Journal of Rural Development

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Analysis of Risk and Return on Investment of Local Entrepreneurs in Iran


Affiliations
1 Geography and Rural Planning, Ferdowsi University of Mashhad, Iran, Islamic Republic of
2 Accounting, Ferdowsi University of Mashhad, Mashhad
     

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The purpose of this study is to analyse the risk and return on investment of local entrepreneurs in Iran because investment in any activity is associated with variables such as risk and return. This issue reveals the importance of entrepreneurship in rural areas. Investigating and controlling risk and return on investment in small entrepreneurial activities is one of the issues which improves returns and reduces the investment risk. For this purpose, descriptive-analytic research method is used to collect field data among 5770 entrepreneurial businesses in rural areas of Mashhad in Iran in 2015. The results showed that return on investment of sample entrepreneurs in rural areas is smaller than the average. That’s why, in most cases, entrepreneurs are not willing to use rural environments for investment and they often try to establish businesses in urban environments or around the city because of lower investment risk and easier access to public services, governmental support and sales market.

Keywords

Investment Risk, Return on Investment, Small and Medium-Sized Entrepreneurial Activity, Factor Analysis.
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  • Analysis of Risk and Return on Investment of Local Entrepreneurs in Iran

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Authors

Tahereh Sadeghloo
Geography and Rural Planning, Ferdowsi University of Mashhad, Iran, Islamic Republic of
Hamdolah Sojasi Qeidari
Geography and Rural Planning, Ferdowsi University of Mashhad, Iran, Islamic Republic of
Mahdi Salehi
Accounting, Ferdowsi University of Mashhad, Mashhad
Amin Faal Jalali
Geography and Rural Planning, Ferdowsi University of Mashhad, Iran, Islamic Republic of

Abstract


The purpose of this study is to analyse the risk and return on investment of local entrepreneurs in Iran because investment in any activity is associated with variables such as risk and return. This issue reveals the importance of entrepreneurship in rural areas. Investigating and controlling risk and return on investment in small entrepreneurial activities is one of the issues which improves returns and reduces the investment risk. For this purpose, descriptive-analytic research method is used to collect field data among 5770 entrepreneurial businesses in rural areas of Mashhad in Iran in 2015. The results showed that return on investment of sample entrepreneurs in rural areas is smaller than the average. That’s why, in most cases, entrepreneurs are not willing to use rural environments for investment and they often try to establish businesses in urban environments or around the city because of lower investment risk and easier access to public services, governmental support and sales market.

Keywords


Investment Risk, Return on Investment, Small and Medium-Sized Entrepreneurial Activity, Factor Analysis.

References





DOI: https://doi.org/10.25175/jrd%2F2018%2Fv37%2Fi3%2F139523