Rural Business Research Articles

THE IMPORTANCE OF RURAL TOURISM DEVELOPMENT IN THE SREM DISTRICT

Contemporary rural business trends emphasize tourism’s vital role in holistic rural development, signaling forthcoming transformations. In the 21st century, rural tourism must adapt to evolving domestic and international demands, showcasing diverse aspects of rural life. Success in family farms will hinge on effective branding, market understanding, customer relations, and product quality. Methodologically, this study compares demographic and economic indicators across seven municipalities in the Srem District over three years, post-COVID-19. Findings reveal Srem’s rural tourism product lacks market positioning. To excel domestically, Srem must establish itself as a rural tourism hotspot, leveraging its unique attributes for competitive advantage. This entails integrating diverse offerings into a cohesive market presence, fostering spatial connectivity.

Pemberdayaan Usaha Mikro dan Kecil Untuk Peningkatan Ekonomi Desa Talang Pauh Bengkulu Tengah

Micro and Small Enterprises (MSEs) have an important role in poverty reduction. Although, there are many problems in the process of developing a business. Rural businesses have various limitations. It often based on their mindset regarding conventional business management. Open minded can be a trigger creativity and innovation. Sometimes, external encouragement is needed. MSEs empowering need collaboration of government, collage and other community. Talang Pauh is one of villages in Pondok Kelapa subdistrict of Bengkulu Tengah which has some MSEs with many limitations. The village potential based business development and market orientation according to MSEs competence. The goals of community service were to increase knowledge and insight of MSEs businesses, to motivate community to utilize their resources, to help MSEs businessman in making business plans. The method of community activities service was dialog and counseling. MSEs empowering is needed to strengthening the village economy. The first step is to increase knowledge and insight of MSEs businesses from several aspects: small business management, human resource management, marketing strategy. The second step is empowering. It can do by activities: enabling, empowering and protecting. The success of empowering is determined by participation of various parties.

Sustainable Rural Business Ecosystem of Pineapple Commodity in Peatland and Mangrove Ecosystem with One Village One CEO (OVOC) Program

Sustainable Rural Business Ecosystem of Pineapple Commodity in Peatland and Mangrove Ecosystem with One Village One CEO (OVOC) Program

Penilaian Tingkat Kesehatan Keuangan Badan Usaha Kredit Pedesaan (BUKP) Di Kabupaten Sleman

This research aims to determine the level of financial health of Rural Credit Business Entities (BUKP) in Sleman Regency. As well as to find out what obstacles and barriers exist in Rural Credit Business Entities (BUKP) in Sleman Regency. This research applies descriptive qualitative research methods, where the source of research data comes from the Regional Secretariat of Sleman Regency. Data sources used in this research include primary data and secondary data. Research data includes the results of interviews, observations and document reviews, as well as information from previous researchers which is used as a theoretical reference. The results of this research show efforts to increase the health level of BUKP in 17 sub-districts in Sleman Regency. Through calculations carried out on the aspects of NPL, LDR, RTA, RTE, NIM, BOPO and CAR, results can be found on the level of financial health of Rural Credit Enterprises (BUKP) in 17 sub-districts in Sleman Regency. In particular, for academics who study the criteria for assessing the level of financial health of BUKP, it is hoped that this research can serve as a comparison and at the same time a reference in exploring this problem. The agencies that host research may vary, but the basis and framework of this research can help researchers who wish to conduct similar research to explore various issues related to the criteria for assessing the level of financial health of BUKP.

The influence of social entrepreneurship orientation and competitive advantage on the performance of rural social enterprises

The development gap between urban and rural areas is a concern in many countries, including Indonesia. Currently, the government has introduced rural businesses to overcome this problem. This study aims to analyze the effect of social entrepreneurship on the performance of rural social entrepreneurs and test competitive advantage as a mediator. The population includes village-owned enterprises in Riau Province, Indonesia; the sample was stratified randomly. Village-owned enterprises are distributed based on classification, namely basic, growing, developing, and advanced. Respondents are managers of village-owned enterprises. Each village received five questionnaires, and 399 company managers decided to join the survey. The study employed structural equation modeling partial least squares to prove that competitive advantage influences organizational performance with a p-value of 0.000 < 0.05. Social entrepreneurial orientation influences competitive advantage and company performance with a p-value of 0.000. Competitive advantage is proven to mediate the relationship between social entrepreneurial orientation and performance, with a p-value of 0.000. The research results stress the importance of social entrepreneurship in improving company performance in rural areas. For this reason, the government should provide high-quality social entrepreneurship training.

Financial deepening does cause income growth of rural residents: Insights from the relationship between government and market in China

This paper examines the impacts of government-market relation (measured by the degree of marketization) on the link between financial deepening and income growth of rural residents. Using macro panel data covering a period from 2010 to 2021 across 31 provincial administrative regions in China, we create an interaction variable that captures the interplay between financial deepening and the degree of marketization. Employing a fixed effects model and a dynamic panel regression model, we derive three robust findings from the regression analysis: (1) the higher the degree of marketization, the stronger the promotion effect of financial deepening on the growth of rural residents' income, with a one-year lag effect; (2) the higher the degree of marketization, the stronger the promotion effect of financial deepening on the wage income of rural residents, with a one-year lag effect; (3) the higher marketization fails to create the promotion effects of financial deepening on the net business income and net property income of rural residents. These results suggest that financial deepening aimed at raising rural residents' incomes in provinces, where China's marketization has slowed down, stagnated, or retrogressed, will have difficulty reaching its goals, and that some of the financial and economic problems affecting the growth of rural residents' business and property incomes remain unresolved.

Resilience of rural businesses in times of crisis: Firm survival during the COVID-19 pandemic in Finland

Little is known about the geography of firm survival during COVID-19. We investigated the effect heterogeneity of the pandemic itself and of business support funding by the Finnish government with respect to rural and urban business closures. To do so, we utilised regional data on firm survival, detailed business support funding data and a rural–urban typology for Finland. Results from panel regressions showed that the pandemic had an overall negative impact on businesses in terms of an increased closure rate of about 20–30% during the period 2020q2–2022q4, which was generally higher in urban than rural areas. While the bulk of business support funding from the Finnish government during the pandemic went to urban businesses, COVID-19 funding mitigated the effects of the pandemic on business closures equally across the different rural–urban categories. Counterfactual simulations show that the average closure rate would have been about 10–12% higher during the pandemic if no business support funding schemes would have been implemented.

The relationship between digital orientation, organizational ambidexterity, and growth strategies of rural SMEs in time of crisis

The rapidly changing digital landscape presents a new context highlighting growth strategies and organizational ambidexterity. This research explores the interaction between growth strategies of rural SMEs, digital orientation, and organizational ambidexterity during the COVID-19 pandemic. The survey data comprised 204 responses from Finnish SME owner-managers in the rural region of South Ostrobothnia in October 2021. The results from the ordinal regression analysis demonstrate that organizational ambidexterity positively influences the utilization of all growth strategies, serving as a mediator in the relationship between digital orientation and these strategies. Digital orientation is positively associated with applying a product/service development strategy, market development strategy, diversification, and business model development but not with market penetration strategy. These findings suggest that a digital orientation enables SMEs to strike a balance between exploration and exploitation, allowing them to effectively pursue both. Furthermore, digitalization offers rural businesses opportunities to implement more demanding growth strategies. Therefore, to ensure the long-term vitality of rural areas, society and policymakers must collaborate in providing robust digital infrastructure.

How does digital transformation affect the profitability of rural commercial banks?

Under the impact of the business sinking of large commercial banks and the cross-border competition of fintech companies, digital transformation has become a strategic priority for rural commercial banks. However, can digital transformation improve the profitability of rural commercial banks (PORCB)? This aspect has not been thoroughly examined in academic literature. This study utilizes unbalanced panel data from 54 Chinese rural commercial banks spanning from 2010 to 2021. The Peking University Commercial Bank Digital Transformation Index is employed to gauge the extent of digital transformation, while ordinary least squares estimation is used to examine its effect on the profitability of rural commercial banks and elucidate its underlying mechanisms. The findings show that: (1) Digital transformation can significantly improve the PORCB. (2) Digital transformation improves the PORCB by enhancing asset quality, operating efficiency and risk-taking. (3) The profitability-enhancing effect of digital transformation is more pronounced among rural commercial business banks with larger assets and lower equity concentration, as well as among state-owned rural commercial banks. This paper's findings represent a novel investigation into the correlation between digital transformation and the profitability of rural commercial banks. They offer a theoretical foundation and empirical evidence for future studies examining the economic implications of bank digital transformation, and offer valuable insights for enhancing the digitalisation of rural banks.

Innovation and rural context: An exploratory case study of a small rural enterprise from the Czech Republic

This study identifies i) factors that encourage small rural enterprises to innovate and ii) obstacles to introducing innovation. Using a case study of a rural business in the Czech Republic, the paper reveals that although rural businesses may experience innovation barriers, such as inadequate human resources and volatile market conditions, they can innovate, respond quickly and effectively to emerging market circumstances and turn threats into opportunities for growth. Importantly, many of the challenges and opportunities for innovation interplay with each other, with some obstacles becoming a foundation of creative and innovative solutions that help to develop a sustainable, modern and efficient enterprise. We highlight that the innovation of rural enterprises can be an outcome of pull and push factors that influence both product innovation and business innovation processes. Pull factors represent incentives and opportunities to stimulate rural innovation. Push factors, on the other hand, necessitate change and create pressures that must be addressed to ensure business longevity. The paper also shows that successful innovation is not free from agency, with the strategic vision and innovation outlook of business owners being a significant driver of innovation practices. Finally, our study shows that the innovation of rural enterprises depends on local, regional, national and international connections, and goes beyond rural areas, with a ‘think local and act global’ approach helping to harness opportunities in wider markets.

Personal relationships of rural small businesses with community banks in times of crisis

PurposeAs many businesses faced economic disruption due to the Covid-19 pandemic and sought financial relief, existing bank relationships became critical to getting a loan. This study examines factors associated with the development of personal relationships of rural small businesses with community bank representatives.Design/methodology/approachWe applied a mixed-method approach. We employed descriptive statistics, principal factor analysis and logistic regression for data analysis. We distributed an online survey to rural small businesses in five states in the United States. Key informant interviews with community bank representatives supplemented the survey results.FindingsA business owner’s trust in a banker was positively associated with the establishment of a business–bank relationship. However, an analysis of individual trust’s components revealed that the nature of trust is complex, and a failure of one or more components may lead to decreased trustworthiness in a banker. Small businesses that preferred personal communication with a bank were more inclined to relationship banking.Research limitations/implicationsDue to the relatively small sample size and cross-sectional data, our results may not be conclusive but should be viewed as preliminary and as suggestions for future research. Bankers should be aware of the importance of trust for small business owners and of the actions that lead to increased trustworthiness.Originality/valueThe study extends the existing knowledge on the business–bank relationship by focusing mainly on social (instead of economic) factors associated with the establishment of the business–bank relationship in times of crisis and high uncertainty.

An Ecosystem Approach to Balanced Territorial Development

Relevance. The problems of sustainable development of rural areas are extremely relevant nowadays, especially in the context of deepening localization and the increasing role of territorial and natural resources. research objective. The purpose of the article is to develop theoretical and methodological aspects of sustainable development of territories, encompassing rural areas with small urban settlements, based on the ecosystem approach to form a unified multi-level strategy for the development thereof. Method and data. The paper substantiates an application of the ecosystem approach to the development of rural areas in increasing the efficiency of rural businesses, budgetary spending through prioritization of state support recipients, stimulating sustainable development of enterprises and the industry, and increasing the consistency of regional economic policy. The conceptual foundations of this approach are presented, and an algorithm to select participants in a rural ecosystem is proposed. results. The proposed approach allows operationalizing self-organization processes in an ecosystem, ensuring a balance of interaction processes of its participants. The research results have contributed to solving the problem of territorial socio-economic ecosystem formation by proposing an algorithm to select target indicators for achieving sustainable development goals, taking into account the specifics and development trends of territories. Conclusions. The conclusions arising from the conducted research provide scientists, government bodies with the necessary information for a better understanding of practical mechanisms to provide balanced territorial development, ensure the move from fragmentary unsystematic measures of state support to effective differentiated and targeted regional policy of rural areas.

Empowering local communities engagement: Rural tourism and business innovation for SDGs desa

Purpose: This study investigates the role of social entrepreneurship and business innovation in empowering local communities for rural tourism development within the framework of sustainable development goals (SDGs). Research methodology: A comprehensive review of the existing literature on social entrepreneurship, business innovation, and rural tourism development is conducted. The study also involved qualitative interviews with key stakeholders and community members in the selected villages, followed by thematic analysis of the data. Results: The findings reveal that Social entrepreneurship plays a crucial role in fostering community engagement, promoting social inclusivity, and creating sustainable tourism initiatives. On the other hand, business innovation enables local communities to differentiate themselves, enhance visitor experiences, and improve the overall competitiveness of rural tourism destinations. Limitations: This study acknowledges certain limitations, including the selection of a limited number of case study villages and potential bias in qualitative interviews. Further research is needed to explore the generalizability of the findings across different contexts. Contribution: This study contributes to the understanding of the synergistic relationship among social entrepreneurship, business innovation, and rural tourism development. These findings provide insights for policymakers, community leaders, and practitioners in designing effective strategies to empower local communities and promote sustainable tourism within the SDGs Desa framework. Novelty: The novelty of this study lies in its comprehensive examination of the combined influence of social entrepreneurship and business innovation on rural tourism development in the context of sustainable development goals (SDGs Desa). This highlights the potential of these concepts to drive positive change and create inclusive and resilient rural tourism destinations.

Empowering local communities engagement: Rural tourism and business innovation for SDGs desa

Purpose: This study investigates the role of social entrepreneurship and business innovation in empowering local communities for rural tourism development within the framework of sustainable development goals (SDGs). Research methodology: A comprehensive review of the existing literature on social entrepreneurship, business innovation, and rural tourism development is conducted. The study also involved qualitative interviews with key stakeholders and community members in the selected villages, followed by thematic analysis of the data. Results: The findings reveal that Social entrepreneurship plays a crucial role in fostering community engagement, promoting social inclusivity, and creating sustainable tourism initiatives. On the other hand, business innovation enables local communities to differentiate themselves, enhance visitor experiences, and improve the overall competitiveness of rural tourism destinations. Limitations: This study acknowledges certain limitations, including the selection of a limited number of case study villages and potential bias in qualitative interviews. Further research is needed to explore the generalizability of the findings across different contexts. Contribution: This study contributes to the understanding of the synergistic relationship among social entrepreneurship, business innovation, and rural tourism development. These findings provide insights for policymakers, community leaders, and practitioners in designing effective strategies to empower local communities and promote sustainable tourism within the SDGs Desa framework. Novelty: The novelty of this study lies in its comprehensive examination of the combined influence of social entrepreneurship and business innovation on rural tourism development in the context of sustainable development goals (SDGs Desa). This highlights the potential of these concepts to drive positive change and create inclusive and resilient rural tourism destinations.

Empowering local communities engagement: Rural tourism and business innovation for SDGs desa

Purpose: This study investigates the role of social entrepreneurship and business innovation in empowering local communities for rural tourism development within the framework of sustainable development goals (SDGs). Research methodology: A comprehensive review of the existing literature on social entrepreneurship, business innovation, and rural tourism development is conducted. The study also involved qualitative interviews with key stakeholders and community members in the selected villages, followed by thematic analysis of the data. Results: The findings reveal that Social entrepreneurship plays a crucial role in fostering community engagement, promoting social inclusivity, and creating sustainable tourism initiatives. On the other hand, business innovation enables local communities to differentiate themselves, enhance visitor experiences, and improve the overall competitiveness of rural tourism destinations. Limitations: This study acknowledges certain limitations, including the selection of a limited number of case study villages and potential bias in qualitative interviews. Further research is needed to explore the generalizability of the findings across different contexts. Contribution: This study contributes to the understanding of the synergistic relationship among social entrepreneurship, business innovation, and rural tourism development. These findings provide insights for policymakers, community leaders, and practitioners in designing effective strategies to empower local communities and promote sustainable tourism within the SDGs Desa framework. Novelty: The novelty of this study lies in its comprehensive examination of the combined influence of social entrepreneurship and business innovation on rural tourism development in the context of sustainable development goals (SDGs Desa). This highlights the potential of these concepts to drive positive change and create inclusive and resilient rural tourism destinations.

The Production Efficiency of Small Medium Enterprises in West Sumatera Province

The purpose of this study is to determine the effect of capital, labor, and resources on the technical efficiency production of SMEs in West Sumatra and to see whether the SMEs production in West Sumatra is technically efficient. The type of data used in this study is panel data for 19 regencies/cities in West Sumatra from 2015 to 2021 using the Stochastic Frontier Analysis (SFA) approach. This research examines production efficiency technically at SMEs in the West Sumatra region. The result of this study indicates that the production factors of capital and resources have a positive and significant effect on the production of SMEs in West Sumatra, while labor has a negative and insignificant effect on the production of SMEs in West Sumatra. The result of the technical efficiency calculation shows that the mean level of technical efficiency of the SMEs production in West Sumatra from 2015 to 2021 is 0.543 or 54.3 percent, which means that production in SMEs is technically inefficient. This research implies that the government can compile regulations and road maps that can increase the productivity of SMEs in the West Sumatra region, and for SMEs to be able to engage more broadly with sustainable programs for production efficiency such as attending training and business guidance, using the rural business credit program from the government, as well as establishing cooperation partners for raw materials with other SMEs.

Rural Business Environments, Information Channels, and Farmers’ Pesticide Utilization Behavior: A Grounded Theory Analysis in Hainan Province, China

Rural business environments and informational sources play a pivotal role in shaping the dynamics of pesticide utilization in the agricultural sector. This study investigates the intricate mechanisms through which these environments impact farmers’ pesticide utilization practices and elucidates the key factors within rural business environments and information channels that influence such behaviors. By identifying effective strategies to promote judicious pesticide use among agricultural practitioners, this research aims to enhance the government’s ability to provide precise guidance to farmers, ultimately contributing to the preservation of ecological integrity. Employing grounded theory in conjunction with a series of comprehensive interviews with 32 cowpea farmers to gain firsthand insights, our investigation yielded the following key findings: (1) the enhancement of rural business environments has mitigated the impact of neighborhood influences on farmers’ pesticide use behavior; (2) farmers predominantly base their pesticide choices on verifiable information; (3) the influence of pesticide retailers on farmers’ pesticide use has significantly increased. Based on these findings, a dual-pronged approach is proposed. First, there should be sustained commitment to bolstering rural infrastructure, enhancing the entrepreneurial climate in rural regions, and fostering market liberalization. Second, it is imperative to disseminate advanced pesticide knowledge, demarcate effective information, and intensify dissemination efforts.

Sustainability and efficiency of rural accommodation business: an approach in the main tourist region of southern Europe

PurposeThe objective of this study is to determine the efficiency of tourist accommodation companies located in the main tourist area of southern Europe as one of the three elements of the local sustainable development triangle.Design/methodology/approachThe analysis, carried out using the data envelopment analysis (DEA) methodology on 130 companies, has obtained that from the CCR perspective (results-oriented method when companies present constant returns on the input variables).FindingsThe companies involved are quite inefficient, while which from the BCC perspective (where the input and output variables used in the company respond to a variable and not constant scale) are quite efficient. The efficiency of these companies in the seven provinces of Andalusia has also been analysed to determine if there are patterns that differentiate them and thus be able to propose strategies that improve the sustainability of these territories. The conclusions of the study indicate the need to improve the operational efficiency of rural accommodation companies.Originality/valueThe analysis of efficiency in the hotel sector and even more so in the rural tourism sector is relatively scarce in the literature, especially in Spain. More specifically, Rubio and Román (2006) have demonstrated the existence of scale inefficiencies in hotels, but no evidence has been found in previous studies that this behaviour carries over to accommodation establishments located in the destinations under study.

Strengthening the Resilience and Perseverance of Rural Accommodation Enterprises in the Iberian Depopulated Areas through Enterprise Architecture

The research objective of this work is to develop and evaluate an enterprise architecture for rural accommodation in the Iberian Peninsula that responds to the demand of the remote labor market. Through an extensive literature review and the application of ArchiMate modeling, this study focuses on providing an enterprise architecture that promotes business resilience and environmental sustainability and boosts the local economy. The proposed enterprise architecture is remotely evaluated by experts, highlighting potential benefits, challenges, and areas for improvement. The results show that the proposed enterprise architecture has the potential to improve the long-term success of rural lodging businesses, enhance the customer experience, promote sustainability, and contribute to economic growth in rural areas through value exchange among stakeholders. The ArchiMate model provides a holistic perspective on stakeholder interactions and interoperability across all functional business areas: Customer Service, Product Management, Omnichannel Commerce, Human Resources, Business Strategy, Marketing, and Sustainability Management. The idea is to empower rural lodging businesses to create a better customer experience, achieve energy and environmental efficiency, contribute to local development, respond quickly to regulatory changes and compliance, and develop new revenue streams. The main goal is to improve offers, mitigate seasonal effects, and reverse the continuous cycle of decline in areas with low population density. Therefore, this ArchiMate modeling can be the initial basis for the digitization or expansion of the rural lodging industry in other geographies.

The Evolution Path and Impact Mechanism of the Vulnerability of Rural Human Settlements in China under the Background of Globalization

Development in the rural environment is a key pillar motivating international organizations' functions and operations. The development in this area falls under the 2030 Agenda of Sustainable Development of the UN. Rural development and factors such as culture might be utilized to achieve such agenda and improve populations living in conditions. The current study was literature systemic reviewing the evolution path and the impact mechanism on the issue of rural human settlement. Results in the current study showed that natural ecosystems, socioeconomic systems, facilities, and service systems all follow one of seven general evolution paths. Terrain and ecology, climate change and catastrophe, the agricultural and rural economy, population increase, and other factors all contribute to disruption. Policy, technology, and the habits of individual households inform the development of action plans. Every evolutionary outcome has both fragile and hardy features. The government and individual families took measures to lower vulnerability and increase resilience by concentrating on the actual problem of the rural human settlements system. Further, the study observed that the effects of rural human settlements on rural development occur in a systematic way. These changes, most obviously seen in the form of new and improved rural human settlement projects, have the potential to affect many facets of the human settlement system as a whole, making it cleaner, more practical, more harmonic, and generally more pleasant places to live. These benefits will have a multiplicative impact on the health, wealth, and happiness of rural residents; the efficiency, modernity, and prosperity of rural businesses; and the quality of life in rural areas.