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Recognizing the Reasons for Success of Growth Enterprises at Agriculture Sector of Semnan Province, Iran

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Recognizing the Reasons for Success of Growth Enterprises at Agriculture Sector of Semnan Province, Iran International Journal of Agricultural Management and Development (IJAMAD) Available online on: www.ijamad.iaurasht.ac.ir ISSN: 2159-5852 (Print) ISSN:2159-5860 (Online) Recognizing the Reasons for Success of Growth Enter prises at Agriculture Sector of Semnan Province, Iran Farhad Lashgarara 1* , Alireza Torabi 2 and Maryam Omidi Najafabadi 1 Received: 13 November 2015 , mall and medium enterprises play a significant role in eco - Accepted: 15 January 2016 nomic and industrial development in the developed and de - vSeloping countries. The main purpose of the study was to in - vestigate the key factors in the effective of growth enterprises. The statistical population of this study according to assessment of Agri-Bank of the Semnan Province includes the managers of enterprises in agricultural sector of Semnan Province who were . 6 1 evaluated as successful enterprises (1932 agricultural units). 0 2 t , c For determining the sample 125 persons were selected by using r e a b r m t Cochran’s formula through stratified random sampling. The e s c e b main tool for collecting data was questionnaire. The results in - D A , dicated that 6.4% of agricultural growth enterprises were fully 0 4 5 successful, 79.2% were successful, and 13.6% were rather suc - - 1 3 5 cessful. According to the results, there was a significant difference : ) 4 between the achievement levels of growth enterprises in different ( 6 , t educational groups with confidence level of 95%. In addition, n e regression analysis showed that seven variables of initial capital, m p Keywords: o l current production value, years of activity, number of personnel, e achievement, agriculture v e sector, growth enterprise, firm size, investment amount, and business history altogether D d Semnan Province n explained 47.7% of variance in the growth enterprises. a t n e m e g a n a M l a r u t l u c i r g A f o l a n r u o J l a n o i t a n r e t n 1 Department of Agricultural Extension and Education, Science and Research Branch, Islamic Azad University, Tehran, Iran I 2 Department of Rural Development, Science and Research Branch, Islamic Azad University, Tehran, Iran * Corresponding author’s email: [email protected] 531 Recognizing the Reasons for Success of Growth Enterprises / Lashgarara et al INTRODUCTION According to the resolution no. 34055/46468 Unemployment is one of the major problems dated Nov. 26, 2005 of the Cabinet, growth proj - in Iran. According to the latest report on the ect refers to the projects which are completed world labor market, the numbers of unemployed within 24 months. people have raised from 161.4 million to 196 There exist a variety of views and opinions million during 1996-2011. International Labor about the key factors contributing to achieve - Organization (ILO) (2014) has estimated that ment, which can be divided into three general the number of unemployed persons until 2018 groups: will be incre ased up to 2,500,000. Over the past - Lufman’s view: He conceives of the key fac - five years, economic crisis has triggered the tors of achievement as the requisites for achieve - world’s unemployed population by 32 million ment (Rasekhi & Zabihi Lahromi, 2008) . people. Specially, the numbers of world’s unem - - Tomson’s view: He believes that advantage ployed young people have gone up to 73 million. in one or more factors of achievement over other Many different solutions have been offered to rivals will provide the enterprise with the oppor - solve this problem all over the world. The uti - tunity of survival and advancement (Feizpoor & lization of social and economic potentialities, Moayed, 2008) . the support of small and growth enterprises, - Pankage’s view: He believes that every en - granting unemployment insurance coverage, the terprise has to find a way to achievement based support of small production units through pur - on its own capabilities and resources (Ibid). chasing their products, and contribution to the Rezvani (2011) used the data related to 30 . establishment and operation of low-capital pro - provinces (and also the descriptive statistical 6 1 0 duction and services units are among the poli - method) and showed that there was a significant 2 , r e cies adopted to reduce unemployment rate correlation between the bank credits granted and b m e (Mehralizadeh & Sajadi, 2009) . the level of job creation by the functioning c e D In Iran, the program of “Granting Facilities to SMEs. Jamsheedloo et al. (2011) pointed out , 0 4 Growth Enterprises” was approved and exe - that the monetary, marketing, technical, organi - 5 - 1 3 cuted in 2005 as part of encouragement policies zational, and internal problems of the SMEs 5 : ) adopted by the ninth government in order to en - 4 were responsible for their failure. Zarenezhad ( 6 , t hance economic strength of the private sector in and Ebrahimi (2011) estimated that the degree n e line with the development of private agricultural of deviation of the SMEs from their original m p o l units. Based on this program, facilities were goals for the whole country was about 37.65 e v e granted to growth businesses with a view to percent and showed that there was a positive D d n growth and development of agricultural sector correlation between the level of granted facili - a t n in Semnan Province as with other provinces. ties and the number of jobs created, while the e m e The goal behind the support of growth enter - degree of deviation from the original goals of g a n a prises was to develop and expand the activity of the SMEs and the level of facilities granted to M l such enterprises in line with the reduction of un - them exhibited a negative correlation. Hassan - a r u t l employment (Ravanbakhsh, 2008) . pour and Aghashiri (2011) evaluated 28 poultry u c i r Small and growth enterprises refer to the firms farms in the province of Kohkiloyeh and g A f with less than 50 personnel (UN Industrial De - Boirahmad and showed that there was a direct o l a velopment Organization, 2005) . Such enter - and meaningful relationship between the level n r u o prises are established after obtainment of of education of the executives (and also that of J l a necessary licenses including activity license, es - the employees) and the degree of success of n o i t a tablishment license, business license and oper - these farms at the 5% probability level. Feizpour n r e t ation license in accordance with the relevant and Poush Douzbashi (2008) conducted a study n I rules and regulations in different sectors includ - on the factors contributing to the rapid growth 532 ing agriculture, industry, mining and services. of small production enterprises in Iran during Recognizing the Reasons for Success of Growth Enterprises / Lashgarara et al the 3rd development program. They found that was different in various industrial groups, and the young age of enterprise, contribution of ac - old enterprises were more likely to be suspended tive technicians, expenses incurred for market - compared with young enterprises. Mozaffar ing, and access to market had a significant Amini and Ramezani (2006) evaluated the fac - positive impact on the rapid growth of enter - tors influencing the achievement of poultry rais - prises. They also found that the size of enter - ing cooperatives in Tehran province. The results prise had a significant, yet non-linear, impact on indicated that the cooperatives had not suc - the rapid growth of enterprises. The rapid ceeded in achieving the goals specified in the ar - growth of small enterprises may also be affected ticles of association of rural cooperation by the ownership and productivity of the enter - organization and had failed to meet the expec - prise. The study by Ceranic et al. (1990) on the tations of the members. Route analysis test re - development of SMEs in Serbia led to the con - sults indicated that the performance of clusion that the success or failure of SMEs de - cooperatives association, technical skills of pend on their size and on the type of their managers, history of membership in coopera - activity. Chngu (2006) carried out research on tives, amount of participation in cooperatives, the performance of SMEs in South Korea with amount of members’ benefit from the coopera - respect to efficiency and productivity and found tives, quality of educations provided, identifica - that the productivity index of SMEs having tion of members, the number of educational fewer than 50 employees exhibited a higher courses, and skills of managers were respec - growth rate than that of the larger SMEs; and tively the most influential factors in the achieve - the improvement in the production and in the ment of cooperatives. 6 1 productivity of the firms with a capital of less In Iran, there are great potentialities and oppor - 0 2 , r than a billion (US dollars) was greater compared tunities for the development of small and growth e b m to firms which had more capital. Ansari (2009) enterprises in agricultural sector in the fields of e c e D studied the factors influencing the recession of food production, food variety and safety, non-oil , 0 Agri- Bank’s projects. The results indicated that exports and, most importantly, creation of em - 4 5 - 1 the specifications of project executor, features ployment opportunities both directly and indi - 3 5 : of the project and bank investment risk were as - rectly. The climatic variety of the country provides ) 4 ( 6 , sociated with the recession of Keshavarzi small enterprises with a good opportunity to work t n Bank’s projects.
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