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

Authors

  • Tahereh Sadeghloo Assistant Professor of Geography and Rural Planning, Ferdowsi University of Mashhad
  • Hamdolah Sojasi Qeidari Assistant Professor of Geography and Rural Planning, Ferdowsi University of Mashhad
  • Mahdi Salehi Associate Professor of Accounting, Ferdowsi University of Mashhad, Mashhad
  • Amin Faal Jalali Assistant Professor of Geography and Rural Planning, Ferdowsi University of Mashhad

DOI:

https://doi.org/10.25175/jrd/2018/v37/i3/139523

Keywords:

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

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.

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How to Cite

Sadeghloo, T., Qeidari, H. S., Salehi, M., & Jalali, A. F. (2018). Analysis of Risk and Return on Investment of Local Entrepreneurs in Iran. Journal of Rural Development, 37(3), 539–564. https://doi.org/10.25175/jrd/2018/v37/i3/139523

Issue

Volume 37, Issue 3, July-September 2018

Section

Articles
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