The Role of Institutions in Entrepreneurship Development in Line with the General Policies of National Production and Employment

A key requirement for fostering entrepreneurship is addressing the role of institutional factors in local policymaking and governance, which can enhance efficient property rights and support the development of economic enterprises in rural areas. Accordingly, this study aims to identify the institutional variables influencing entrepreneurship in the rural area of Nesa, located in Karaj County. This research is both fundamental and applied in nature, employing a descriptive survey design for data collection. The statistical population consists of residents from the rural area of Nesa in Karaj County, with a sample of 216 individuals selected using Cochran's formula and random sampling. A researcher-designed questionnaire was used as the primary data collection tool. The data were analyzed using confirmatory factor analysis, one-sample t-tests, and Friedman's ranking test. The findings indicate that self-employment, primarily through small family businesses and lacking innovation, is the dominant form of entrepreneurial activity. The overall average of seven institutional factors influencing rural entrepreneurship—namely property rights, reward systems, economic stability, transaction costs, litigation costs, transparency and accountability, and the education and skills training system—was 2.16, below the expected average. Litigation costs recorded the highest average (2.37), followed by transaction costs (2.25), while economic stability had the lowest average (1.94). These findings suggest that the entrepreneurship landscape is suboptimal, necessitating the reorganization of institutional structures to align with national production and employment policies.