Investigation of the Factors Influencing the success of Rural Industries in Employment Generation (Case Study: Isfahan Province)

Abstract

Purpose: The shortage of employment opportunities is the main reason of some problems such as low income, under-development and immigration to cities in the rural areas. Along with agricultural sector, non-agricultural sector and, specially, rural industries also have high potential to raise labor employment in such areas. However, there are some factors that restrict to employ all potentials of rural industries for employment generation. This study shows how the rural industries could success to create employment under effects of environmental, structural, individual, economical, technical, social, cultural political and legal factors. Methodology: The conceptual framework of this study was built base on a literature review, statistical data and interview with scholars and expertise. These materials helped us to design and modify a questionnaire which was the main element for data gathering. A systematic random sampling method was used in which a sample size of 90 firms, calculated by Cochran formula, was selected to this propose. Findings: Economically, capital amount, The amount of working capital, early studies, demand for products, places where raw materials are produced, quality and cost of competing products have effect on increasing employment. Research limitation: One of the most important research problems distribution industry professionals surveyed had access to them. Practical implications: Identify factors that influence the success of rural industries to create jobs for new job opportunities and help improve the livelihoods of rural income and balancing urban and rural incomes and thus reduce rural migration can influence. Original/value: For the first time in the country at this level of success in job creation and rural industries have been investigated factors.