An Analytical Study of the Economic, Social, and Psychological Impacts of Micro- enterprises in Some Villages, Kafr El-Sheikh Governorate

Document Type : Original Article

Authors

Faculty of Agriculture, Kafr El Sheikh University

Abstract

The main objectives are to assess the impact of economic, social, and psychological outcomes of micro- enterprises on entrepreneurs in rural Kafr El-Sheikh Governorate, to investigate the determinants of the composite index of the total development impacts , and identifying major problems facing the micro-enterprise activities. Fifteen variables are postulated to be the determinants of the total development impact index. A questionnaire form is designed and a proportional stratified random sample is selected to collect the data from 365 entrepreneurs. The findings reveal that, micro enterprises have a positive impact on economic growth, standard of living; a significant impact of social capital such as social prestige, positive values. Besides, the participants hold positive satisfaction toward their communities. About 75,1% of the entrepreneurs fall in the intermediate and high categories of the total development composite variable. The fifteen independent variables combined explain 85.7 % of the total variance in the composite scores. Nine variables make significant contributions to the regression equation. They ranked according to their relative importance using Beta scores as fellow: Animal Ownership, full-time management, Living possession, problems intensity, community satisfaction, Agriculture land holding, satisfaction with enterprise operation, enterprise Investment value, and enterprise spatial size. The most frequently mentioned problems facing micro-enterprises are: Problems of selling products, complexity of obtaining a loan, lack of establishing exhibitions, Lack of training entrepreneur, Product price instability. The study recommends that government should play a vital role by giving entrepreneurs significant training and support, favorable environment which lead to success of entrepreneurship.

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