Factors Influencing the Development of Rural Entrepreneurship A Case Study of Iran

Entrepreneurship is a process which takes place in a network in the presence of social relations. Vast majority of the studies related to entrepreneurship have been in the form of personality traits of the entrepreneurs and paying attention to social networks and social capital, has been neglected by them. This study investigates the relationship between social capital and rural entrepreneurship and the cases of the study are some villages in the county of Kerman. The research method is library work and field study. After defining the indexes and variables of the study through a questionnaire, the necessary data are gathered. The sampling population is estimated 150 rural enterprises in the county of Kerman. The research findings show that there is a direct and significant relationship between rural entrepreneurship and social capital, entrepreneurship and correlation, entrepreneurship and awareness, entrepreneurship and cooperation. The present research reveals a significant relation between media and the dual variable compound of the demographic factors of entrepreneurship. This significance indicates the importance of media’s role in entrepreneurship. The factor analysis of entrepreneurship showed that the factors that were retained explained 48.59% of the total variance. The result of factor analysis showed that the determinants of entrepreneurship development in rural areas were factors such as: physiological characteristic(18.5%), individual characteristic(13.5%), infrastructural(8.5%) and participatory factors(8%).