Analysis of the factors affecting
probable failure of local
entrepreneurs
Forecasting approach of greenhouses in rural
areas of Jiroft, Iran
Hamdollah Sojasi Qeidari
Department of Geography, Ferdowsi University of Mashhad, Mashhad, Iran
Mahdi Salehi
Department of Accounting, Ferdowsi University of Mashhad, Mashhad, Iran, and
Hamid Shayan, Seyed Reza Hosseini Kahnooj and
Tahereh Sadeghloo
Department of Geography, Faculty of Letters and Humanities,
Ferdowsi University of Mashhad, Mashhad, Iran
Abstract
Purpose – This study aims to investigate and analyze the factors affecting the probable failure of rural
entrepreneurs so that the most important factors responsible for failure in the business of small and local
entrepreneurs are identified.
Design/methodology/approach – The present survey was conducted through the descriptive-
analytical method by using a researcher-made questionnaire. The statistical population of the study included
1,641 greenhouse owner entrepreneurs in five rural communities. To clarify the key criteria affecting probable
failure of greenhouse businesses, LISREL 8.8 computer software was used and the effects of selected indices
on the process of probable failure of entrepreneurs were assessed using stepwise regression in the SPSS
computer application environment.
Findings – According to the results, individual and managerial skills factors, deterrent financial and legal
issues, social barriers and infrastructural issues investigated in this study were of the first to the fourth
priorities in clarifying factors affecting probable failure of greenhouse businesses. Considering the intragroup
relations in these factors, it could be said that individual and managerial skills factors and infrastructural
issues had the highest correlation coefficient which could be attributed to individual and management
weaknesses of entrepreneurs in understanding infrastructural issues as the most important parameters to be
considered in starting businesses.
Originality/value – So far, few studies analyzed the failure of rural entrepreneurs and evaluated the
probable factors affecting it. Thus, the present study is among the earliest instances in the field and its results
could be of great benefit to domestic entrepreneurs and similar cases in other countries.
Keywords Jiroft, Local entrepreneurs, Probable failure, Greenhouse businesses, Forecasting
Paper type Research paper
1. Introduction
The impact of entrepreneurship on the socioeconomic development of rural regions is so
transparent that several scholars call this era the age of entrepreneurship (Eschker et al.,
2017). According to modern development theories, entrepreneurship could be viewed from
Factors
affecting
failure of local
entrepreneurs
93
Received 3 March 2018
Revised 9 December 2019
Accepted 10 February 2020
International Journal of Law and
Management
Vol. 62 No. 1, 2020
pp. 93-115
© Emerald Publishing Limited
1754-243X
DOI 10.1108/IJLMA-03-2018-0044
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