Risks and factors contributing towards rural entrepreneurial orientation growth of business in an emerging economy

Abstract

This paper examines risks and critical factors contributing to the rural entrepreneurial orientation growth of businesses. The concept of entrepreneurial orientation and various factors influencing the rural entrepreneurial orientation growth are still not well known. The study aimed to assess risks and critical factors affecting rural entrepreneurial orientation growth of businesses. Questionnaire was developed and used to collect primary data from 127 rural entrepreneurs. The sample was made with small and medium entrepreneurs operating in rural places. They were selected using quota sampling, with respondents completing a questionnaire with the assistance of an interviewer. The study used quantitative technique for data collection. SPSS (23.0) version was used for data analysis and scientific statistical significance level found to be (.000*) at the Cronbach’s alpha (.791*) reliability. Results of the survey reveal that majority indicates competition as a big challenge for them. Findings further indicate that competitor is due to the small market and lack of products differentiation. This study introduces an additional literature in the field of entrepreneurship with specific reference to rural entrepreneurship. The paper will benefit rural entrepreneurs, entrepreneurial marketing managers, potential young entrepreneurs, business consultants, policymakers, financial institutions, government agencies and all affiliated stakeholders by introducing a new understanding of risks and various critical factors causative into rural entrepreneurial orientation growth of business in an emerging economy. Most work on the entrepreneurship development has concentrated in the urban areas with little emphasis on the rural places. The findings of this study limited by study’s exploratory, small sample and quantitative nature. Therefore, generalisation of results should be done with care and further research is encouraged and should aim at the development of technical skills that will empower and encourage entrepreneurial orientation growth culture among rural and young entrepreneurship in the developing and emerging economies countries.

Virtual Business Incubators: A Support for Entrepreneurship in Rural Areas?

“…More recent terminological approaches to rurality reflect changing perceptions of rural regions stemming from declining dependence on traditional agriculture and forestry, acknowledging the economic transformation to multi-sectoral activities (Galvão et al, 2020;Pato & Teixeira, 2016). Rural areas nevertheless continue to be characterized by fewer and less-connected resource endowments in terms of infrastructure, financial capital and human capital, stemming from and resulting in increased resource deprivation (Lavesson, 2018;Lekhanya & Visser, 2016). Rurality is also often associated with a high degree of remoteness and, therefore, a low level of market access (Sternberg, 2009).…”

Understanding the rural entrepreneurship process: a systematic review of literature

“…Research about access to financing in developing economies such as Iran (Sadeghloo et al, 2017) and South Africa (Lekhanya and Visser, 2016) has detected considerable difficulties to receive and repay loans among rural entrepreneurs, due to the long and hard bureaucratic administration and the high interest rates. Consequently, many local projects fail in the initial stages of the entrepreneurship process and the companies that survive do so using their own resources and family loans.…”

“…In heavily regulated activities such as bioenergy generation, institutional support is central, specifically in the realisation phase, according to results obtained in Finland (Kokkonen and Ojanen, 2018). In contrast, cases have been documented in which the institutional environment affects the survival and growth of small and medium-sized rural businesses, due to strict requirements of environmental regulation and licensing in South Africa (Lekhanya and Visser, 2016), as well as for the existence of distrust environments between population and government in Iran (Azari et al, 2017).…”