Analysis of Inhibiting Factors in Tendency to Rural Youths to Self-Employment Case study: Rural Areas of Hamedan City

Document Type : Research Paper


1 Ph.D. Candidate in Agricultural Development, Faculty of Agriculture, Tabriz University

2 M.Sc. in Rural Development, Faculty of Agriculture, Razi University

3 Assistant Prof., Faculty of Agriculture, Bu-Ali Sina University, Hamedan


Extended Abstract
Today, traditional activities in rural areas are not effective to creating new job
opportunities, so governments need to new strategies for creating employment in
rural areas. Developing entrepreneurship and self- employment in rural areas is an
important strategy for improving job opportunities in this area. In recent years, a
special attention is paid to entrepreneurship and entrepreneur in different countries
and most scholars believe that entrepreneurship and entrepreneurs have a
considerable role in economic growth and development especially in developing
countries (Rahmati & et al, 2010). Entrepreneurship plays also an important role in
social development of different societies. From the economic viewpoint,
entrepreneurship referred to the production factors that assists the economic growth
through discovering and creating new opportunities and from social viewpoint,
contributes the improvement of social situations through increasing job or
employment chances (Mohapatra & et al, 2007). In rural area, entrepreneurship
considered as a complimentary section in economy and job-creating activities due to
response or react to the stagnancy and problems available in agricultural sector and
also as a survival strategy for rural families (Petrin, 1994, Smits, 2004). Therefore, 
the development of entrepreneurship in rural area can act as a crucial force for the
development of this area. In general, entrepreneurship is a powerful tool for
identifying opportunities, acquiring benefits, and removing such problems as
unemployment, the lack of dynamic human resources, low efficiency, quality
reduction of products and services, and economic stagnancy (Maclin & Richard,
2004). Thus creating employment in rural area through entrepreneurship and selfemployment
should be planned as a strategic policy by the planners and policy
makers. Accordingly, this study was an attempt to investigate the inhibiting factors
in tendency to rural youths to self-employment.
Present study aimed at to investigate the inhibiting factors in tendency to rural
youths to self-employment through using a surveying methodology. In this method
by sampling and studying selected samples from the target community, the
distribution, frequencies and the relationship between variables have been studied.
In this regard, the most common method for data collection is questionnaire. The
accuracy of indices and variables in the questionnaire or face validity has been
confirmed by a group of experts. In order to determine the reliability of the
questionnaire, a pre-test process was used through filling the questionnaires by 25
rural youth and a Cronbach's Alpha test was used through SPSS software and it was
85% which shows an acceptable rate. The statistical population of this study was
rural youth of the county. The samples were 184 that were calculated by the
Cochran formula and the data was chosen through the Cluster sampling. In this
research both descriptive and analytic methods were used. In descriptive part, to
describe the variables, such statistics as frequency, percentage, standard deviation,
and mean were used. In analysis section, factor analysis was used to access
inhibiting factors in tendency to rural youths to self-employment.
As mentioned later, a factor analysis method was used in order to classify factors
inhibiting the self-employment among rural youth. To determine whether or not the 
variables are usable for factor analysis, Kaiser-Meyer-Olkin (KMO) and Bartlett’s
tests is usually used. In this study, the Kaiser-Meyer-Olkin value (KMO=0.731)
indicated an adequate sampling for the factor analysis and the result of Bartlett’s test
of Sphericity was significant (p<0.1). In the first round of the factor analysis, six
factors were extracted. These extracted factors had the highest amount of overlap (in
terms of calculated variance). This means these factors can explain more than
54.84% of the total discrepancy among the variables. The first category of the
factors was labeled as infrastructural factor. This factor has the greatest effect and
importance in expressing variables and in general, accounts for 10.60 Percent of
total variance of variables. Educational factor was expressing 9.74 Percent of total
variance of variables. The third factor was the personality factor that explained 9.05
Percent of total variance of variables. The fourth factor was the economic factor that
explained 8.61 Percent of total variance of variables. The fifth factor was the
supportive factor that explained 8.52 Percent of total variance of variables and the
sixth factor was the cultural factor.
Unemployment in rural area has become as one of the basic challenges and this
problem has engaged the policymakers and all stakeholders' organizations in order
to find proper solutions in this regard. In this regard, entrepreneurship is considered
as one of the most important solutions that can be as an appropriate attempt to create
new employments and therefore this troubleshoot must be as the highest priority in
the governmental policies. In this study, the impeding factors self-employment
among rural youth was analyzed. The results of this analysis showed that, six factors
include infrastructure, educational, personality, economic, supportive and cultural
factors were identified as the most inhibiting factors the development of selfemployment
among rural youth. Thus, it is recommended that easy access to credits,
granting low-interest loans to the rural youth are of priority in government policies
in order to accelerate and develop entrepreneurship in rural area.