Rural Entrepreneurship Success Factors: An Empirical Investigation in an Emerging Market

Authors

  • Prince Gyimah Akenten Appiah-Menka University of Skills Training and Entrepreneurial Development
  • Robert N. Lussier Springfield College

Abstract

Small businesses in rural communities play a key role in achieving global sustainable economic development because they are the driving force of poverty reduction, job creation, resiliency, and economic development. This study examines the factors that drive the success or failure of small businesses in rural communities in an emerging market. The methodology is survey interview research using a logistic regression model to test the Lussier success vs failure prediction model with a sample of 230 businesses (successful n = 120, failed n = 110) from the rural communities in an emerging market. This study supports the Lussier model validity (p < 0.01) with a high overall accuracy of 71% in predicting a venture as successful or failed. Capital, industry experience, staffing, and marketing skills are the most significant (t-values < .05) factors that distinguish successful from failed rural businesses in an emerging market. The findings can help future, and nascent rural entrepreneurs avoid failure and successfully contribute to economic development. Implications for government agencies, public regulatory bodies, financial institutions, investors, suppliers, educators, professional institutions, and society, as well as limitations and future research, are presented. This study also contributes to the international validity of the Lussier model that can be used in both advanced and developing economies, and it contributes to the development of theory.

Author Biographies

  • Prince Gyimah, Akenten Appiah-Menka University of Skills Training and Entrepreneurial Development

    P. O. Box 1277, Kumasi, Ghana, princegyima@yahoo.co.uk

  • Robert N. Lussier, Springfield College

    Springfield, MA 01109, USA rlussier@springfieldcollege.edu

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Published

2021-11-16

Issue

Vol. 31 No. 4 (2021)

Section

Articles

License

Copyright (c) 2021 Prince Gyimah, Robert N. Lussier

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How to Cite

Rural Entrepreneurship Success Factors: An Empirical Investigation in an Emerging Market. (2021). Journal of Small Business Strategy (archive Only), 31(4), 5-19. https://libjournals.mtsu.edu/index.php/jsbs/article/view/2130