Entrepreneurship as a driver of rural women’s empowerment in Iran – Nature

Report on Entrepreneurship as a Driver for Rural Women’s Empowerment and the Sustainable Development Goals in Iran

Executive Summary

This report analyzes the role of entrepreneurship as a key driver for empowering rural women in Iran, directly contributing to the achievement of the Sustainable Development Goals (SDGs). Entrepreneurship creates pathways to self-sufficiency and sustainable development, aligning with SDG 5 (Gender Equality) and SDG 8 (Decent Work and Economic Growth). This study employed a quantitative survey of 393 rural women entrepreneurs in Fars Province to identify factors influencing their empowerment. The results indicate that entrepreneurial spirit and activities significantly enhance empowerment. Key influencing factors include entrepreneurial motivation, social capital, entrepreneurial knowledge, and social networks. These findings underscore the importance of targeted interventions to foster an environment where women-led enterprises can thrive, thereby advancing SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities). The report recommends educational programs focused on cognitive development (SDG 4) and the enhancement of social networks (SDG 17) as essential strategies to empower rural women entrepreneurs.

1. Introduction: Entrepreneurship as a Catalyst for Sustainable Development

1.1. Aligning Rural Women’s Empowerment with the SDGs

Entrepreneurship is a critical engine for economic growth and individual empowerment, particularly for women in rural areas who face significant barriers to economic participation. By providing a pathway to financial independence, women’s entrepreneurship directly supports several Sustainable Development Goals:

• SDG 5 (Gender Equality): It empowers women to overcome traditional gender roles, participate in decision-making, and achieve social mobility.
• SDG 8 (Decent Work and Economic Growth): It fosters job creation and stimulates local economies, as women often reinvest earnings into their families and communities.
• SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities): It provides a vital tool for poverty alleviation and reduces economic disparities for a historically marginalized group.

However, challenges such as limited access to resources, education, and networks hinder the full realization of this potential, necessitating a deeper understanding of the mechanisms of empowerment.

1.2. Multidimensional Empowerment and Key Influencing Factors

Empowerment is a multidimensional process encompassing psychological, cultural, political, and environmental aspects. For rural women, this involves not only economic activity but also challenging social norms and gaining control over their lives. This holistic view of empowerment is crucial for sustainable progress. This study focuses on two primary theoretical perspectives to understand this process:

1. Social Capital Theory: Social networks and relationships are vital for accessing resources, information, and support, especially in rural contexts. This aligns with SDG 17 (Partnerships for the Goals), highlighting the need for collaborative networks.
2. Cognitive Psychology: Factors such as motivation, knowledge, and entrepreneurial spirit shape an individual’s ability to recognize and act on opportunities. Developing these cognitive skills is central to SDG 4 (Quality Education).

By integrating these perspectives, this study provides a holistic framework for analyzing how individual capabilities and social structures interact to foster empowerment among rural women in Iran, contributing to a more inclusive and sustainable development model.

2. Research Methodology

2.1. Study Design and Population

A quantitative approach using a survey method was employed in Fars Province, Iran. The study population consisted of 3,033 women engaged in entrepreneurial activities within agricultural development specialized holding companies. These organizations are instrumental in providing microfinance and training, directly supporting economic empowerment and contributing to SDG 8 by fostering rural business development.

2.2. Sampling and Data Collection

A stratified random sampling method was used to select a representative sample of 393 participants from the counties of Marvdasht, Shiraz, and Estahban. Data were collected through questionnaires, which were validated for face validity and reliability through expert review and a pilot study. Informed consent was obtained from all participants, and the research adhered to ethical standards set by Shiraz University.

2.3. Data Analysis

Data were analyzed using SPSS25, SmartPLS3, and AMOS21 software. Confirmatory Factor Analysis (CFA) was used to validate the measurement model, while Structural Equation Modeling (SEM) was employed to identify the causal factors influencing the empowerment of rural women. The model’s goodness-of-fit was confirmed by multiple indices (Chi-square p-value = 0.14, RMSEA = 0.027, CFI = 0.960), ensuring the robustness of the findings.

3. Results and Analysis: Factors Influencing Empowerment

3.1. Demographic Profile of Rural Women Entrepreneurs

The demographic analysis revealed a diverse participant group. However, a key finding was the relatively low average level of education (approximately eight years). This highlights a significant barrier to achieving SDG 4 (Quality Education) and may limit the potential for entrepreneurial success. The varied family sizes and moderate participation in educational classes further indicate the complex interplay of social obligations and opportunities that shape women’s entrepreneurial journeys.

3.2. Regional Disparities in Empowerment

A comparative analysis revealed significant differences in empowerment levels across the three studied counties, underscoring the challenge of SDG 10 (Reduced Inequalities).

• Women entrepreneurs in Marvdasht County demonstrated significantly higher levels of cultural, psychological, political, and environmental empowerment compared to those in Shiraz and Estahban.
• The higher scores in Marvdasht suggest a more supportive entrepreneurial ecosystem, where women benefit from stronger community networks, greater satisfaction, and more active participation in decision-making.
• Notably, the higher environmental empowerment in Marvdasht indicates a strong sense of responsibility for sustainable practices, aligning with SDG 12 (Responsible Consumption and Production) and SDG 11 (Sustainable Cities and Communities).

These regional disparities highlight the need for context-specific policies to foster empowerment uniformly.

3.3. Causal Model of Empowerment

The SEM analysis identified the direct and indirect factors affecting women’s empowerment.

Factors Influencing Entrepreneurial Knowledge (SDG 4)

• Positive Influences: Supportive policies, entrepreneurial spirit, and entrepreneurial motivation were all found to significantly enhance women’s entrepreneurial knowledge.
• Negative Influence: Social networks had a negative effect, likely due to network closure, where dense, homogeneous networks limit exposure to new information and innovative practices. This suggests that while networks are important, diversity is key.

Factors Influencing Social Capital (SDG 17)

• Entrepreneurial spirit, motivation, and the breadth of social networks all had a significant positive impact on the development of social capital, reinforcing the importance of building collaborative and trust-based relationships.

Factors Influencing Entrepreneurship Development (SDG 8)

• A wide range of factors positively influenced business development, including entrepreneurial motivation, access to information networks, supportive policies, entrepreneurial knowledge, creativity, a favorable business environment, and social capital.

Factors Influencing Empowerment (SDG 5)

• Strongest Direct Effects: Entrepreneurial spirit and the level of entrepreneurship development had the most significant positive impacts on women’s empowerment.
• Other Significant Factors: Entrepreneurial motivation, entrepreneurial knowledge, social capital, and social networks also contributed positively and significantly to empowerment.

4. Conclusion: Advancing the SDGs through Rural Women’s Entrepreneurship

4.1. Summary of Key Findings

This study confirms that entrepreneurship is a powerful vehicle for the empowerment of rural women in Iran, creating a positive cycle of socio-economic development that aligns with multiple SDGs. Cognitive factors, particularly entrepreneurial spirit and motivation, are fundamental to this process. They drive the acquisition of knowledge (SDG 4), the development of social capital (SDG 17), and the growth of businesses (SDG 8), which collectively lead to greater empowerment (SDG 5). The success of women entrepreneurs in Marvdasht serves as a powerful model, demonstrating how a supportive ecosystem can foster all dimensions of empowerment, including environmental stewardship (SDG 12). However, significant regional disparities persist, posing a challenge to SDG 10 (Reduced Inequalities).

4.2. Policy Recommendations for Sustainable Impact

To leverage entrepreneurship for sustainable development, the following actions are recommended:

1. Enhance Educational Programs (SDG 4): Implement targeted training programs that build not only business skills but also cognitive capacities like resilience, creativity, and motivation.
2. Foster Diverse Social Networks (SDG 17): Promote initiatives that help women build diverse networks beyond their immediate communities to encourage innovation and prevent knowledge stagnation.
3. Implement Targeted Regional Policies (SDG 10): Develop context-specific strategies to address regional disparities. Replicate the successful support systems seen in Marvdasht in other counties to ensure equitable opportunities.
4. Strengthen Institutional Support (SDG 8 & 17): Ensure that policies provide tangible financial and non-financial resources and create an enabling business environment that addresses the structural barriers faced by women.
5. Promote Sustainable Practices (SDG 12): Integrate environmental and sustainability training into entrepreneurship programs to build on the link between empowerment and environmental consciousness, fostering resilient rural communities.

4.3. Limitations and Future Research

This study is limited by its cross-sectional design and geographical focus on Fars province. Future research should employ longitudinal designs to establish clearer causal relationships and conduct comparative studies across different socio-cultural contexts to assess the generalizability of these findings. Such research will further inform evidence-based policies aimed at creating a more inclusive, equitable, and resilient society through the empowerment of rural women entrepreneurs.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on entrepreneurship and the empowerment of rural women in Iran addresses several Sustainable Development Goals (SDGs) by focusing on economic, social, and environmental dimensions of sustainable development. The following SDGs are directly connected to the issues discussed:

• SDG 1: No Poverty. The article highlights entrepreneurship as a “pathway to financial independence” and a tool for creating “opportunities for self-sufficiency.” By engaging in income-generating activities, rural women can alleviate poverty for themselves and their families, directly contributing to the goal of ending poverty in all its forms.
• SDG 4: Quality Education. The study emphasizes the importance of “entrepreneurial knowledge,” “skills,” and “educational programs” for empowering rural women. It finds that entrepreneurial knowledge significantly impacts business development and recommends “offering educational programs” as an essential strategy, which aligns with the goal of ensuring inclusive and equitable quality education and promoting lifelong learning opportunities.
• SDG 5: Gender Equality. This is a central theme of the article. The research focuses explicitly on the “empowerment of rural women,” allowing them to “overcome the constraints of traditional gender roles” and challenge “long-standing societal norms.” It examines empowerment across psychological, cultural, and political dimensions, including women’s participation in decision-making, which is a core component of achieving gender equality.
• SDG 8: Decent Work and Economic Growth. The article identifies entrepreneurship as a “key driver of empowerment” and “economic and social growth.” It discusses how supporting women entrepreneurs fosters “self-employment,” “venture creation,” and “business success,” which contributes to sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
• SDG 12: Responsible Consumption and Production. The article introduces the concept of “environmental empowerment,” noting that empowered women entrepreneurs in the study felt “responsible for environmental issues” and exhibited “responsible behaviors in both environmental and entrepreneurial activities.” This connects to promoting sustainable business practices, such as “resource-efficient agricultural techniques,” which aligns with ensuring sustainable consumption and production patterns.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the detailed discussion in the article, several specific SDG targets can be identified as being directly relevant to the research findings and recommendations.

1. SDG 1: No Poverty

   • Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance.
     
     Explanation: The article discusses how entrepreneurship provides rural women with a “vital pathway to financial independence” and examines factors like access to “financial resources, including microcredit” and support from “specialized holding companies” that provide microfinance. This directly relates to ensuring women have equal rights and access to economic and financial resources.

2. SDG 4: Quality Education

   • Target 4.4: By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship.
     
     Explanation: The study finds that “entrepreneurial knowledge” has a significant positive effect on entrepreneurial development and empowerment. It explicitly recommends “offering educational programs” and “ongoing training in business skills, entrepreneurship, agricultural practices” to equip rural women with the necessary skills to start and sustain businesses.

3. SDG 5: Gender Equality

   • Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life.
     
     Explanation: The article measures “political empowerment” by assessing women’s “involvement in decision-making related to entrepreneurial activities, participation in civic matters, and efforts to improve conditions within their villages.” This directly aligns with the goal of enhancing women’s participation in economic and public decision-making.
   • Target 5.a: Undertake reforms to give women equal rights to economic resources, as well as access to ownership and control over land and other forms of property, financial services, inheritance and natural resources, in accordance with national laws.
     
     Explanation: The entire study is premised on empowering women through entrepreneurship, which involves creating and owning businesses. It discusses challenges such as “limited access to financial resources” and the role of supportive funds in providing microfinance, which are central to this target.

4. SDG 8: Decent Work and Economic Growth

   • Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services.
     
     Explanation: The article’s core focus is on rural entrepreneurship and the factors that influence it, such as “supportive policies,” “creativity,” “entrepreneurial motivation,” and access to “microfinance.” It analyzes the development of small businesses run by rural women, making this target highly relevant.
   • Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
     
     Explanation: The article promotes entrepreneurship as a means for rural women to achieve “self-employment,” “financial autonomy,” and “self-sufficiency.” This directly contributes to the goal of achieving productive employment for women, who often face significant barriers to economic participation.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article, being a quantitative study, mentions and implies several indicators that can be used to measure progress towards the identified SDG targets. These are derived from the variables and metrics used in the research.

1. Indicators for SDG 5 (Gender Equality)

   • Indicator for Target 5.5: The article measures “political empowerment” using a multi-item scale that includes questions on women’s “active involvement in decision-making related to entrepreneurial activities” and “participation in civic matters.” The mean scores for political empowerment across different counties (e.g., Marvdasht score of 38.84) serve as a direct quantitative indicator of women’s participation in local economic and public life.
   • Indicator for Target 5.a: The study’s population consists of “women engaged in entrepreneurial activities within agricultural development specialized holding companies.” The number of women starting and sustaining businesses, as well as their “business success,” serve as implied indicators of their access to and control over economic resources.

2. Indicators for SDG 4 (Quality Education)

   • Indicator for Target 4.4: The study directly measures women’s participation in skill development programs. Table 6, “Frequency distribution of entrepreneurial women in terms of attending entrepreneurial educational classes,” provides a clear indicator, showing that 52.7% of participants attended 1–5 classes. The variable “entrepreneurial knowledge” is also measured and used in the causal model, serving as an indicator of the acquisition of relevant skills.

3. Indicators for SDG 8 (Decent Work and Economic Growth)

   • Indicator for Target 8.3: The study analyzes “entrepreneurship development” as a key variable. This is measured through factors related to business growth and success. The number of rural women entrepreneurs in the study population (3,033) and the sample (393) can be used as a baseline indicator for the prevalence of micro- and small-sized enterprises run by women in the region.

4. Indicators for SDG 12 (Responsible Consumption and Production)

   • Indicator for Sustainable Practices: The article measures “environmental empowerment” through a questionnaire assessing whether women “feel responsible for environmental issues” and engage in “responsible behaviors.” The mean scores on this dimension (e.g., 34.48 in Marvdasht) can serve as an indicator of the adoption of sustainable principles in their entrepreneurial activities.

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

Source: nature.com