The barriers hindering the application of the value chain in the context of rural entrepreneurship

Abstract

ABSTRACT Purpose: The present descriptive-analytical study aimed to rank the barriers of the application of the value chain in the context of rural entrepreneurship. Design/methodology/approach: The statistical population was composed of 125 entrepreneurs from the provinces of Tehran, Hamedan, and Golestan, Iran. Data were analyzed by the TOPSIS technique. Findings: The results suggest that the lack of a correct financing mechanism and the lack of targeted policymaking and government support of the rural entrepreneurship are the main factors hindering the cycle of the value chain to develop rural entrepreneurship. The entrepreneurs who work in the service sector identified the lack of training of entrepreneurial skills as the main barrier and in contrast, those working in the animal farming sector listed the lack of government support policies as the main barrier. According to the entrepreneurs working in the agricultural sector, the lack of specialized advisors about job issues and the lack of financial resources are the main deterrents of rural entrepreneurship. Practical implications: Different organizations (such as Jihad-e Agriculture Organization, banks, and the Office of Industry, Mine and Trade) cooperate to facilitate the access of agricultural entrepreneurs to low-interest bank loans and credits that have long enough repayment periods. Theoretical implications: Training institutions, such as academia and private educational institutions, focus on the training of entrepreneurial skills and concepts in different aspects such as business running, marketing, and the recognition of risks and target markets at the elementary and advanced levels. Originality/value: The paper provides insight for rural entrepreneurs to recognize the barriers to the application of the value chain in the establishment of entrepreneurial businesses.