Factors empowering members of rural cooperatives to create jobs and entrepreneurship (Case Study: Ghale no)

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1 International Research Journal of Applied and Basic Sciences 2015 Available online at ISSN X / Vol, 9 (8): Science Explorer Publications Factors empowering members of rural cooperatives to create jobs and entrepreneurship (Case Study: Ghale no) Haman Golzari Amin* 1, Tuba Amir Azodi 2 1. Master - Agricultural Engineering - Agricultural Management 2. Associate Professor, Islamic Azad University Eslamshahr (supervisor) * Corresponding Author hgamin116@gmail.com ABSTRECT: Strengthening and expanding the rural cooperatives in the agricultural sector is a driving force in the state. The present study aims to find ways of empowering members of rural cooperatives to create entrepreneurship. The study is based on the objective. And the survey is to collect data. The population is 1,000 active members of the rural cooperative. 278 people have been determined using Cochran formula. Data was collected using a questionnaire which has two parts. The first section includes some common questions and second part includes some question about empowering Members to entrepreneurship. We use Cronbach's alpha coefficient equal to 70.5% calculation. The scale is ordinal range. To determine the correlation between entrepreneurship and the creation of enabling members range in rank has become an overnight break. We used Pearson correlations to determine the rate. In this study, the affecting factors empowering members of rural cooperatives in entrepreneurship include: the independence, achievement, responsibility, foresight, commitment and loyalty, risk-taking, internal locus of control, creativity and innovation, participation in decision-making education, financial resources, authority and encouragement that have a direct and significant relationship with entrepreneurship. Keywords: rural cooperative, empowerment, job, entrepreneurship INTRODUCTION At the same time, only the factors of production, including natural resources, manpower, water, land, capital, and weather conditions together can t lead to the development of agriculture and rural cooperatives. These factors are necessary but not sufficient. The having innovative, creative, entrepreneurial members and innovation will lead to the development of rural cooperatives. They are there to increase the efficiency of the facility. In other words we can say that entrepreneurship and innovation are factors that lead to the survival and effectiveness of the organization. So every organization needs to find innovative and entrepreneurial approach to improve efficiency, effectiveness and flexibility. Kuratko et al (2005) argue that entrepreneurial behavior in all activities related to the discovery, evaluation and exploitation of an entrepreneurial opportunity that is done by the members of the organization. Entrepreneurship is an economic issue but is strictly affected by political factors, social and cultural rights. Entrepreneurship is a character trait. Drucker (1985) argues that entrepreneurship is a behavioral pattern. This behavior can be taught. They learn how to have entrepreneurial behavior. People who their entrepreneurial characteristics has been motivated, make an attempt for their entrepreneurial behaviors. For example, starting business, creating a new career and eventually registering their invention. Soudmand and Nasrzadeh (2007): Empowering is process of enabling individuals in a community or a social system. In other words, empowerment means creating conditions in which people can do their work motivated and successfully. Removing the barriers to growth, empowerment, encouraging commitment to the goals, encouraging risk-taking, creativity and innovation, and enabling individuals to solve problems, increase accountability and eliminate fear. Research literature Entrepreneurship: Entrepreneurship is wide range of innovative activities, along with the creation of innovative new ideas, exploring opportunities and the risks. (Nasution & et.at, 2011, p.337)

2 Rural Cooperative: Rural Cooperatives is important tools for economic and social participation of rural communities that are in rural areas and are diverse and have different functions. Therefore consists of rural households with small fundraising members that can be active in the field of finance to rural households. (Shoukat Fadaei, 2010, p 285), or in other words, cooperative institution that abilities, intellectual, physical, poor capital of people that are not able to portrayals collects and puts them in the promotion of the welfare of the members of the job. Empowerment: Empowerment as a term that was introduced in the 1980s and 1990s has been the focus of many researchers and practitioners. (Mansourian and Niazi, 2006) is the process of removing barriers to growth, encourage commitment to the goals of persuasion risk, creativity and innovation and enable people to solve problems, increase accountability and eliminate fear. Empowering is ending anything that causes stunted growth, freedom, confidence, participation and cooperation (Aqlmnd and Akbari, 2005). In general, studies in the field of rural cooperatives on the importance of these companies focused on rural and agricultural development goals. Empowering prepares the situation to expand the development of human resources and their efficiency. Many studies have been done on the relationship between organizational capacity and effectiveness of the organization has demonstrated (Kollias & Chabet, 2000). In a study titled "Effective Strategies for Empowering health expert at the University of Medical Sciences" Five-effective solution in terms of enabling freedom, the effective management of human resources, the motivation, self-management and promote organizational learning strategies are most effective in enabling experts to freedom operation and disposal expressed (Jafari et al, 2008). In a study titled "The determination and measurement of factors affecting human resource empowerment electricity distribution Company in the North West of Tehran," concluded that the employees feel that they have more choice of work more satisfied. It can be excellent employees. Also improve the educational, leadership style appropriate, encourage staff, utilizing teamwork, effective communication, job enrichment and increased levels of participation would improve the motivation of employees (Mohseni, 2007). According to the study entitled "Assessment of ways of empowering employees Birjand University" devolution clearly provides for the Empowerment of employees, performance-based bonuses to help foster empowerment, job enrichment capacity of the actuality Reach potential to empower individuals to provide and facilitate collaborative management process (Mohammadi, 2002). Other studies suggest the involvement, job satisfaction, motivation, education, information technology, information sharing and empowerment, there is a significant relationship. Pezeshki Rad et al (2013) in a study titled "Strategies for Empowering national and provincial co-production professionals:" list empowerment strategies as follows: Creating briefings to clarify the duties, powers and responsibilities of the cooperative. Providing training in the principles, models and techniques for planning, production managers and union officials. Providing encouragement and incentives to increase participation of cooperative members. Ansari (2002) in a study of rural cooperatives declared the process of decision making as the most important factor in the success and empowerment of rural cooperative management. Management and decisionmaking in rural cooperatives are very important. Companies member are capitalists in Cooperatives rural. They must have the highest participation in the cooperative. Counter on research titled "Change Unions innovation in the United States" in 2007 came to the conclusion that in order to survive the economic crisis and the rise of large firms hire labor should be major changes in innovation. Kanter suggests that structural changes in the way the American economy without disfiguring and ugly for society and the environment will follow. Thus, a modern innovation to empower and rescue the ailing economy, society and environment are necessary. The purpose of the research The overall objective of this research was to enable the members of rural cooperatives in promoting entrepreneurship. Therefore, this study aims to examine ways of empowering members of rural cooperatives. Secondary objectives are: Definition and characteristics of rural cooperatives formidable; Determine the winner of the empowerment of entrepreneurship in rural cooperatives; Developing strategies for empowering the rural cooperative entrepreneurship. The rural cooperatives have large proportion in the transition from chaotic conditions and to achieve a dynamic economy. Entrepreneurship is one of the fundamental pillars for growth and development in the agricultural sector. Entrepreneurship is important for the following reasons: Entrepreneurship leads to employment in the agricultural sector. New products, new services, new procedures and policies to address the problems caused. Entrepreneur creates the dynamics of rural cooperatives.(golzari Amin, 2014, p 7) 1349

3 MATERIALS AND METHODS Qualitative and quantitative development community is due to the all decision-making and decision-making that is based on scientific studies (khaki, 2008, p 11). The purpose of this study is to explore ways to empower rural cooperative members. This study used a quantitative research. The results of this study can be used to create entrepreneurship, strengthen the cooperative's future planning for entrepreneurship. So this research is applied. It is hypothesized that a direct and significant relationship between entrepreneurship and the creation of enabling members there. The population is 1,000 people. These people are members of rural cooperatives. Cochran's formula was used to determine sample. The population of all the members of co-operatives in rural New Castle, which in 2014 consisted of 1,000 people and four groups of farmers, Ranchers, gardeners and vegetable growers are divided, according to the formula 278 people in ways stratified simple random sample is selected. The sample number is calculated according to the formula. A questionnaire was used to collect data. The questionnaire contains 21 questions that are presented in Table 1. The questionnaire contains 21 questions about empowering members of rural cooperatives for entrepreneurship. SPSS and Excel software was used to summarize and categorize data. Items Table1. Empowerment of rural cooperatives to create jobs 1 Cooperative members have a sense of commitment and loyalty to the union? 2 To what extent is willing to do the work and activities of high standards for the success of your union? 3 Cooperative members how their successes and failures attributed to the co-op? 4 5 To what extent the members of the cooperative are inclined to risk-taking and risktaking? To what extent is there a need for independence of the people and the members of the cooperative? Factor Commitment and Loyalty Achievement Internal locus of control Risk 6 To what extent is there a sense of responsibility in co-op member? Sense of responsibility Foresight and prospective members of the cooperative, to what extent? Futures 8 Members often speak to each other about new ideas? Creativity and Innovation 9 How to care for your new business in a co-op? Creativity and Innovation 10 The cooperative provides the mechanism to participate in joint decision-making on a Participation in particular project? decision-making 11 Cooperative members will participate in management decisions? Participation in decision-making 12 For cooperative management decisions also uses the ideas of the members? Participation in decision-making 13 Ample opportunity for learning and promotion of cooperative entrepreneurship in there? Education 14 Courses are held in co-op? Education 15 Cooperative encourages people to take advantage of new ways of working? Education 16 To what extent the members of the cooperative are empowered to advance their cause? Delegation 17 Financial support from the government budget and appropriate co-op? Funds 18 Whether sufficient resources are available to co-op? Funds 19 Do you have the resources to be cooperative? Funds 20 Are cooperatives by the government to promote the deal is? Encourage 21 Be members of the co-operative entrepreneurship, to what extent do you see? Empowerment 1350

4 Using Cronbach's alpha coefficient of reliability was evaluated and its value is equal to 70.5% respectively. Table 2. Cronbach's alpha values Section of the questionnaire Number Cronbach's alpha Empowerment % RESULTS As the literature on the empowerment of rural cooperative members in entrepreneurship are: commitment and loyalty, achievement, internal locus of control, risk-taking, independence, responsibility, foresight, creativity and innovation, participation in decision-making, training, delegating, encouraging organizations and others. Table 3 shows the correlation coefficients between the variables and the degree of significance. Pearson's correlation coefficient was used to determine the test Table 3. Correlation coefficients with an enabler of entrepreneurship, using Pearson Significant First variable second variable The correlation coefficient degree of correlation Delegation entrepreneurship entrepreneurship Encourage entrepreneurship Education entrepreneurship Participation in decision-making entrepreneurship Futures entrepreneurship Funds entrepreneurship Achievement entrepreneurship Internal locus of control entrepreneurship Creativity and Innovation entrepreneurship Risk entrepreneurship Commitment and Loyalty entrepreneurship sense of empowerment entrepreneurship Table 4. Statistics, regression analysis, stepwise multiple regression model fitted R Square Adjusted R Square Std.Error of the Estimate Durbin Watson source changes Effects regression The remaining Sum Table 5. The stepwise multiple regression analysis of variance Sum of squares degrees of freedom mean-square F Sig Table 6 shows the statistics of the variables entered in the regression model. Here we use the stepwise regression. Table 6. Statistics of the variables entered in the stepwise multivariate regression model variable name B Std.B Beta T Sig Intercept Delegation Prospective internal locus of control Funds According to Table 6, the coefficients of the regression equation in five steps as follows: Y = (delegating) (independence) (prospective) (internal locus) (funds) It is also the standard equation: Y = (delegating) (independence) (prospective) (internal locus) (funds) 1351

5 In the first step the first variable coming to the equation, is the variable of delegation. The calculation shows that this variable has the most important effect on dependent variable which is variable of creation entrepreneurship for members of rural cooperative. Beta value is If the standard deviation of this variable is changed a single one, standard deviation of depend variable changes unit. Another variable in the equation is the second step, in the second step the second variable coming the equation is the independence. Beta value is If the standard deviation of this variable is changed a single one, standard deviation of depend variable changes unit. Third variable in the equation is the future, in the Third step the third variable coming the equation is the variable of Prospective. Beta value is If the standard deviation of this variable is changed a single one, standard deviation of depend variable changes unit. In the fourth step, the variable in the equation is the internal control. Beta value is If the standard deviation of this variable is changed a single one, standard deviation of depend variable changes unit. The fifth step is variable resources into the equation. Beta value is If the standard deviation of this variable is changed a single one, standard deviation of depend variable changes unit. CONCLUSIONS Based on the findings, the following factors are useful in creating jobs and empowering members of rural cooperatives: Delegate Futures Internal locus of control Funds.(Golzari Amin, 2014, p 80) Research Jafari and colleagues (2008), Mohseni (2007) and Mohammadi (2002) on freedom of action and authority on entrepreneurship, empowerment of members in accordance and consistent with our results. Research Tong and Yu (1998), with the result that funds research in entrepreneurship has a positive impact on the empowerment of members, matches. Members are able to participate in decision-making cooperative development. Member participation in cooperative enterprises is three outcomes for this type: would be to align the goals and aspirations of the members of the cooperative; members as well as co-operate in the achievement of mutual benefit; develop a sense of mutual dependence between members of a result to follow. Members of cooperatives, cooperative unions from themselves and they try to solve their problems. The main objected of the cooperative participation of members in activities to reduce decision-making executives. Most Active Users in the total time will be needed for entrepreneurship emerges. Individuals or members can participate in the shadow of its activities in line with the objectives of cooperative initiatives with cooperatives and cooperative cause. Rural cooperatives to develop the agricultural sector could be for the following reasons: Most suitable system for the collection and use of the potential small capital investments for new business startup; The employer are members of the cooperative. It can therefore be concluded that the objectives of the cooperative members is the same objectives. The participation of members of the cooperative and monitor the performance of members of the social and economic costs are reduced. Culture and strengthening cooperation in community development and entrepreneurship gives a reassuring guarantee. Co-field activities provide to every one of his achievements and abilities to the test and offer to others. offers Today, education is a key infrastructure cooperative system. Most members are not cooperative enough awareness about cooperatives. To expand cooperative members should understand the concept of cooperation. Before entrepreneurial personality is a factor, a factor in the behavior and policies of entrepreneurship education in cooperative enterprises, universities and training centers to train people to be entrepreneurs. Entrepreneurship and Innovation strengthen the sense of independence, achievement, sense of responsibility and foresight. These factors are in human. But can they be strengthened by education. Participation in cooperative affairs and members of the cooperative control (authority) has continually been the exact cause of the rapid development of rural cooperatives. Users will be involved with the cooperative policy, 1352

6 program, principles, managers and technicians committed capital and financial resources, and the monitoring and control of the main components of success are accurate and effective, are. Cooperative policies can be self-managed cooperatives, create a conductive environment for the development of cooperatives, strengthening technical capacities, development of financial cooperatives, privatization, focusing on values, delegation of authority, creating an integrated mechanism of cooperatives, development, support of non-governmental organizations, focusing on Board independence and promotion of cooperatives, social cooperatives and pointed. REFERENCES Ansari H Research on rural cooperatives of Iran (case study of rural cooperative Sirius's), my publisher Blues. Aqelmand S, Akbari F management structure, with the creation of the third international conference on Management. Chabet JC, Kollias P 'The impact of empowerment on customer contact employees' roles in service organization', Journal of Service Research, 3 (1), pp Drakr C Managing in the Next Society, translated by GH Khanqaei, cross-cultural organizations. Golzari Amin H Factors affecting the promotion of entrepreneurship and innovation in rural cooperative. Islamic Azad University Eslamshahr. Jafari A, et al Impact of healthcare solutions expert, University of Medical Sciences, 10 (2), pp Khaki Gh Research Methodology and approach the dissertation, Cultural Center tact Publications, Tehran. Mansouryan A, Nyazi HR The impact of employee empowerment in management and corporate planning. Human Resource Development Conference, 4 and 5 December, Tehran. Mohmadi M access solutions, empowering employees at the University of Birjand, thesis, Tarbiat Modarres University. Mohseni A defining and measuring factors affecting human resource capacity in the power distribution company North -West of Tehran. The ability to manage Tehran University. Nasution Hanny N, Mavondo Felix T, Margaret Jekanyika M, Nelson Oly N " Entrepreneurship: Its relationship with market orientation and learning orientation and as antecedents to innovation and customer value", journal of Industrial Marketing Management, Vol. 4 0, p Pezeshki Rad GR Strategies for strengthening national and provincial co-production professionals, pp Shokat fadai M, Khalili M Agricultural Policy (Agricultural Science), published by PNU. Soudmand R, Nasrzadeh M Implementation of human resource management, performance management, Third International Conference, 5-6 Jevon, Tehran. Tang HK, Yeo KT Technology, entrepreneurship and national development: Lesson from Singapore, International of Technol ogy Management, 10 (7):