Appraisal of An Opportunity-Based model for Rural Entrepreneurial Process

Research on the rural entrepreneurial process is relatively limited. This quantitative study appraised an opportunity-based model of rural entrepreneurial process that consisted of two components including the principal stages and the important factors in each stage. Using tree analysis, the pathways passed by the rural entrepreneurs and the drivers of the process were investigated. A survey was conducted with a sample of 193 rural entrepreneurs supported by Omid Entrepreneurship Fund, Iran. Based on the results, the rural entrepreneurs passed 7 pathways to get from opportunity recognition to opportunity exploitation. Process of analyzing the regression tree indicated that the rural entrepreneurial process resulted from a complex set of various stages and drivers. The first determinant stage of the predicted value of opportunity exploitation as the dependent variable was opportunity evaluation. All rural entrepreneurs were divided into two categories of low and high opportunity evaluation. The most important drivers of this stage were prior knowledge, access to expertise, and access to financial resources. According to the results, social supports, proactiveness, and expectancy for success were the most effective drivers of the rural entrepreneurial process in which opportunity revision was the most determinant stage. Opportunity examination was another determinant stage influenced by normative environment and self-efficacy. Innovativeness and social networks were the best drivers for the rural entrepreneurs who passed the rural entrepreneurial process with high ability of opportunity recognition. According to the results, both individual and contextual factors were important, in almost all pathways. To facilitate and accelerate the rural entrepreneurial process and promote its quality, it is important to consider the rural entrepreneurs’ abilities.