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CONTENTS

Research title

Research Purpose and Statement of Problem:

Research background

Objectives of the work

Literature Overview

Statement of the Design and Methodology

Methods Of Data Analysis

Forms of Presentation

Conclusion

Time Chart

References
Research title:
Critical review of arising entrepreneurship in rural areas.

Research Purpose and Statement of Problem:


Research is a way which helps to find things our, to discover problems, even out gaps in the
literature or develop new ideas. It somehow advances knowledge. Research always brings
learning and it entails critical and creative thinking. According to Andrews (2003) the actual
statement of problem should be given out of the carried research and then the questions which
are derived from this statement should be answered. These questions are formed from the context
and are direct response to the situation. The chosen topic aims to get better understanding the
effectiveness of entrepreneurship, the development of this phenomenon in rural areas,
advantages and disadvantages of this process. Besides, goals of the work includes determination
of factors that create better environment for entrepreneurship to prosper in anti-urban areas and
necessity of training people and expansion of knowledge on entrepreneurship of local
inhabitants.

Research background:

This is an entrepreneurial age. According to Bygrave as many as 460 million people in the world
are actively involved in trying to start a new venture or to be owners of small businesses. It is
proven that entrepreneurship led the business trends and usually brings success to the business.
But still in many countries entrepreneurship activity is at its early age and still not well
developed field. Entrepreneurship in micro level, particularly in rural areas is still a subject to
discuss and develop.

Rural area development is still the field which needs individuals and institutions to be focused on
it. Development of rural areas can open new areas for business operations and can create a new
market. Promotion of rural businesses through entrepreneurship can be seen as s strategic
development intervention that could accelerate rural development process. In developing
countries rural areas are still needed to be developed and the quality of life for individuals should
be improved. By linking the entrepreneurship to the rural area development we can see a chain
which relates this two links and help to figure out the interrelationship of both.

The entrepreneurial orientation to rural development can consider entrepreneurship as the central
force of economic growth and development. This work will help to public users and government
official as well as to the staff of non-government organizations engaged in rural development
planning to find new perspectives of this development plan through entrepreneurship.
Furthermore, promotion of entrepreneurship in rural area will help local people set the priorities
for development in their countries and support access to governmental or non-governmental
funding in promoting local economic development.

The trained people of potential entrepreneurs, using their skills in setting up local businesses can
create full and productive employment that will enrich the live standards of rural people.
Launched and grown businesses will make commercial and service sectors in the countryside
more diverse and will establish greater integration between rural and urban areas (Petrin, 1994).
This proposal for future dissertation work will deal with the following objectives: firstly, it will
try to identify reasons why developing entrepreneurship is a force of economic change which
will develop rural standards. Secondly, it deals with what policies are necessary in order to create
an environment in

The objective of this work:

After the study will be done following achievements to be stated:

• The determination of reasons for promoting entrepreneurship in rural areas


• Describe how entrepreneurship can help in development of rural areas
• Calculation of intellectual potential of rural area people in entrepreneurship

General objectives of the study will deal with the reasons of developing entrepreneurship in rural
area in current economical environment, secondly the policies necessary to create relevant
environment rural areas conducive to entrepreneurship; and thirdly, it considers motivation
factors for entrepreneurship

Literature Overview

Entrepreneurship is the act of being an entrepreneur, which is a French word meaning "one who
undertakes an endeavor". Entrepreneurs assemble resources including innovations, finance and
business acumen in an effort to transform innovations into economic goods. This may result in
new organizations or may be part of revitalizing mature organizations in response to a perceived
opportunity. The most obvious form of entrepreneurship is that of starting new businesses;
however, in recent years, the term has been extended to include social and political forms of
entrepreneurial activity. Entrepreneurial activities are substantially different depending on the
type of organization that is being started. Entrepreneurship ranges in scale from solo projects
(even involving the entrepreneur only part-time) to major undertakings creating many job
opportunities. Many "high value" entrepreneurial ventures seek venture capital or angel funding
in order to raise capital to build the business. Angel investors generally seek returns of 20-30%
and more extensive involvement in the business. Many kinds of organizations now exist to
support would-be entrepreneurs, including specialized government agencies, business incubators,
science parks, and some NGOs. Lately more holistic conceptualizations of entrepreneurship as a
specific mindset (see also entrepreneurial mindset) resulting in entrepreneurial initiatives e.g. in
the form of social entrepreneurship, political entrepreneurship, or knowledge entrepreneurship
emerged (Trochim 2006).

Sometimes we can ask a question that why some people start up a business? And what impact
will be of such entrepreneurial ideas on the growth, unemployment and common prosperity.
Hebert and Link identifies three intellectual traditions in the development of the entrepreneurial
literature: the German tradition, Chicago tradition and the Austrian tradition. Much of modern
thinking anout entrepreneurship focuses on the cognitive process by which individuals reach the
decision to start a new firm. According to Sarasvathy “An entrepreneurial opportunity consist of
set of ideas, beliefes and actions that enable the creation of the future goods and servies in the
absence of current markets fro them. He also provides a typology of entrepreneurial
opportunities as consisting of opportunity recognition, opportunity discovery and opportunity
creation. Krueger in his research on individuals who become entrepreneur and why other do not
defines the nature of entrepreneurial thinkng as “the heart of entrepreneurship is an orientation
toward seeing opportunities”. The traditionally approach to entrepreneurship holds the context
constantand and then asks how the cognitive process inherent in the entrepreneurial decision
varies across different individual characteristic and attributes (Twaalfhoven, and Indivers 1993).
Statistically, successful entrepreneurs often have enough work and managerial experience,
especially work experience in large enterprises (Goldstein, 2009) and because of this previous
experience entrepreneurs would obtain good business insight, important business skills and
relevant managerial knowledge. Township and village enterprises have played significant role in
promoting rural employment and economic growth and reducing disparity of urban and rural
economy.

In 1999 Timmons developed the model of entrepreneurial process which holds that new venture
creation is a highly dynamic balance process between entrepreneurial opportunity, entrepreneur
team and recourses ant that opportunity, recourses and tam are the key factors in the
entrepreneurial process. He also suggests that the vagueness of opportunities, market
uncertainities, risk of capital market, ad external envirommental factors would affect
entrepreneurial process and make new venture creation full of risk and uncertainities, This
results in an imbalance between entrepreneurial opportunity, entrepreneurial team and recourses.

To choose the definition of entrepreneurship most appropriate for the rural area context, it is
important to bear in mind the entrepreneurial skills that will be needed to improve the quality of
life for individuals, families and communities and to sustain a healthy economy and
environment. Taking this into consideration, we will find that each of the traditional definitions
has its own weakness (Tyson, Petrin, Rogers, 1994). The first definition leaves little room for
innovations that are not on the technological or organizational cutting edge, such as, adaptation
of older technologies to a developing-country context, or entering into export markets already
tapped by other firms. Defining entrepreneurship as risk-taking neglects other major elements of
what we usually think of as entrepreneurship, such as a well-developed ability to recognise
unexploited market opportunities. Entrepreneurship as a stabilising force limits entrepreneurship
to reading markets disequilibria, while entrepreneurship defined as owning and operating a
business, denies the possibility of entrepreneurial behaviour by non-owners, employees and
managers who have no equity stake in the business. Therefore, the most appropriate definition of
entrepreneurship that would fit into the rural development context, argued here, is the broader
one, the one which defines entrepreneurship as: "a force that mobilises other resources to meet
unmet market demand", "the ability to create and build something from practically nothing", "the
process of creating value by pulling together a unique package of resources to exploit an
opportunity".(It combines definitions of entrepreneurship by Jones and Sakong, 1980; Timmons,
1989; Stevenson, et al., 1985)

By the help of Juyi Shoes company which is considered as entrepreneurial company China
turned from a poor rural country into a manufacturing powerhouse. In 1988, Li Anlian borrowed
money from relatives and started business of making shoes from spare bits of leather. Managed
these days by her son, the company now employs 3,800 and produces 10m pairs a year for
clients that include Zara of Spain.

Many of Ms Li’s neighbours have similar stories. Juyi is based in Wenzhou, a city 250km south
of Shanghai whose resilient entrepreneurs have made it the standard-bearer of China’s private-
sector economy. By some estimates, the city has 300,000 small businesses.

Tales of cunning entrepreneurs abound. Nan Cunhui repaired shoes until he and a few friends
started to make light switches from spare parts in the evenings. From that he has built up Chint,
China’s biggest manufacturer of electrical power equipment, with sales of $2.3bn (£1.5bn,
€1.7bn) a year. (One of his friends in the early business left to found his own company, Delixi,
which is now the second biggest Chinese company in the industry.)
“The interesting thing is that the guys at Chint and elsewhere started off as peasants and have got
where they have all on their own,” says Xie Jian, professor at Wenzhou University’s City
College. Manufacturing success, he argues, has often come despite rather than because of the
authorities in Beijing: “The companies have always been one step ahead of the government.”
(Dyer, 2008)

Behind each of the success stories of rural entrepreneurship there is usually some sort of
institutional support. Besides individual or group entrepreneurial initiative the enabling
environment supporting these initiatives is of utmost importance.

The creation of such an environment starts already at the national level with the foundation
policies for macro-economic stability and for well-defined property rights as well as
international orientation. Protection of the domestic economy hinders instead of fosters
entrepreneurship. National agricultural policies such as price subsidies to guarantee minimum
farm incomes and the keeping of land in production when over-production already exists are
definitely counter-productive to entrepreneurship.

As argued in several recourses entrepreneurship depends crucially on the ability to establish


firms, i.e. to find organisational forms for business ventures that facilitate long-term business
relations within and around a firm, that is to say, individual entrepreneurship depends on
mechanisms for co-ordinating individual or organisational behaviour of firms.

Questions to the research:


Why the entrepreneurship should be developed in rural areas.
How the development of entrepreneurship will impact to the rural area
How entrepreneurship will affect to the economical growth
Which policies should be implemented to create suitable environment
Who are the potential entrepreneurs in the rural areas?
Motivation and training of potential candidates

Methodology:
Research is a way which helps to find things our, to discover problems, even out gaps in the
literature or develop new ideas. It somehow advances knowledge. Research always brings
learning and it entails critical and creative thinking. The chosen topic aims to get better
understanding effectiveness of entrepreneurship, the development of this phenomenon in rural
areas, advantages and disadvantages of this progress. Besides, one of the goals of the work will
be to determine factors that create better environment for entrepreneurship to prosper in anti-
urban areas and necessity of training people and expansion of knowledge on entrepreneurship of
local inhabitants.
The main aim of research is to produce new knowledge or expand the previous one. The research
usually done by 3 forms:
Exploratory research identifies and formulates new problems, constructive research finds out the
solution of the problem. Empiricial – test the feasibility of solution. Also research can fall into
two types: primary and secondary.

Qualitative researchers may use different approaches in collecting data, such as the grounded
theory practice, narratology, storytelling, classical ethnography, or shadowing. Qualitative
methods are also loosely present in other methodological approaches, such as action research or
actor-network theory. Forms of the data collected can include interviews and group discussions,
observation and reflection field notes, various texts, pictures, and other materials.

Qualitative research often categorizes data into patterns as the primary basis for organizing and
reporting results Qualitative researchers typically rely on the following methods for gathering
information: Participant Observation, Non-participant Observation, Field Notes, Reflexive
Journals, Structured Interview, Unstructured Interview, Analysis of documents and materials.

Primarily, suitable data will be collected. Once the relevant data will be collected I will identify
the most relevant method. For the beginning the questionnaires to the relevant field of people
will be sending. The arrangement of focus groups is also considered. Firstly questionnaires
reflecting questions which will help to identify gaps in the statement will be prepared. Different
types of question choice options, like ranking, ticking the boxes will be presented in the
questionnaire besides open questions will be prepared to highly require managerial staff.

Time table:
In professional research which I am aiming to do time management is one the important factors
that need to be done properly. The topic is very interesting for me and during the research time I
have discovered more attractive aspects. Regretfully, time limitations forces to narrow the
research area to the specified field and conclude the whole dissertation in 3 month period. The
approximant timing will be as following:
Final formulization of objectives: 1 week
Expanding literature review: 3 weeks
Methodology selection: 1 week
Data collection: 2 weeks
Preparation of questionnaires or interviews: 1 week
Analysis of data: 3 weeks
Summarizing, recommending: 1 week
Final overlook, amending: 1 week
Submission
References and bibliography:
Andrews R, (2003), Research questions, Continuum Research Methods Series, Continuum
International Publishing.
Trochim, W.M.K, (2006). Research Methods Knowledge Base.
Marshall, Catherine & Rossman, Gretchen B. (1998). Designing Qualitative Research. Thousand
Oaks, CA: Sage.
Dyer Geoff (2008) “Unmade in China” Financial Times, published 16 december 2008

Timmons, J.A. (1989). The Entrepreneurial Mind. Andover: Brick House.

Matlay H. (2006) Education and trainin,volume 48, number 5: Entepreneurship Education”,


Emerald Group Publishing

Timmons J.A, Spinelli S., Zacharakis A. (2004) “How to raise capital: Techniques and Strategies
for Financing and valuing your small business”, The McGraw – Hill Companies

Ilozor B., Sarki A., Hodd M., “Entrepuneurship: Teaching, research and Service Across
Academic Di

Petrin T. (1994) Entrepreneurship as an economic force in rural development”, Herrsching,


Germany

Byrd, W.A. (1987). 'Entrepreneurship, capital and ownership'. Washington, D.C. The World
Bank. Mimeo.

Johonstone, W.D., C. Nicholson, M.K. Stone and R.E. Taylor (1990). Community Work,
Billings Book Plan, Worcester, Great Britain.

Jones, L. and I. Sakong (1980). Government, Business and Entrepreneurship in Economic


Development: Korean Case, Cambridge, MA: Harvard University Press, pp. 190-207.

Petrin, T. (1990). 'The Potential of Entrepreneurship to Create Income and New Jobs for Rural
Women and Families', paper presented at the Fifth Session of the FAO/ECA Working Party on
Women and the Agricultural Family in Rural Development, Prague, 2-5 October.

Petrin, T. (1991). 'Is Entrepreneurship Possible in Public Enterprises'?' in J. Prokopenko and I.


Pavlin (eds.), Entrepreneurship Development in Public Enterprises, ILO, Geneva and
International Center for Public Enterprises in Developing Countries, Ljubljana, pp. 7-33.
Petrin, T. (1992). 'Partnership and Institution Building as Factors in Rural Development', paper
presented at the Sixth Session of the FAO/ECA Working Party on Women and the Agricultural
Family in Rural Development, Innsbruck, Austria, 13-16 October.

Schwager-Jebbink, J. (1991), Views From the Top, Management Education and Development
for Women Conference, Henley Management College, 5 October.

Stevenson, H.H, et al. (1985). New Business Ventures and The Entrepreneur. Homewood, IL:
Irwin.

Twaalfhoven, B.W.M. and N. V. Indivers (1993). 'The Role of Dynamic Entrepreneurs' in


Dynamic Entrepreneurship in Eastern Europe, D.F. Abell and T. Koellermeier (eds), Delwel
Publisher, The Hague, 1993, pp. 7-13.

Tyson, L., T. Petrin and H. Rogers (1994). 'Promoting Entrepreneurship in Central and Eastern
Europe', Small Business Economics 6, pp. 1-20.

Weber, M. (1987). The Protestant Ethic and the Spirit of Capitalism, Unwin, London (orig.
published 1930).

Goldstein J.A (2009) “Complexity science and social entrepreneurship”, Litchfield Park, p 45
Glaeser E.L., (2009) “Cluster of entrepreneurship”

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