, 20 variables effective on the creation and development in the village were identified that after the application of factor analysis , Kaiser Method was used to determine the number of factors. According to these criteria, four factors(financial and production inputs, supportive and encouragement, educational and skill, and cultural and social factors) were identified with high-value above 1. These four factors to explain the 0.7531 Percent of the total variance of variables and identified as extractable factors. Regarding the statistical indices, using the main factors analysis method, these four factors were able to explain 7531% of the variance of the total variables.