Objective: This study was conducted with the aim of designing an indigenous model for the development of cooperatives with a rural entrepreneurship approach in Kermanshah Province.
Methods: The research adopted a qualitative approach, employing the grounded theory method to extract the model. The target population included managers and experts from the Kermanshah Province Department of Cooperatives, Labor, and Social Welfare, faculty members from Razi University, and entrepreneurs active in rural cooperatives within the province. Theoretical sampling was applied, and theoretical saturation was reached after 12 in-depth interviews. Data analysis followed the three-stage coding process—open, axial, and selective coding.
Results: The three-stage coding process identified the foundations of rural entrepreneurship, entrepreneurial cohesion within rural cooperatives, and individual characteristics of rural cooperative entrepreneurs as causal conditions. Contextual conditions included the diversity of rural entrepreneurial opportunities in the cooperative sector, access to production factors, the province’s strategic location, scientific support from experts and specialists, the foundation of collective entrepreneurship (through rural cooperatives), cultural barriers, and weaknesses in the education system. Intervening conditions encompassed climate change, economic factors, environmental disorder and instability, organizational factors, communication and information dissemination factors, genuine governmental support for cooperatives, and infrastructural factors. Identified strategies included business diversification, revision of spatial planning programs, empowerment of cooperative companies, utilization of international trade opportunities, promotion and cultural awareness, and corrective-supportive strategies. The identified outcomes comprised improved quality of life for rural residents, sustainable rural development, and the presence of entrepreneurial rural cooperatives.
Conclusions: To develop cooperatives with a rural entrepreneurship approach in Kermanshah Province, it is essential to consider all factors that accelerate the development process, alongside providing the specific prerequisites for this field and implementing comprehensive planning. The results of this research strengthen the literature on rural and cooperative-based entrepreneurship and offer practical insights to assist rural managers and planners in promoting cooperative-centered rural entrepreneurship, ultimately contributing to the rural development process.