a framework to support entrepreneurial development in rural

More documents

Recommendations

Info

initiate various projects emphasizing development of businesses and rural communities. Thisleads to the next proposition. Proposition #4: The extent to which entrepreneurs have access topartnerships, the more likely they are to discover opportunities in rural regions.Cooperative Rural Development CentersRural entrepreneurial development requires improvement of support structures (Petrin &Gannon, 1997) to provide business counseling, assistance, a healthy entrepreneurialenvironment, and the establishment of an entrepreneurial culture within the community.Cooperative rural development centers mentor and assist in the development of new ventureconcepts; advise on the assessment of new ventures; and provide technical assistance andcounseling for small businesses in rural areas. These centers form a mentoring program withother successful entrepreneurs and provide forums for rural entrepreneurs to work with otherentrepreneurs to explore new opportunities. As entrepreneurs receive advice, knowledge andguidance from the cooperative rural development centers and engage in mentoring programsthrough these centers, the likelihood of recognizing opportunities increase, which leads to thenext proposition. Proposition #5: The extent to which entrepreneurs receive advice, knowledgeand guidance from the cooperative rural development centers is positively related to theirdiscoveries of opportunities in rural regions.THE MEDIATING EFFECT OF THE NATIONAL ENTREPRENEURIALFRAMEWORK CONDITIONSThe availability of financial resources for new firms and the strength of infrastructureswere found to be highly correlated with the level of entrepreneurial activity across countries(Zacharakis et al., 1999). Including these variables allows us to draw implications for otherdeveloping countries as the concepts tend to be applicable across all settings.Availability Of Financial ResourcesPromoting rural entrepreneurship requires financial resources such as funds for loans,investments and technical assistance for micro enterprises (Kulawczuk, 1998). In this paper, theavailability of financial resources specifically refers to low interest government loans, creditcounseling and technical assistance to rural entrepreneurs. Financial support may play a role inobserving opportunities and creating motivation for individuals to exploit opportunities(Zacharakis et al., 1999). Therefore, it is rational to assume that increasing funds for ruralregions enables rural residents to start their businesses. This leads the next proposition.Proposition #6: The greater the extent to which rural entrepreneurs have access to businessfinancing, the more likely they will discover opportunities for new ventures in rural areas.Infrastructure DevelopmentThe strength of infrastructure development plays a crucial role in rural entrepreneurshipdevelopment (FAO documents, 1997). Infrastructure development is highly correlated with thelevel of entrepreneurial activity across different countries (Zacharakis et al., 1999). In this paperinfrastructure development refers to developing and sustaining appropriate infrastructures inrural areas. Previous research found that if there is a specific need in the community, spending on4
infrastructure improvements will be beneficial in encouraging entrepreneurship (Bruinsma,Nijkamp, & Rietwald,1992).The strength of infrastructure in an area affects capacity building capabilities, reducessocio-economic barriers and increases potential and possibilities for the region (Zacharakis et al.,1999). Therefore, spending on infrastructure development in rural regions leads to a change inthe industry structure and creates a new demand and supply curve for new ideas and resources,which in turn impacts the availability of opportunities. This leads to the next proposition.Proposition #7: The extent to which entrepreneurs have access to rural infrastructuredevelopment, the more likely they are to discover opportunities in rural regions.The level of national framework conditions can facilitate the growth of an entrepreneurialsector in a country (Zacharakis et al., 1999). Since basic infrastructure development andavailability of financing (Kulawczuk, 1998) are necessary for any entrepreneurial venture, it isassumed that a country’s rate of the development of the national framework conditions may be acrucial link between a variety of other social, intellectual and environmental dimensions andrural opportunity recognition in a country. As each developing country has a different level ofnational entrepreneurial framework conditions, it is suggested that the impact of intellectual,human, and environmental resources on opportunity recognition is partially mediated by thenational entrepreneurial framework conditions. Hence, Proposition #8 and #9. Proposition #8:The effect of intellectual, human, and environmental resources on opportunity recognition ispartially mediated by the availability of financial resources in a particular country.Proposition # 9:The effect of intellectual, human, and environmental resources on opportunityrecognition is partially mediated by infrastructure development of a particular country.INSIGHTS FOR FUTURE RESEARCH AND SUGGESTIONS FOR POLICY OPTIONSCONDUCIVE FOR RURAL ENTREPRENEURSHIP DEVELOPMENTInitiating rural entrepreneurship is a multidimensional strategy that involves education,training, business/support networks and building strong infrastructures to assist ruralentrepreneurs in identifying rural business opportunities and develop new businesses.Strengthening the rural entrepreneurial system will speed up the establishment of selfsustainedrural communities, increase sources of income, support development of infrastructure,build capacity, revitalize the rural community, and make a significant impact in alleviatingpoverty. Therefore, what is needed is further entrepreneurship research in developing countriesthat help to create policies conducive for rural entrepreneurship development.The ideas presented in this paper are a step towards future entrepreneurship research inrural areas. We propose further empirical investigation of the framework presented in this paper.Overall, opportunity recognition in rural entrepreneurship is a complex issue and requiresentrepreneurship research and the development of policy initiatives.5
Page 1 and 2: A FRAMEWORK TO SUPPORT ENTREPRENEUR
Page 3: development (Malecki, 1997) and tra
Page 7: Kulawczuk, P. (1998). The developme

a framework to support entrepreneurial development in rural

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?