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Fatemeh Mozafari, Abdolhamid Nazari, Shahbakhti Rostami, Mostafa Shahinifar,
Volume 11, Issue 41 (12-2022)
Volume 11, Issue 41 (12-2022)
Abstract
Introduction:
One of the current plans of the Iranian government is the "Home Business Organization Plan" to solve the problem of unemployment, which started in 2010. Even though home businesses are generally neglected in the economy, they are essential to creating employment, increasing income, improving the quality of life, reducing poverty, and perpetuating the population in rural areas. Unemployed, low-income or no-income villagers have welcomed the "home business organization plan" in Ilam province due to the following issues: geographical isolation, mountainous nature, distance from industrial and service centers, incompatibility of water and soil resources, lack of facilities for water control and transfer, the predominance of micro-agricultural exploitation units, the low level of mechanization, the severe financial weakness of the private sector, migration and the weakness of the economic foundations of rural society and in general the traditional and livelihood structure of production. In the present study, the issue has been discussed only from the economic viewpoint. Its purpose is to explain the role of economic dimensions of home businesses in the sustainable livelihood of rural households. Therefore, the central question of the present paper is: to what extent has the creation and development of home businesses in terms of job creation and diversification, increasing income and empowering and reducing poverty affected improving the sustainable livelihood of rural households?
Research Methods:
The current research is descriptive-analytical, and its statistical population includes 1476 households receiving loans in-home businesses who live in 287 villages in Ilam province. Considering the number and dispersion of villages, their selection was made by the sampling method. First, the number of villages was limited to 56 using cluster sampling (considering the homogeneity of four factors: altitude, distance from the city center, number of households and loan receivers). Then, the number of sample households was estimated to be 200 according to Cochran's formula and selected by simple random method. Finally, the data was collected using a researcher-made questionnaire after confirming its validity and reliability. After confirming the data's normality through the Kolmogorov-Smirnov test, one-sample t-tests and confirmatory factor analysis were used to evaluate the hypothesis.
Results and Discussion:
The conceptual basis of the current research is based on the strategy of "sustainable livelihood". Sustainable livelihood is not a "theory" but a strategy discussed in the scientific and executive circles of development programs in the framework of "sustainable development theory". This strategy has four environmental, economic, social and institutional dimensions. The first principle of the sustainable livelihood strategy emphasizes "focusing on people" and achieving sustainable development is considered an endogenous and bottom-up motivational movement. Nevertheless, according to the general structure of the organization and planning system of Iran, in which the "government" has a central role in carrying out any plan, and in terms of sustainable livelihood strategy, it is considered an external intervening factor with a top-down orientation, this paradox should be considered more seriously. The results showed that the creation of home businesses from the economic aspect in the job creation indicators, primarily the increase of women's jobs and the diversification of activities, had positive effects, which indicates its alignment with the standards of sustainable household livelihood strategy. Although the plan has been relatively successful in increasing income, it has not been very successful in terms of empowerment, especially poverty alleviation of the lower strata of society. The evaluation of the effectiveness of creating home businesses on the sustainability livelihood by the target community showed that the factors of job creation and diversification of activity with a particular value of 2.743 and variance percentage of 31.509, income generation and empowerment with a special value of 1.192 and the variance percentage of 13.263 and poverty alleviation with the value of 1.043 and the variance percentage of 11.249 are ranked first to third, respectively. In general, the performance of the mentioned plan can be evaluated as successful in creating jobs and diversifying the activities of the studied households. According to the indicators in the area of income increase, there is an unbalanced distribution of resources, income and investment power, which shows the weakness of the economic foundations and the undesired livelihood of the villagers of Ilam Province. In the field of poverty alleviation, the plan has not been very successful. The results of this research are fundamentally different from similar international studies and have some similarities with some similar national studies.
One of the current plans of the Iranian government is the "Home Business Organization Plan" to solve the problem of unemployment, which started in 2010. Even though home businesses are generally neglected in the economy, they are essential to creating employment, increasing income, improving the quality of life, reducing poverty, and perpetuating the population in rural areas. Unemployed, low-income or no-income villagers have welcomed the "home business organization plan" in Ilam province due to the following issues: geographical isolation, mountainous nature, distance from industrial and service centers, incompatibility of water and soil resources, lack of facilities for water control and transfer, the predominance of micro-agricultural exploitation units, the low level of mechanization, the severe financial weakness of the private sector, migration and the weakness of the economic foundations of rural society and in general the traditional and livelihood structure of production. In the present study, the issue has been discussed only from the economic viewpoint. Its purpose is to explain the role of economic dimensions of home businesses in the sustainable livelihood of rural households. Therefore, the central question of the present paper is: to what extent has the creation and development of home businesses in terms of job creation and diversification, increasing income and empowering and reducing poverty affected improving the sustainable livelihood of rural households?
Research Methods:
The current research is descriptive-analytical, and its statistical population includes 1476 households receiving loans in-home businesses who live in 287 villages in Ilam province. Considering the number and dispersion of villages, their selection was made by the sampling method. First, the number of villages was limited to 56 using cluster sampling (considering the homogeneity of four factors: altitude, distance from the city center, number of households and loan receivers). Then, the number of sample households was estimated to be 200 according to Cochran's formula and selected by simple random method. Finally, the data was collected using a researcher-made questionnaire after confirming its validity and reliability. After confirming the data's normality through the Kolmogorov-Smirnov test, one-sample t-tests and confirmatory factor analysis were used to evaluate the hypothesis.
Results and Discussion:
The conceptual basis of the current research is based on the strategy of "sustainable livelihood". Sustainable livelihood is not a "theory" but a strategy discussed in the scientific and executive circles of development programs in the framework of "sustainable development theory". This strategy has four environmental, economic, social and institutional dimensions. The first principle of the sustainable livelihood strategy emphasizes "focusing on people" and achieving sustainable development is considered an endogenous and bottom-up motivational movement. Nevertheless, according to the general structure of the organization and planning system of Iran, in which the "government" has a central role in carrying out any plan, and in terms of sustainable livelihood strategy, it is considered an external intervening factor with a top-down orientation, this paradox should be considered more seriously. The results showed that the creation of home businesses from the economic aspect in the job creation indicators, primarily the increase of women's jobs and the diversification of activities, had positive effects, which indicates its alignment with the standards of sustainable household livelihood strategy. Although the plan has been relatively successful in increasing income, it has not been very successful in terms of empowerment, especially poverty alleviation of the lower strata of society. The evaluation of the effectiveness of creating home businesses on the sustainability livelihood by the target community showed that the factors of job creation and diversification of activity with a particular value of 2.743 and variance percentage of 31.509, income generation and empowerment with a special value of 1.192 and the variance percentage of 13.263 and poverty alleviation with the value of 1.043 and the variance percentage of 11.249 are ranked first to third, respectively. In general, the performance of the mentioned plan can be evaluated as successful in creating jobs and diversifying the activities of the studied households. According to the indicators in the area of income increase, there is an unbalanced distribution of resources, income and investment power, which shows the weakness of the economic foundations and the undesired livelihood of the villagers of Ilam Province. In the field of poverty alleviation, the plan has not been very successful. The results of this research are fundamentally different from similar international studies and have some similarities with some similar national studies.
Khalil Mirzaei, Aazam Skakouri, Marjan Sepahpanah, Fereshteh Avatefiakmal, Masoud Samian,
Volume 12, Issue 43 (4-2023)
Volume 12, Issue 43 (4-2023)
Abstract
Introduction
Entrepreneurship in rural areas can create new job opportunities and increase income, leading to improved economic and living conditions for villagers. As a result, the concept of entrepreneurship has become more closely linked to the development of villages compared to the past. Encouraging rural entrepreneurship can contribute to rural communities' economic growth by recognizing the agricultural sector's strengths and weaknesses. This can be achieved through effective strategic planning, promoting creativity, innovation, and entrepreneurship. Doing so helps prevent a policy of state-centralism, which prioritizes the convenience and obedience of villagers. Several benefits are associated with rural entrepreneurship, including the development of employment opportunities, reduction in rural migrations, increased income, and innovation. Despite these advantages, rural entrepreneurship has not yet flourished in Iran's rural communities, and entrepreneurial activity has not been institutionalized in these areas. Research conducted in various countries, including Iran, has revealed that rural entrepreneurship encounters numerous obstacles. These include limited access to skilled labor in rural regions, low levels of education, knowledge, and technical skills, and inadequate knowledge of information technology in rural areas.
Furthermore, the absence of a supportive family, societal, and support system environment does not foster rural entrepreneurship growth. It does not motivate rural individuals to pursue entrepreneurship as a career. Young and educated people often leave the villages and go to big cities hoping for a better future, more income, and easier life, and this phenomenon of brain drain causes a lack of reincarnation and matching between existing jobs and the workforce's skills. The rest is in the villages. It is important to acknowledge the significance of rural entrepreneurship in disadvantaged communities for implementing sustainable rural development programs and policies. However, there are numerous challenges that must be addressed in order to enhance this field and provide opportunities for employment. Developing strategies that can effectively reduce or eliminate these challenges and problems will help promote a better quality of life and livelihood for those living in rural areas.
Methodology
This research aimed to conduct an applied, analytical, and exploratory study. The necessary data was gathered through both library research and a questionnaire. In the initial phase, an environmental survey was utilized to identify the key factors that impact rural development in Hamedan Province, specifically in relation to entrepreneurship and home-based businesses. Faculty members of the agricultural development training group and rural planning experts confirmed the validity of extracted indicators. The statistical population of this research was ten experts and specialists in rural development and planning. In the next step, the interviewees are asked to declare their agreement or disagreement and their level with each title using a Likert scale. In other words, they are quantifiable. At this stage, the components that get a score lower than the average will be removed from the research, and the remaining components will enter the next stage. In the following, to identify the drivers among the key factors obtained in the previous section, a mutual effects questionnaire was designed and returned to the interviewees, and they were asked to score. The weighting of this questionnaire was measured as a pairwise comparison, and the correlation between the variables was measured between zero and three. MIC MAC software was used for data analysis in this research and this step. Wizard software was also used to develop scenarios.
Discussion and conclusion
The findings revealed that, apart from the current connections between the indicators, there were potential forms of relationships among them. These can be utilized in the planning process. The results show that the factors with the greatest impact on the system are investing enough financial resources in villages, providing women with a legitimate presence in various areas including politics, law, society, culture, economics, and operations, and defining a participatory planning model within the legal framework of Hamadan Province.
Some indicators have a greater impact than others on the state and changes of a system. These critical indicators are considered input variables that the system cannot control. The "Improvement of rural tourism infrastructure" index is a system risk index. It has a very high capacity to become the key player of the system because, due to its unstable nature, they have the potential to become the system's breaking point. The indicators of "Strengthening, creating confidence and raising awareness among villagers to meet their basic needs, such as free education in primary levels, university education, skills, job creation" and "Approval of laws to support rural businesses during severe currency fluctuations" are effective. They rely heavily on the changes in important and dual variables and are easily affected by them. These variables represent the system's output. After analyzing indicators in the Wizard software, two scenarios were identified. The first scenario, "Paying Attention to Local Planning," was one of them. This scenario had high compatibility. The elements of this reported scenario constitute a complete set of mutually supporting assumptions. Also the second scenario was called "sectional planning". According to the results of the research, local planning can be done in each of the villages of Hamadan Province, looking at the capacity and potential of that region for sustainable rural development.
Entrepreneurship in rural areas can create new job opportunities and increase income, leading to improved economic and living conditions for villagers. As a result, the concept of entrepreneurship has become more closely linked to the development of villages compared to the past. Encouraging rural entrepreneurship can contribute to rural communities' economic growth by recognizing the agricultural sector's strengths and weaknesses. This can be achieved through effective strategic planning, promoting creativity, innovation, and entrepreneurship. Doing so helps prevent a policy of state-centralism, which prioritizes the convenience and obedience of villagers. Several benefits are associated with rural entrepreneurship, including the development of employment opportunities, reduction in rural migrations, increased income, and innovation. Despite these advantages, rural entrepreneurship has not yet flourished in Iran's rural communities, and entrepreneurial activity has not been institutionalized in these areas. Research conducted in various countries, including Iran, has revealed that rural entrepreneurship encounters numerous obstacles. These include limited access to skilled labor in rural regions, low levels of education, knowledge, and technical skills, and inadequate knowledge of information technology in rural areas.
Furthermore, the absence of a supportive family, societal, and support system environment does not foster rural entrepreneurship growth. It does not motivate rural individuals to pursue entrepreneurship as a career. Young and educated people often leave the villages and go to big cities hoping for a better future, more income, and easier life, and this phenomenon of brain drain causes a lack of reincarnation and matching between existing jobs and the workforce's skills. The rest is in the villages. It is important to acknowledge the significance of rural entrepreneurship in disadvantaged communities for implementing sustainable rural development programs and policies. However, there are numerous challenges that must be addressed in order to enhance this field and provide opportunities for employment. Developing strategies that can effectively reduce or eliminate these challenges and problems will help promote a better quality of life and livelihood for those living in rural areas.
Methodology
This research aimed to conduct an applied, analytical, and exploratory study. The necessary data was gathered through both library research and a questionnaire. In the initial phase, an environmental survey was utilized to identify the key factors that impact rural development in Hamedan Province, specifically in relation to entrepreneurship and home-based businesses. Faculty members of the agricultural development training group and rural planning experts confirmed the validity of extracted indicators. The statistical population of this research was ten experts and specialists in rural development and planning. In the next step, the interviewees are asked to declare their agreement or disagreement and their level with each title using a Likert scale. In other words, they are quantifiable. At this stage, the components that get a score lower than the average will be removed from the research, and the remaining components will enter the next stage. In the following, to identify the drivers among the key factors obtained in the previous section, a mutual effects questionnaire was designed and returned to the interviewees, and they were asked to score. The weighting of this questionnaire was measured as a pairwise comparison, and the correlation between the variables was measured between zero and three. MIC MAC software was used for data analysis in this research and this step. Wizard software was also used to develop scenarios.
Discussion and conclusion
The findings revealed that, apart from the current connections between the indicators, there were potential forms of relationships among them. These can be utilized in the planning process. The results show that the factors with the greatest impact on the system are investing enough financial resources in villages, providing women with a legitimate presence in various areas including politics, law, society, culture, economics, and operations, and defining a participatory planning model within the legal framework of Hamadan Province.
Some indicators have a greater impact than others on the state and changes of a system. These critical indicators are considered input variables that the system cannot control. The "Improvement of rural tourism infrastructure" index is a system risk index. It has a very high capacity to become the key player of the system because, due to its unstable nature, they have the potential to become the system's breaking point. The indicators of "Strengthening, creating confidence and raising awareness among villagers to meet their basic needs, such as free education in primary levels, university education, skills, job creation" and "Approval of laws to support rural businesses during severe currency fluctuations" are effective. They rely heavily on the changes in important and dual variables and are easily affected by them. These variables represent the system's output. After analyzing indicators in the Wizard software, two scenarios were identified. The first scenario, "Paying Attention to Local Planning," was one of them. This scenario had high compatibility. The elements of this reported scenario constitute a complete set of mutually supporting assumptions. Also the second scenario was called "sectional planning". According to the results of the research, local planning can be done in each of the villages of Hamadan Province, looking at the capacity and potential of that region for sustainable rural development.
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