Determinants of Entrepreneurial Activities Development of Rural Women: The Case of Omid Entrepreneurship Fund of Larestan County

Sustainability of small and medium-sized rural businesses` activities are very vital due to the importance and effective role of SMEs as the engine of human and economic development. Rural women have direct effect on these businesses` development as half of the population of rural areas. Therefore, determinants of entrepreneurial activities development of rural women of Larestan County in Fars province were the main purpose of the study.

This descriptive study was accomplished through survey technique using a questionnaire for data collection. The face validity of the questionnaire was confirmed by the professors of the Department of Agricultural Extension and Education and the reliability was approved by conducting a pilot study out of the main sample in some villages of Marvdasht County. The Cronbach`s alphas of the variables were computed between 0.74 and 0.93. The research area was Larestan county in southern Fars province, so the study population was all of the rural women who were the members of Omid Entrepreneurship Fund of Larestan County (440 individuals) and the sample was estimated 108 individuals based on Cochran formula. Final samples of 216 rural women were interviewed due to the stratified random sampling method from two groups of members (111 women) and non-members (105 women) of Omid Entrepreneurship Fund. Two separate causal models were presented for memvers and non-members.

The results of path analysis indicated that entrepreneurial spirit, educational level, entrepreneurship education, skills for business plan writing, governmental supportive policies, business environment, entrepreneurial; orientation and social and organizational networking had direct effects on the entrepreneurial activities development. On the other hand, based on the causal model of non-members group, the three variables of educational level, business environment and social and organizational networking were the effective factors on entrepreneurial activities development of non-members. Indirect effects of the factors through mediator variables have also been seen in the both models.  

Findings showed that the members of Omid Entrepreneurship Fund were better than non-members in terms of individual entrepreneurial characteristics and business`s condition. The causal model of the members is a stronger model and indicates a more diverse affecting factor in the development of rural women entrepreneurial activities compared to the other model of non-members. Some applicable recommendations were provided based on the findings in order to improve the businesses of Larestan county`s rural women. One of the most important recommendations of the study was to pay attention to various entrepreneurial educations, strengthen skills in business plan writing skill and improve the five characteristics of rural women entrepreneurial orientation. The networking of different rural women groups could also be effective on the improvement of business performence. Finally, creating a culture about the role of women in the socio-economic activities of community will also be an important factor in the women's entrepreneurial activities development.