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Investigating the Causes of Entrepreneurs Failure to Start-up Greenhouse Business in Isfahan Province, Iran

Year 2021, Volume: 18 Issue: 2, 187 - 196, 01.05.2021
https://doi.org/10.33462/jotaf.704880

Abstract

Despite the impact of entrepreneurships on economic development, it has not received much attention over the last few decades. Most studies in the field of entrepreneurship have been based on the experiences of successful entrepreneurs. Although the success and failure of entrepreneurs are two sides of the same coin, studying the causes of entrepreneurial failure provides us with much more important information for analyzing the entrepreneurial ecosystem in a country. Therefore, by examining the failure of entrepreneurs, the entrepreneurial ecosystem can be changed to improve the conditions for future success of entrepreneurs. The present study examines factors caused to failure start-up greenhouse business by licensed entrepreneurs in province of Isfahan located at central part of Iran. This study considers population who obtained license to start greenhouse business but failed to do so at last. This study applied qualitative research technique and related data were collected through semi-structured telephone interviews with totally 450 interviewee and 264 of them participated in the study. To analysis the collected data, the structural content analysis technique of grounded theory was applied. Due to importance of factors, vocabulary counting technique was applied. As a result, 575 Barriers are expressed by entrepreneurs. At the open coding stage, the extracted phrases are integrated in 19 terms of meaningful expressions by integrating the same items and removing repetitive cases. At the axial coding stage, 19 integrated concepts are obtained. Subsequently, the extracted phrases create six main factors. At the selective coding stage, the entrepreneurs' basic barriers are categorized into three categories: Human Barriers, Economic barriers, Infrastructure facilities and supportive policies. This study well revealed that weak infrastructure facilities, poor supportive system, economy barriers and problems with human resource barriers respectively had powerful deterrent factors which caused license holders to give up starting a greenhouse business.



Supporting Institution

The authors did not receive any funding for this study.

Thanks

We are thankful for Agricultural and natural resources engineering Organization of Isfahan extracted greenhouse statistics from the information available in their file and provided it to research team.

References

  • Al-Shami, S., Al Mamun, A., Sidek, S., & Rashid, N. (2019). Causes of failure among Malaysian female entrepreneurs. Qualitative Research in Financial Markets. Bazargan, A. (2019). Introduction to qualitative research methods and mixed conventional approach in the Behavioral Sciences. In. Tehran: Didar. Bruno, A. V., Leidecker, J. K., & Harder, J. W. (1987). Why firms fail. Business Horizons, 30(2), 50-58. Bruno, A. V., McQuarrie, E. F., & Torgrimson, C. G. (1992). The evolution of new technology ventures over 20 years: Patterns of failure, merger, and survival. Journal of business venturing, 7(4), 291-302. Cannon, M. D., & Edmondson, A. C. (2001). Confronting failure: Antecedents and consequences of shared beliefs about failure in organizational work groups. Journal of Organizational Behavior: The International Journal of Industrial, Occupational and Organizational Psychology and Behavior, 22(2), 161-177. Cannon, M. D., & Edmondson, A. C. (2005). Failing to learn and learning to fail (intelligently): How great organizations put failure to work to innovate and improve. Long range planning, 38(3), 299-319. Cardozo, R., & Borchert, P. (2004). The disappearance of business. online], http://www. babson. edu/entrep/fer/BABSON2003/II/II-P2/Chapter1. htm. Castrogiovanni, G. J. (1996). Pre-startup planning and the survival of new small businesses: Theoretical linkages. Journal of management, 22(6), 801-822. Chell, E., Haworth, J., & Brearley, S. (1991). The entrepreneurial personality (Vol. 16): London: Routledge. Cooper, A. C., Gimeno-Gascon, F. J., & Woo, C. Y. (1994). Initial human and financial capital as predictors of new venture performance. Journal of business venturing, 9(5), 371-395. Corbin, J., & Strauss, A. (2014). Basics of qualitative research: Techniques and procedures for developing grounded theory: Sage publications. Corbin, J. M., & Strauss, A. (1990). Grounded theory research: Procedures, canons, and evaluative criteria. Qualitative sociology, 13(1), 3-21. Elyasi, M., & Notash. (2011). Identifying the Roots of Failure of Iranian Skilled Entrepreneurs, A Discursive Narrative View ,. the Journal of Entrepreneurship Development, 4(6), 131-149. Ghambarali, R., & Rostami, F. (2015). Identifying Challenges Faced by Women Entrepreneurs of Kermanshah Province. Journal of Entrepreneurship in Agriculture, 2(1), 1-17. Hansen, E. L. (1995). Entrepreneurial networks and new organization growth. Entrepreneurship theory and practice, 19(4), 7-19. Hodgetts, R. M., & Kuratko, D. F. (2001). Entrepreneurship: A contemporary approach: South-Western/Thomson Learning. Khaton Abadi, A., & Amini, A. (1996). Management and principles of sustainable agriculture. Paper presented at the 4th Congress of Natural Sciences based on optimal energy efficiency of agriculture and Plant Breeding., Isfahan. Longenecker, C. O., Simonetti, J. L., & Sharkey, T. W. (1999). Why organizations fail: the view from the front-line. Management Decision, 37(6), 503-513. Markley, D., & Dabson, B. (2008). Creating a System of Support for Entrepreneurs and Small Businesses in Kentucky. A report to the Mountain Association for Community Economic Development. Online. http://www. maced. org/files/entrepreneurshipreport-web. pdf. Najafi, B., & Safa, L. (2014). An Investigation of Entrepreneurial Home Businesses and Obstacles and Challenges for their Development in Rural Areas. Agricultural Entrepreneurship Journal, 1(2), 61-73. Nonaka, I., & Takeuchi, H. (1996). The knowledge-creating company: How Japanese companies create the dynamics of innovation. Long range planning, 4(29), 592. Notash, H. (2014). Developing a Framework of Entrepreneurial Learning from Failures for Iranian Habitual Entrepreneurs: A Process Approach Journal of Entrepreneurship Development, 4(6), 131-150. Puppis, M. (2019). Analyzing talk and text I: Qualitative content analysis. In The Palgrave handbook of methods for media policy research (pp. 367-384): Springer. R Bellu, R. (1993). Task role motivation and attributional style as predictors of entrepreneurial performance: Female sample findings. Entrepreneurship & Regional Development, 5(4), 331-334. Sheppard, J. P., & Chowdhury, S. D. (2005). Riding the wrong wave: Organizational failure as a failed turnaround. Long range planning, 38(3), 239-260. Sitkin, S. B. (1992). Learning through failure: The strategy of small losses. Research in organizational behavior, 14, 231-266. Stokes, D., & Blackburn, R. (2002). Learning the hard way: the lessons of owner-managers who have closed their businesses. Journal of small business and enterprise development, 9(1), 17-27. Valentinov, V. (2007). Why are cooperatives important in agriculture? An organizational economics perspective. Journal of institutional Economics, 3(1), 55-69. Walsh, G. S., & Cunningham, J. A. (2017). Regenerative failure and attribution. International Journal of Entrepreneurial Behavior & Research. Whetten, D. A. (1980). Organizational Decline: A Neglected Topic in Organizational Science1. Academy of Management review, 5(4), 577-588. Wiklund, J., & Shepherd, D. A. (2001). INTENTIONS AND GROWTH: THE MODERATING ROLE OF RESOURCES AND OPPORTUNITIES. Paper presented at the Academy of management Proceedings. Williamson, O. E. (1985). The economic institutions of capitalism: firms, markets, relational contracting: Free Press. Zacharakis, A. L., Meyer, G. D., & DeCastro, J. (1999). Differing perceptions of new venture failure: a matched exploratory study of venture capitalists and entrepreneurs. Journal of Small Business Management, 37(3), 1.

Investigating the Causes of Entrepreneurs Failure to Start-up Greenhouse Business in Isfahan Province, Iran

Year 2021, Volume: 18 Issue: 2, 187 - 196, 01.05.2021
https://doi.org/10.33462/jotaf.704880

Abstract

Despite the impact of entrepreneurships on economic development, it has not received much attention over the last few decades. Most studies in the field of entrepreneurship have been based on the experiences of successful entrepreneurs. Although the success and failure of entrepreneurs are two sides of the same coin, studying the causes of entrepreneurial failure provides us with much more important information for analyzing the entrepreneurial ecosystem in a country. Therefore, by examining the failure of entrepreneurs, the entrepreneurial ecosystem can be changed to improve the conditions for future success of entrepreneurs. The present study examines factors caused to failure start-up greenhouse business by licensed entrepreneurs in province of Isfahan located at central part of Iran. This study considers population who obtained license to start greenhouse business but failed to do so at last. This study applied qualitative research technique and related data were collected through semi-structured telephone interviews with totally 450 interviewee and 264 of them participated in the study. To analysis the collected data, the structural content analysis technique of grounded theory was applied. Due to importance of factors, vocabulary counting technique was applied. As a result, 575 Barriers are expressed by entrepreneurs. At the open coding stage, the extracted phrases are integrated in 19 terms of meaningful expressions by integrating the same items and removing repetitive cases. At the axial coding stage, 19 integrated concepts are obtained. Subsequently, the extracted phrases create six main factors. At the selective coding stage, the entrepreneurs' basic barriers are categorized into three categories: Human Barriers, Economic barriers, Infrastructure facilities and supportive policies. This study well revealed that weak infrastructure facilities, poor supportive system, economy barriers and problems with human resource barriers respectively had powerful deterrent factors which caused license holders to give up starting a greenhouse business.

References

  • Al-Shami, S., Al Mamun, A., Sidek, S., & Rashid, N. (2019). Causes of failure among Malaysian female entrepreneurs. Qualitative Research in Financial Markets. Bazargan, A. (2019). Introduction to qualitative research methods and mixed conventional approach in the Behavioral Sciences. In. Tehran: Didar. Bruno, A. V., Leidecker, J. K., & Harder, J. W. (1987). Why firms fail. Business Horizons, 30(2), 50-58. Bruno, A. V., McQuarrie, E. F., & Torgrimson, C. G. (1992). The evolution of new technology ventures over 20 years: Patterns of failure, merger, and survival. Journal of business venturing, 7(4), 291-302. Cannon, M. D., & Edmondson, A. C. (2001). Confronting failure: Antecedents and consequences of shared beliefs about failure in organizational work groups. Journal of Organizational Behavior: The International Journal of Industrial, Occupational and Organizational Psychology and Behavior, 22(2), 161-177. Cannon, M. D., & Edmondson, A. C. (2005). Failing to learn and learning to fail (intelligently): How great organizations put failure to work to innovate and improve. Long range planning, 38(3), 299-319. Cardozo, R., & Borchert, P. (2004). The disappearance of business. online], http://www. babson. edu/entrep/fer/BABSON2003/II/II-P2/Chapter1. htm. Castrogiovanni, G. J. (1996). Pre-startup planning and the survival of new small businesses: Theoretical linkages. Journal of management, 22(6), 801-822. Chell, E., Haworth, J., & Brearley, S. (1991). The entrepreneurial personality (Vol. 16): London: Routledge. Cooper, A. C., Gimeno-Gascon, F. J., & Woo, C. Y. (1994). Initial human and financial capital as predictors of new venture performance. Journal of business venturing, 9(5), 371-395. Corbin, J., & Strauss, A. (2014). Basics of qualitative research: Techniques and procedures for developing grounded theory: Sage publications. Corbin, J. M., & Strauss, A. (1990). Grounded theory research: Procedures, canons, and evaluative criteria. Qualitative sociology, 13(1), 3-21. Elyasi, M., & Notash. (2011). Identifying the Roots of Failure of Iranian Skilled Entrepreneurs, A Discursive Narrative View ,. the Journal of Entrepreneurship Development, 4(6), 131-149. Ghambarali, R., & Rostami, F. (2015). Identifying Challenges Faced by Women Entrepreneurs of Kermanshah Province. Journal of Entrepreneurship in Agriculture, 2(1), 1-17. Hansen, E. L. (1995). Entrepreneurial networks and new organization growth. Entrepreneurship theory and practice, 19(4), 7-19. Hodgetts, R. M., & Kuratko, D. F. (2001). Entrepreneurship: A contemporary approach: South-Western/Thomson Learning. Khaton Abadi, A., & Amini, A. (1996). Management and principles of sustainable agriculture. Paper presented at the 4th Congress of Natural Sciences based on optimal energy efficiency of agriculture and Plant Breeding., Isfahan. Longenecker, C. O., Simonetti, J. L., & Sharkey, T. W. (1999). Why organizations fail: the view from the front-line. Management Decision, 37(6), 503-513. Markley, D., & Dabson, B. (2008). Creating a System of Support for Entrepreneurs and Small Businesses in Kentucky. A report to the Mountain Association for Community Economic Development. Online. http://www. maced. org/files/entrepreneurshipreport-web. pdf. Najafi, B., & Safa, L. (2014). An Investigation of Entrepreneurial Home Businesses and Obstacles and Challenges for their Development in Rural Areas. Agricultural Entrepreneurship Journal, 1(2), 61-73. Nonaka, I., & Takeuchi, H. (1996). The knowledge-creating company: How Japanese companies create the dynamics of innovation. Long range planning, 4(29), 592. Notash, H. (2014). Developing a Framework of Entrepreneurial Learning from Failures for Iranian Habitual Entrepreneurs: A Process Approach Journal of Entrepreneurship Development, 4(6), 131-150. Puppis, M. (2019). Analyzing talk and text I: Qualitative content analysis. In The Palgrave handbook of methods for media policy research (pp. 367-384): Springer. R Bellu, R. (1993). Task role motivation and attributional style as predictors of entrepreneurial performance: Female sample findings. Entrepreneurship & Regional Development, 5(4), 331-334. Sheppard, J. P., & Chowdhury, S. D. (2005). Riding the wrong wave: Organizational failure as a failed turnaround. Long range planning, 38(3), 239-260. Sitkin, S. B. (1992). Learning through failure: The strategy of small losses. Research in organizational behavior, 14, 231-266. Stokes, D., & Blackburn, R. (2002). Learning the hard way: the lessons of owner-managers who have closed their businesses. Journal of small business and enterprise development, 9(1), 17-27. Valentinov, V. (2007). Why are cooperatives important in agriculture? An organizational economics perspective. Journal of institutional Economics, 3(1), 55-69. Walsh, G. S., & Cunningham, J. A. (2017). Regenerative failure and attribution. International Journal of Entrepreneurial Behavior & Research. Whetten, D. A. (1980). Organizational Decline: A Neglected Topic in Organizational Science1. Academy of Management review, 5(4), 577-588. Wiklund, J., & Shepherd, D. A. (2001). INTENTIONS AND GROWTH: THE MODERATING ROLE OF RESOURCES AND OPPORTUNITIES. Paper presented at the Academy of management Proceedings. Williamson, O. E. (1985). The economic institutions of capitalism: firms, markets, relational contracting: Free Press. Zacharakis, A. L., Meyer, G. D., & DeCastro, J. (1999). Differing perceptions of new venture failure: a matched exploratory study of venture capitalists and entrepreneurs. Journal of Small Business Management, 37(3), 1.
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Details

Primary Language English
Journal Section Articles
Authors

Masoud Ramezanı This is me 0000-0002-1941-3759

Abdolhamid Papzan 0000-0002-7159-899X

Publication Date May 1, 2021
Submission Date March 16, 2020
Acceptance Date February 10, 2021
Published in Issue Year 2021 Volume: 18 Issue: 2

Cite

APA Ramezanı, M., & Papzan, A. (2021). Investigating the Causes of Entrepreneurs Failure to Start-up Greenhouse Business in Isfahan Province, Iran. Tekirdağ Ziraat Fakültesi Dergisi, 18(2), 187-196. https://doi.org/10.33462/jotaf.704880
AMA Ramezanı M, Papzan A. Investigating the Causes of Entrepreneurs Failure to Start-up Greenhouse Business in Isfahan Province, Iran. JOTAF. May 2021;18(2):187-196. doi:10.33462/jotaf.704880
Chicago Ramezanı, Masoud, and Abdolhamid Papzan. “Investigating the Causes of Entrepreneurs Failure to Start-up Greenhouse Business in Isfahan Province, Iran”. Tekirdağ Ziraat Fakültesi Dergisi 18, no. 2 (May 2021): 187-96. https://doi.org/10.33462/jotaf.704880.
EndNote Ramezanı M, Papzan A (May 1, 2021) Investigating the Causes of Entrepreneurs Failure to Start-up Greenhouse Business in Isfahan Province, Iran. Tekirdağ Ziraat Fakültesi Dergisi 18 2 187–196.
IEEE M. Ramezanı and A. Papzan, “Investigating the Causes of Entrepreneurs Failure to Start-up Greenhouse Business in Isfahan Province, Iran”, JOTAF, vol. 18, no. 2, pp. 187–196, 2021, doi: 10.33462/jotaf.704880.
ISNAD Ramezanı, Masoud - Papzan, Abdolhamid. “Investigating the Causes of Entrepreneurs Failure to Start-up Greenhouse Business in Isfahan Province, Iran”. Tekirdağ Ziraat Fakültesi Dergisi 18/2 (May 2021), 187-196. https://doi.org/10.33462/jotaf.704880.
JAMA Ramezanı M, Papzan A. Investigating the Causes of Entrepreneurs Failure to Start-up Greenhouse Business in Isfahan Province, Iran. JOTAF. 2021;18:187–196.
MLA Ramezanı, Masoud and Abdolhamid Papzan. “Investigating the Causes of Entrepreneurs Failure to Start-up Greenhouse Business in Isfahan Province, Iran”. Tekirdağ Ziraat Fakültesi Dergisi, vol. 18, no. 2, 2021, pp. 187-96, doi:10.33462/jotaf.704880.
Vancouver Ramezanı M, Papzan A. Investigating the Causes of Entrepreneurs Failure to Start-up Greenhouse Business in Isfahan Province, Iran. JOTAF. 2021;18(2):187-96.