Investigating Role of Rural Small Industrial Enterprises (RSIE) in Economic development of Rural Areas In Khoy Township: West Azarbaijan Province

ABSTRACT:The theories of sustainable rural development and related successful and informative experiences and performances indicate the importance of concentration on nonfarm activities. One of the most influential and apparent examples of this approach is the role of rural small industrial enterprises (RSIE) and small-scale industries. The governments encourage the investment in these activities through institutional, functional and supportive policies that will lead to changes in socio-economic conditions of people in rural areas. There is a direct reference to industrial development and rural industries in paragraph 1-35 of general policies of the fifth national development plan. The rural development planners and policy-makers have addressed this in different parts of this plan and particularly in article 194.The present study explains the role and potentials of RSIE in the environmental, economic and human empowerment of rural areas in Khoy township from the point of view of the owners of these units. It is an applied survey research with a descriptive-correlation statistical design and data is collected by an interviewer-administrated questionnaire besides to document method and field operations. The statistical sample size consists of 67 active RSIE in Khoy township from 80 with an exploitation permit. The productive activities of the enterprises are defined formally by their establishment in rural areas and the number of employment they define in country authorities. The data is processed by SPSS and descriptive and inferential statistics are employed to analyze it.The results indicate that majority of managers and owners of RSIEs belong to the age range of 51-60. The majority of them have more than three years of experience. Around 75% of the owners have second occupation in agricultural activities. An RSIE employs 10 people on average and 62.2% are rural people, while 52% have not benefited from technical, professional and extension trainings. The raw materials of 66.1% are provided from agricultural sub sector (livestock, horticulture and farming). 69.4% of RSIEs have less than 15 kilometers distance from the Khoy county. 50% of the RSIEs employees are covered by social security and retirement plans. In addition, the results indicate significant relationships between the development of RSIEs and the level of employment, increase in income and production, improvement in the life standard and economic development of rural areas at 99%.