Factors Promoting Rural Entrepreneurship : A Pairwise Ranking Apporach

Paper presented in 

16^th International Entrepreneurship Forum (IEF) Conference

14-16 September, 2017 | Kathmandu, Nepal

Conference Theme:  Sustainable Entrepreneurship
and Economic Development

Abstract

Entrepreneurship plays a vital role in poverty reduction in rural communities. It also strengthens urban-rural linkages for economic and social development. The government of Nepal and several development partners have therefore focused on entrepreneurial development a strategy of poverty reduction. Intensive studies have been conducted on determinants factors that contribute entrepreneurship development. However, based on our knowledge, none of the studied has attempted to rank the factors from most important to least important in terms of their importance on entrepreneurship development. This study aims to rank the determinant factors in order of their importance by using pairwise ranking approach. The study is based on the primary data collected by Good Neighbors International Nepal. Qualitative research methodology, Focus Group Discussion (FGD) conducted in four districts of Nepal, two from Terai region and two from Mid-hill region. Different geographic region were selected to compares people's perception of those factors in different geophysical setting having a different level of the business environment.

Pre-identified nine factors i.e., physical infrastructure development, access to credit, availability of raw material,  access to the market, government policy, personal factor, family factor, knowledge & skill, and cultural factor are compared by using a pairwise ranking matrix in FGD.  Altogether 20 FGDs were conducted,  five in each district. Data were analyzed by using Analytical Hierchary Process. The experiments indicated that individual factor, family factor, and knowledge and skill are the top first, second and third priority of community people for rural entrepreneurship development. Following top three, access to credit; market access and physical infrastructure development are perceived as fourth, fifth and sixth positions. Cultural factors, availability of raw material and government support appeared in last three positions in the rank. No significant differences observed in the perception of research questions among the people living in Terai and Mid-hill region of Nepal. The finding reveals that there is a gap between policy and community priority for entrepreneurship development in Nepal. Most of the interventions of the Government and NGOs includes support for market, credit and technology services, technical skill development training. The study recommends that first priority shall be given to enhancing entrepreneurship attitude through entrepreneurship development training package, business literacy training and business coaching and counseling.

Keywords: Rural entrepreneurship, Contributing factor, Pairwise ranking,  Nepal

 Author : Ganesh K. Dhakal, Shiva Shanker Sharma and Dr. Gopal Bhatta