Proceedings ICABR 2015

Transkript

1 Mendel University in Brno Proceedings ICABR 2015 X. International Conference on Applied Business Research September 14 - September 18, 2015 Organised by: Mendel University in Brno, Czech Republic, Universidad Politécnica de Madrid, Spain, Slovak University of Agriculture in Nitra, Slovak Republic and Kasetsart University, Thailand

2 Mendel University in Brno, Czech Republic ISBN

3 Contents Akhmedova Anna / Succession as Career Choice An Exploration of Female Motivation Aldaz Natalia, Millán Joaquín / An Analysis of House Prices and Economic Activity in the Frequency Domain for Selected OECD Countries Almádi Bernadett, Szilágyi Pál Tibor, Szarvas József, Rácz Gergely, Lajos Attila / Opportunities of Making Use of Renewable Energy in Growing Mushroom Through a Hungarian Case Study Alvarez Eduardo Von Bennewitz, Aliaga Patricio, Díaz Ximena Quiñones, Bravo Juan Pablo Hernández, Madariaga Victor Manuel Moya / Vitrina Campesina : Contribution of ICT to Agritourism Development in the Maule Region, Chile Asfourová Nicole, Konečný Ondřej, Miškolci Simona, Lategan Francois, Zdráhal Ivo / Community-supported Agriculture: Towards the Framework for assessing its functionality in the Czech Republic Babayan Davit, Herzfeld Thomas, Kadlečíková, Mária / Commercialization Of Regional Agricultural Supporting Centers In The Republic Of Armenia Badalyan Gohar, Rajcaniova Miroslava / The Impact Of Infrastructure On Agricultural Production: The Case Of Transition Countries Bajusová Zuzana, Pavľakova Stanislava, Bajus Peter, Dobák Dušan / Impact of Biofuels Production on the Structure of Agricultural Land in Visegrad Countries Bamwesigye Dastan, Pomazalová Nataša, Tamáš Vojtěch / Socioeconomic Development in Context of Economic Changees in Commodity Chain of Cofeee in Uganda, East African Region Bartova Lubica, Konyova Veronika / The Slovak Regional Economy Structural Changes and European Integration Bergamini Tiziana Priede, Navarro Cristina López-Cózar, Hilliard Ivan / Analysis of The Relevance of Crowdfunding as an Alternative Source of Finance for Social Enterprises Blažková Ivana, Chmelíková Gabriela / The Impact Of Import Competition On The Development Of Market Concentration In The Czech Food And Beverages Industry Blizkovska Marie, Groenewege Hoppener, Tirza / Multisensory stimuli and memory: the effect of sensory conflict in memorizing audio-visual stimuli Blizkovsky Petr / Management of economic change: a case relating to the agriculture policy of the European Union Braha Kushtrim, Cupak Andrej, Pokrivčák Ján, Qineti Artan, Rajčániová Miroslava / Selected Aspects of the Food and Nutritional Security (FNS) and Demand for Food Diversity in the Case of Kosovo

4 Cabicarová Monika, Bajtová Kristýna, Korecki Zbyšek / Food security in the refugee camp Dadaab Calzadilla Jesus, Lopez Jose Luis, Villa Aurelio, Fortini Julio / Preliminar Analysis Of Development Programs Performance Corejová Tatiana, Kassiri Mário Al, Valica Marek / Comparison of Innovation Indexes within Selected EU Countries Darkwah Samiel Antwi, Máchal Pavel / The use of project management to ensure peoples right to food after natural disasters Dirgasová Katarína, Mandalová Kristína / Impact Of Legislative Imperfections On The Agricultural Land Market In Slovakia Dobišová Mária, Šajbidorová Mária, Lušňáková Zuzana / Position of Unfair Competition as a Part of Economic competition in Conditions of SR Dolinová Lucie / The Influence of Social Policy Expenditures on Poverty Reduction Drábeková Janka, Švecová Soňa / Solving The Microeconomics Problems By Using The Tools Of Geogebra Dudová Barbora, Tamáš Vojtěch / Canola Price and Production Consequences Dvořák Tomáš, Samuel Antwi Darkwah, Zdráhal Ivo / Food Security in Zambia in the Context of MDGs Gregáňová Radomíra Hornyák, Vaňová Alexandra Ferenczi, Krajčírová Renáta, Váryová Ivana, Košovská Iveta / Comparison And Assessment Of Credit Repayment In Terms Of Mathematics And Finance Gurbuz Bulent, Tipi Tolga / Small and Medium Enterprises: Threats for Sustainable Rural Development Hanová Martina, Prokeinová Renáta Benda, Hallová Marcela, Čierna Zuzana / Economic Position of the Slovak Inhabitants in Europe Hernández Sonia Benito, Jaime Manuel Platero, Sánchez Pablo Esteban, García- Salmones-Fernández María Lourdes / The Influence of Cooperative Relations of Small Businesses on Environmental Protection Intensity Hlaváčková Petra, Březina David / Benefits of the forest enterprise for the regional economy Hooshmand Haniyeh, Afsar Amir / Prioritizing Of Knowledge Management Critical Success Factors In Electronic Banking Using Fuzzy Analytic Network Process Hoti Erind / Complexity and Timing of Technological Innovation in Small and Medium Enterprises and their Relationship to External Communication and Organizational Activities

5 Hrabálek Martin, Machačová Lucie / Changes in the Foreign Trade of Visegrad Countries in the Milk and Dairy Products Hrdá Veronika / Competitiveness of Viniculture and Viticulture in Slovakia Hřivna Luděk, Kong Joany Lizet Hernández / Dynamics of Yield and Quality of Sugar Beet Decides About its Economic Expansion Hurnakova Jaroslava, Bartova Lubica, Fandel Peter / Investment Support and Farm Performance in the Slovak Republic Husár Andrej, Paseková Natália / Corporate Social Responsibility In The Economy Of Slovakia Chocholáč Petr, Tapachai Nirundon / Organizational resilience of SMEs in the Czech Republic: an exploratory analysis Jarosz-Angowska Aneta / Trade Policy of the European Union and United States and its Impact on Mutual Trade Turnover Judinová Eva / Determinants Of Slovakian Wine Exports: A Gravity Model Approach Kakol Magdalena Katarzyna / Theoretical Versus Real Benefits of the EU Internal Market Kania Józef, Żmija Janusz / Changes in Agricultural Knowledge and Information Systems: Case Study of Poland Kapsdorferová Z., Kadlečíková M., Bulíková N. / Product Innovation Through Selected Planning Method Used In Quality Management Kollár Bohuš, Sojková Zlata / Z-Score: Does It Work? Konečný Ondřej / Turnover of Rural Tourism Support in the Czech Republic: Changes in Programming Periods Kopeckova Martina / The Importance Of Technical Competences For Successful Project Management Korecki Zbyšek, Staňková Magdaléna, Cabicarová Monika / Changing the level of food security due to changes in the level of safety in Central Africa Košičiarová Ingrida, Nagyová Ľudmila, Rybanská Jana, Holienčinová Mária / Celiac Disease: Consumer Behaviour In The Field Of Gluten Free Products In The Case Of Slovak Republic Kozáková Jana, Palkechová Lucia / Agritourism And Rural Tourism In Slovakia (Selected Aspects) Krizanova Anna, Majerova Jana / Corporate Social Responsibility of Car Brands and Slovak Customer's Perceptions Perceptions Perceptions

6 Kudrat Nurmetov, Pokrivcak Jan, Pulatov Alim / Assessment of land degradation costs in Khorezm, Uzbekista Lajdová Zuzana, Kapusta Jaroslav, Bielik Peter / Price Linkages Between Biofuels And Food Commodities Lateckova Anna, Balesova Petra / Improvement Of Information Support System For Manager Lesakova Dagmar / Seniors Lifestyle and its Role in the Perception of the Store Attributes Lopez Jose Luis, Calzadilla Jesus, Villa Aurelio / A Proposal: Agro-Erasmus Malejčíková Alexandra, Kozáková Jana / Manufacturing of Food Products in Selected European Countries: Small and Medium - Sized Enterprises Categories Comparison Martincová Marta / The Impact of Investment in Education on Labour Market in the Knowledge-Based Economy Melo Daniel egional Disparities: Innovation Performance & Socio-Economic Slovak Agriculture Millàn Joaquín, Aldaz Natalia / Explaining Size Economies in the Spanish Provinces Mravcová Anna / The Implementation Of Development Issues Into The Educational Process And The Preparing Of New Study Program At The Slovak University Of Agriculture Nambuge Dimuth, Lazorcakova Ema, Slovakova Dominika / Role of aid on international trade and its effects on chosen markets Niebauerova Daniela / General and specific factors of deforestation in Costa Rica and Nicaragua Nonthanathron Phiphat / Causal Factors of Socially Responsible Leadership Influencing on Corporate Image of Phuket International Airport Oláhová Eva, Ujlaky Jozef / Implementation Techniques For Automated Deployment Of Operating Systems On End User Devices Országhová Dana / The Function of Two Variables Useful Tool for Maximizing of the rofit and Utility Ostadzadeh Mahboubeh, Afsar Amir / Modeling the Factors Affecting Customer Trust in Meat Packaging Palát Milan, Dvořáková Šárka / Population Aging and its Potential Implications for Public Health Insurance: The Case of the Czech Republic Palát Milan / Recent Attitudes Towards Immigration and Integration of Migrants in Norwegian Society

7 Palkovič Jozef, Fusková Martina, Sojková Zlata / Competitiveness Of The Eu Regions: Comparison Of The Nuts 2 Regions Using Regional Index Of Competitiveness Paluchová Johana, Kleinová Katarína, Berčík Jakub, Horská Elena / The Perception of Merchandising Visual Components in the Fast Food Restaurants of Chosen Shopping Mall Pavlakova Stanislava, Zentkova Iveta, Bajusova Zuzana, Dobak Dusan / Impact of Business Entities on Regional Development and Growth in the Slovak Republic Peinador Dan, Jiménez María Antonia, Jiménez Vicente Jesús, Alberola José Ramón / The Role of Pharmacies in Disease Screening Using Wireless Systems Phonesavanh Anousone / Thai Tourists Travelling Behavior, Satisfaction, Loyalty of Thai Tourists towards Champasak Province, Lao PDR Piovarčiová Veronika, Piovarči Andrej / Financial Integration and the Global Financial and Economic Crisis Pokrivcak Jan, Tóth Marián, Zima Štefan / The Political Economy Of Capping Direct Payments In Slovakia Pokrivcak Jan, Záhorský Tomáš, Svetlanská Tatiana / Evaluation Of Technical Efficiency And Productivity Of Agriculture In EU Member States Pomazalová Nataša / A Survey of Groups Involved in Mobilization of Sustainable Rural Movement Popelka Vladimír, Popelkova Marta / Non-Pathological Narcissism And Social Competence Popelka Vladimír, Zaťová Marta / Posttraumatic Growth Among The Unemployed Without Working Experiences Randáková Monika, Bokšová Jiřina / Bankruptcy of Individuals in the Czech Republic Rehor Petr / Strategic Planning of Municipalities Repiský Jozef / Assessment Of Risks In The Investment Project Of Cattle Production Režňáková Mária, Karas Michal / Are Financial Bankruptcy Predictors Branch-Specific? Evidence from Czech Manufacturing and Agricultural Companies Richterová Lucia, Paseková Natália / Youth Employment In The Slovak Agricultural Sector - Barriers To Business And Employment Rost Michael, Tlustý Pavel, Klufová Renata, Lososová Jana / Uncovering of Interesting Structures in Bank Loan Data Through Bayesian Networks Rybanská Jana, Nagyová Ľudmila, Košičiarová Ingrida / Personality Of Consumer As A Predictor Of Irrational Consumer Behaviour Under The Influence Of Sensorial Stimuli

8 Sapáková Eva, Horký Pavel / Economic Aspect of Garlic Production in the Czech Republic Skorecová Emília, Ďurkáčová Petra / Importance Of Environmentally Oriented Accounting In Enterprise Effectiveness And Sustainability Management Smolík Josef / Brainstorming and its Applicability in Security Practices Smutná Jana, Hübelová Dana / Selected Aspects of Immigration into the Kingdom of Sweden Somerlíková Kristina, Vykoukalová Zdeňka, Čermáková Denisa / Tourism Industry in Latin America Sredl Karel, Severová Lucie / The Flower Market in the Czech Republic and its Spatial Dimensions Strouhal Jiří, Havlová Kristýna, Pernica Karel / Willingness of European Companies to ontime Presentation of their Annual Reports Stuchly Peter, Krutakova Petra / Analysis of a Process in Relation to the Enterprise Information Systém Suntraruk Phassawan / The Existence of Financing Hierarchy of Firms Listed in Thailand Sutthichaem Paradee, Prasertsakul Dissatat / How Much Country of Origin Image Matter in Building Luxury Brands: A Case of Thailand Svatošová Veronika / Modelling of Financial Strategy in Agricultural Company Szarowská Irena / Direct and Indirect Funding of R&D and Generosity of Tax Subsidy for R&D in Selected Countries EU Szilágyi Tibor Pál, Csiszárik-Kocsir Ágnes / Investment Profitability Measurements and their Application Based on the Results of a Primary Research Taterova Eva, Vladar Jiří / Chinese Foreign Policy Towards the Dispute of Spratley Islands Tejeiro Koller Manuel Ramón,,,, / The Origin of the Adaptive Advantage Concept and its Application through Corporate Culture Management Terek Milan, Kročitý Peter, Muchová Eva / The Using of Some Association Description Methods in the Analysis of Information Flows about Scholastic Honesty Tipi Tolga, Gurbuz Bulent / Overview of Turkish Agribusiness, Strategies and Policies Tóth Marián, Piterková Andrea, Serenčéš Peter, Čierna Zuzana, Holúbek Ivan / Development of Risk and Return Slovak Crop Animal Farms Tóth Marián, Lančarič Drahoslav, Piterková Andrea, Savov Radovan, Prístavka Miroslav / Development And Determinants Of Students Financial Literacy. Case Of Slovakia

9 Tothova Darina, Fabus Juraj / Portal Of Slovak Universities Turčeková Natália, Svetlanská Tatiana, Kollár Bohuš, Záhorský Tomáš / Assessment Of Environmental Performance Of Slovak Agriculture Verter Nahanga, Bamwesigye Dastan, Darkwah Samuel Antwi / Analysis of Coffee Production and Exports in Uganda Virágh Roderik, Hennyeyová Klára, Šilerová Edita / Evaluation Of Information Security And Use Of Ict In Selected Agro Sector Enterprises Of The Slovak Republic Vltavská Kristýna, Šimková Martina, Sixta Jaroslav / Construction of the Regional Input- Output Tables of the Czech Republic Vrankova Jana / Influence of Domestic Natural Gas Production on Energy Security of the USA Vyklický Martin, Jurčík Radek, Srdošová Kristína / European Policy in Relation to Small and Medium Sized Enterprises and their Importance in the Field of EU Procurement Market Wiesława Caputa / Marketing and Financial Value of Brand in the Light of Research Zaťková Tímea Šeben / Global Development Education as a Tool for Professional Development at Faculties of Economics Zdráhal Ivo / Changes in the Foreign Trade of Visegrad Countries in the Milk and Dairy Products Zeithamer Tomáš R., Pospíšil Jiří / Newton s Laws of Motion in Economics

10 Small and Medium Enterprises: Threats for Sustainable Rural Development I. Bulent GURBUZ 1 Tolga TIPI 2 Abstract: For any nation's economic development, small & medium sized enterprises are considered as powerful engines. Although the number of agricultural enterprises within the family farming category is unknown, the nature of the economic, social, environmental and demographic problems that are faced by the enterprises of this nature and their regional repercussions stands out as important issues. In this study, the agricultural enterprise that uses family labour, completely or predominantly, is examined. Also, rural population and the ongoing trends in rural unemployment is researched. From this perspective, the tendency of family labour against the threats of rural disintegration is discussed. Key words: Sustainable rural development, small and medium enterprises, rural tourism. Introduction There is worldwide consensus that high rates of economic growth lead to economic and social development which contributes to poverty reduction. At the same time, there is growing recognition that poverty reducing growth depends on the quality of growth: its sustainability, composition and distribution. As globalization proceeds, transition and developing countries and their enterprises face major challenges in strengthening their human and institutional capacities to take advantage of trade and investment opportunities. This has become a top priority on the global development agenda and features prominently in the final statements of key international meetings over the past few years, including the Doha Declaration and the Monterrey Consensus. Small and medium-sized enterprises (SMEs) play a very important role in each economy owing to their large share in total number of enterprises and in total employment. But, generally speaking especially in developing countries they have some weaknesses such as lack of consciousness of technology, lack of capital for high technology investments, lack of institutionalization, lack of usage of modern marketing techniques, lack of consciousness of quality and trademark concepts, insufficient access to finance, insufficient credit guarantee system, 1 bulbursa@gmail.com Uludag University Dep. Of Agr. Economics Gorukle/Bursa/Turkey 2 ttipi@uludag.edu.tr Uludag University Dep. Of Agr. Economics Gorukle/Bursa/Turkey 267

11 insufficient education level, low level of cooperation, lack of harmonization to global standards, low level usage of bank credits, R&D and innovation. While human resource development issues are fundamental to improve SME competitiveness, an SME development strategy should also address issues such as sustainable use of natural resources. Agriculture and agro-processing, including use of forest and tourism figure predominantly among the industries where developing countries have comparative advantages. SME development strategies, while emphasizing environmental sustainability in a general sense, may also prioritize the promotion of good housekeeping practices in small businesses resulting in improved productivity without the need for major investments and utilization of cleaner production techniques to cut down production costs, thereby contributing to improved competitiveness. Encouraging rural development means dealing with an area that includes 95% of the territory and 36% of the population of the OECD countries. In this structurally weak environment with clear deficiencies in the socioeconomic framework, the agricultural sector has a strategic role since it encourages the growth of all the so-called minor activities, such as handicrafts, farm holidays, food and wine based tourism. As the primary sector continues to decline, there is a need to transform the economic structure of rural areas. The tertiary sector, particularly the tourism industry, is considered to have become the main driver for growth and employment. Challenges for rural sme expansion Small scale: Rural enterprises frequently operate on a local basis with low economies of scale and scope. They tend to be family run and initial resources such as set-up costs and expertise commonly originate within the entrepreneur s social networks, such as family and close friends (Hite & Hesterly, 2001; Larson & Starr, 1993) in addition to a government financial grant and/or a small loan. Labour intensive: In rural areas, production and service activities are customarily labour intensive (Wiggins & Proctor, 2001), traditionally in agriculture and more recently in the craft food and product sectors with minimal equipment and technology being used in production processes. Although this adds considerably to employment opportunities in rural areas, it can represent a financial drain on the rural SME. Lack of capital: Due to scarcity of capital and a lack of access to sources of credit particularly in the current recession, investment in equipment, expertise and market research for national or international expansion may be limited. Recent research suggests that liquidity is a matter 3 of concern for SMEs as cash is such a critically scarce resource as a result of supply constraints, which do not exist to the same extent for large, urban firms (Battisti et al., 2013). Local market scope: Many micro-enterprises strive to find both their customers and suppliers within a very local space. Rarely does the scope of their business activity extend beyond the immediate environment. Growth Orientation: Much small firm literature would express growth as an entrepreneurial or SME fundamental (Gartner, 1990), however this assumption is at odds with many small firms operating in peripheral regions. SME growth in rural areas remains low, and this disparity may be due to the way in which the SMEs view their social and economic surroundings. For example, rural based SMEs may assume growth within their sector is not possible beyond a certain level as they focus on a narrow geographic scope 268

12 whereas for others quality of life protectionism supersedes growth ambitions where they view their enterprise from a craft or lifestyle perspective (McGrath & O Toole, 2013). Resource Constrained: The size and peripheral location of rural SMEs can make them particularly vulnerable to resource constraints which can impair innovative, growth inducing activities. Many small firms fail to meet growth targets or cease operation within a few years of creation and a lack of resources including financial resources, human expertise, time, and having a limited impact on the marketplace are often cited as major contributing factors (Lee et al., 2010). Lack of Strategic/business Planning: Being time constrained, owner/managers of rural SMEs may lack the time to step away from the treadmill of day-to-day activities and strategically plan for the long-term success and growth of their business. This translates to informal, iterative, incremental and unstructured planning hindering the development and growth of SMEs (Brinckmann et al., 2010). Rural Tourism and land use planning At present, agriculture and land farming are no longer considered only food production sectors. Through its multifunctionality, agriculture leads to the creation of new economic activities. Starting a business in countryside has the following advantages: in most rural areas, there is a numerous and cheap labour force; the material resources are available at smaller prices; the prices of land and buildings are lower than in the urban area; in many business fields the direct competition is absent; there are unexploited potential markets. The diversification of the non-agricultural utilization of available resources in the rural area makes it possible to develop an entrepreneurial sector oriented to the following activities: non-agricultural production activities; handicraft activities; commercial activities; services for the rural population; renewable energy production; financial-banking and advisory services; tourism activities, etc. Tourism is the most powerful economic branch worldwide, with complex functions and multisectoral implications. With about one hundred thousand employees worldwide, tourism stands out as the most important employer. In this context, the rural tourism has emerged and developed, embracing all the tourism activities in the rural areas, with the purpose to put into value the natural and human potential of villages. This is considered as the meeting place of the rural culture with the urban culture, which is much more sensitive to the nature. Rural tourism is also an occupational alternative for the rural labour force, a modality for the diversification of the economic activities, generating alternative incomes and it represents a factor of rural population s stabilization. Land use planning is a subset of public policy that seeks to secure the best and most efficient use of land. Governments use a variety of land use planning instruments including aspirational plans (e.g. comprehensive plans, strategic plans, growth management plans) and regulatory mechanisms (e.g. zoning, use rights and development guidelines) to guide 269

13 the development, use and management of land. Historically, land use planning activities have aimed to identify and articulate strategies and guidelines for the use of land that protects health and well-being, that uphold public interests, and that secure the orderly and economically efficient sequencing of land development. Plans and regulatory instruments are generally focused at a local or regional level with objectives including, reducing land use conflicts, improving liveability of urban regions or protecting agricultural production. Within this context, tourism has often been reduced to a series of land uses such as shops, restaurants, accommodation, airports, transport terminals and visitor attractions, and dealt with as individual development applications under a planning scheme (Dredge & Moore, 1992). This approach can produce a number of potential problems: Tourism is not easily reduced to a set of land uses. It can involve activities and experiences on land and in buildings also used for other purposes. For example, rural tourism and farm stays often take place on working farms. Likewise, in a coastal destination, residents wanting to avoid the high season may rent out their houses to tourists, thus contributing to a tourist accommodation residential mix. In this case, the land use remains the same yet the dynamic flow of tourists and residents in and out of the area produce a blurring of tourism and residential activity. The reduction of tourism into land uses fails to acknowledge the interactions and synergies between individual land uses that create intangible characteristics (such as character, vibrancy and sense of place), which often contribute to the unique selling points and overall competitiveness of a destination. For example, a planning scheme may deem commercial land uses in rural areas as inappropriate development. However, where those commercial establishments are local produce stores, wineries or farm produce-based restaurants, these uses may be appropriate under certain conditions. They may even add to the rural character and vibrancy of a destination, provide opportunities for economic diversification, and contribute to the long-term sustainability of agricultural lands. Assessment of individual applications for development or change of land use can fail to take into account the cumulative effects of developments on the overall direction, intensity and character of tourism. In Spain, for example, the impact of integrated resorts, hotels and condominium developments in some coastal areas has contributed to significant environmental problems and concerns over the long-term sustainability of many destinations. The compartmentalisation of different policy areas, the lack of attention to the cumulative effects of development, and the lack of co-ordination between infrastructure planning (e.g. sewerage treatment plants, water supply) and development approvals have been identified as contributing to this situation (Ivars Baidal, 2003). Land use planning can lock-in the use of land and does not easily respond to changing market conditions (Dredge & Coiacetto, 2011). For example, as market conditions change over time and tourists demand different or improved services and facilities, tourism accommodation developments can reach the end of their economic life. Applications for change of use to other tourism (e.g. hostel accommodation) or non-tourism uses (e.g. residential flats) are likely to impact on the synergy, cohesion and functionality of surrounding tourism activity and land uses. These factors suggest that the reduction of tourism into a set of land uses can have a profound influence on the overall trajectory of a destination s development and on intangible aspects such as destination image, character and sense of place. Competitiveness and the capacity of the destination to innovate can also be compromised, especially if a development proposal involves a combination of land uses not previously anticipated. In such cases, a lengthy application process may result, which can add cost and time to the process, and decrease the attractiveness of a destination for tourism investment. 270

14 Conclusions: A nation s growth is reflected in the quality of life of its people. Development of a nation depends on the quality of growth: its composition, distribution and sustainability. High rates of economic growth do contribute to a nation s economic and social development. However mere high growth rates alone do not contribute in building a nation s economy. A long run sustainable growth rate is equally essential to a nation to move from growth path to development. Employment generation, innovation, well distributed economic activity across population, sectors, geography along with good governance lead to inclusive growth, bridging various divides in a nation thus fostering quality life. Clearly policy interventions must address the rural SME characteristics, which restrain the development of network capability which limits the use of collaboration, cooperation and coopetition as a strategic business tool option. Globalization created a new global business environment for the enterprises and although the enterprises in all sizes have been heavily affected by the globalization SMEs as received much more attention than the other ones in international circles. The main reason for this is that the SMEs make significant contributions to the economy of both developing and developed countries and their contribution to employment may reach to 93% in some economies (Haxton, 2015). The SMEs are generally accepted as the engine of innovation and growth, and it is known that they help reduce poverty as they are more labour-intensive, but they are constrained by institutional and market failures. In this regards one of the most viable strategies to achieve national development goals in both developing and developed nations is to promote SMEs. SMEs increase competition, generate employment and develop entrepreneurship while boosting economic vitality at the community level and creating sustainable economy. The factors supporting the rural entrepreneurship and the creation of a diverse range of businesses in the rural area are the following: policies and regulations; cultural and social factors; economic factors; natural and environmental factors. The development of micro-enterprises, as well as of the small and medium size enterprises plays an essential role in the rural economy, where it represents a significant source for obtaining incomes and for the promotion of entrepreneurial skill, innovation and job creation. Rural entrepreneurship is labour intensive and provides a clear solution to the growing problem of unemployment. Development of industrial units in rural areas through rural entrepreneurship has high potential for employment generation and income creation The growth of rural entrepreneurship can reduce the social evils like poverty, growth of slums, pollution in cities etc. can fill the big gap and disparities in income rural and urban people. Rural entrepreneurship will bring in or develop infrastructural facilities like power, roads, bridges etc. It can help to check the migration of people from rural to urban areas in search of jobs. can dispel the concentration of industrial units in urban areas and promote regional development in a balanced way. can awaken the rural youth and expose them to various avenues to adopt entrepreneurship and promote it as a career. 271

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