An Exploration of the Impact of Empowerment through Micro-Credit Funding Upon Starting Rural Sustainable Businesses

Document Type : Research Paper

Authors

1 Associate Proffesor, Faculty of Natural Resources, University of Tehran, Karaj, Iran

2 PhD Candidate of Rangeland Management, Faculty of Natural Resources, University of Tehran, Karaj, Iran

3 Master of Islamic Education and Economics, Imam Sadegh University, Tehran, Iran

Abstract

One of the important strategies for sustainable rural development is developing self-employment   among villagers. Empowerment facilitates the process of starting up business by villagers and accelerates rural development. This study investigated the impact of empowerment through micro-cresit funding upon establishing sustainable rural business in Kerman province, Ghale Ganj County, Sorkh Ghale rural district. This research is applied in terms of purpose and it is descriptive in terms of data collection. The statistical population includes members of micro-credit funds members, out of which 518 persons were chosen as research sample through simple random sampling and based on Daniel formula. Research methodology was structural equation modeling and data was analysed applying Liserel8.8 and SPSS25. The research tool is questionnaire which its validity was corrected and confirmed by experts and experts and its reliability was confirmed by Cronbach's alpha coefficient in the empowerment dimension (α = 0.75) and in the business perspective part (α = 0.92) which indicates the high capability for gathering information. Data was analysed applying Liserel8.8 and SPSS25. Findings showed that the dimensions of empowerment have a positive and significant effect, t= 8.64 on inclination to start business with a path coefficient of 0.72. The results showed empowerment dimensions have a positive and direct impact on businesses. In other hand, starting businesses makes a major part of job creation policies and can solve unemployment problems in of local communities. 

Keywords

References

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Iranian Journal of Agricultural Economics and Development Research
Volume 52, Issue 2
May 2021
Pages 355-370

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