Identifying the Challenges of Growth and Development of Rural Entrepreneurship in the Villages of Hamadan Province

Villages in Iran are susceptible to water scarcity, drought, agricultural deterioration, and ultimately, dispersal and depopulation. In the interim, rural entrepreneurship may contribute significantly to rural unemployment reduction and economic expansion. The purpose of this article is to examine rural entrepreneurship in the villages of the province of Hamedan in order to illustrate the obstacles entrepreneurs face in their efforts to expand and develop small and medium-sized enterprises. Eighteen entrepreneurs were interviewed in four localities of the province for this purpose.The necessary data and qualitative study methodology were acquired via comprehensive interviews conducted with entrepreneurs. Coding of the data was performed with MAXQDA software.Drawing from the outcomes of multiple coding stages and structural and macroeconomic challenges and obstacles associated with the nation’s macroeconomy, the most significant impediments to the growth of the examined enterprises can be classified into five overarching concepts and categories. These encompass “needs-based entrepreneurship”, “incomplete branding”, “progress with double work”, “limited networking” together with “family-oriented.”The results indicate that in the society under study, rural entrepreneurship is established in response to necessity rather than opportunity. Entrepreneurs who established a company to fulfill necessities such as employment and financial security. These enterprises are exclusively owned and operated by the entrepreneur’s family, with the majority of personnel not being affiliated with the enterprise. Furthermore, these enterprises are conventionally managed,devoid of any innovative or creative practices that could enhance output and productivity