Effects of rural entrepreneurship on community development in Zambia

Abstract

Rural entrepreneurship plays a crucial role in fostering the development of rural communities and nations at large. This study aimed to investigate the role of rural entrepreneurship in delivering community development. The study employed a quantitative approach, in which a structured questionnaire containing four indicator variables identified from the literature was administered to 197 respondents drawn from entrepreneurs involved in agriculture, retail, building construction, transportation business and metal fabrication operating in the rural areas of Copperbelt province, Zambia. The data were analysed using exploratory factor analysis (EFA) and regression analysis. The EFA results revealed that entrepreneurship was explained by four factors: entrepreneurial characteristics, business conception, business realization and business operation. However, the regression analysis established that of the four factors explaining entrepreneurship, only two factors, entrepreneurial characteristics and business operation, were significant in predicting community development in Copperbelt rural areas. Overall, this paper reaffirms that entrepreneurship plays a critical role in rural community development, leading to improved living standards, employment opportunities, alleviation of poverty and reduced rural-urban migration. Rural entrepreneurship is an essential stimulant of economic growth in developing countries.