Determinants of Entrepreneurial Orientation of Rural Women Who Are Members of Microcredit Funds, Case Study: Western Iran

Purpose- Existing literature shows that women, especially rural women, play a prominent role in the development of small and medium-sized businesses; however, few studies have explored factors affecting the perceptions and entrepreneurial tendencies of rural women in developing countries, especially in Iran. The present study was conducted to investigate the determinants of entrepreneurial tendencies of rural women, who are members of microcredit funds, in western Iran (Kermanshah province).Design/methodology/approach- This is an applied study of a correlational-descriptive nature with a quantitative approach that uses a survey method for data collection. The study population consists of all female members of microcredit funds in Kermanshah city (n = ۶۲۶ people). Using Bartlett et al.'s table, ۲۰۱ people were chosen as the research sample using a stratified random sampling method. They were selected by proportional assignment. The main data collection instrument was a questionnaire whose validity and reliability were confirmed using content validity, convergent validity, combined reliability and Cronbach's alpha. Data analysis was conducted using SPSS and Smart PLS software.Findings- According to the results, the latent variables of social capital, recognition of opportunities and entrepreneurial skills had a positive and significant effect on the entrepreneurial tendency of rural women who are members of the microcredit fund; however, the positive and significant effect of entrepreneurial education on the entrepreneurial tendency of rural women was not confirmed. In addition, the findings showed that social capital has a positive and significant effect on entrepreneurial tendency through opportunity recognition.Originality/value- The findings of this research have theoretical and practical implications for the development of entrepreneurship among rural women. That is while enriching literature on the subject, it helps policy makers focus on communication and social interactions, strengthen entrepreneurial skills and introduce entrepreneurial opportunities to develop entrepreneurship among rural women.

Keywords:

Entrepreneurial orientation , Entrepreneurial skill , Social capital , business development