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Volume 38, Issue 3 (2023)
GeoRes 2023, 38(3): 287-298 |
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Received: 2023/05/26 | Accepted: 2023/07/3 | Published: 2023/07/28
Received: 2023/05/26 | Accepted: 2023/07/3 | Published: 2023/07/28
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Momenzadeh S, Ghadiri M, Faraji Sokbar H, Torkashvand Z, Khorasani M. Small and Medium Businesses in the Shemiranat Tourist villages. GeoRes 2023; 38 (3) :287-298
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1- Department of Human Geography and Planning, Faculty of Geography, University of Tehran, Tehran, Iran
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Introduction
Despite the growth and expansion of various industrial sectors, rural development has not yet been successful [Shahidi et al., 2009]. Most scholars of rural development believe that past strategies, due to their urban-biased and technocratic orientation, have failed to play an effective role in distributing the benefits of growth and development in rural areas. This limitation has, in turn, intensified the challenges of rural underdevelopment. The emergence of such problems and the inability of past approaches have led planners and policymakers to adopt new perspectives aimed at providing effective solutions for rural development. In this regard, rural development is considered a key strategy in regional development to reduce the challenges faced by rural areas [Sharpley & Telfer, 2002]. Consequently, new options based on local resources and capacities of these regions must be taken into account.
One of the promising avenues that can address rural challenges and revitalize rural communities is the establishment of businesses in the field of rural tourism [Perales, 2002; Su, 2011]. Business, in general, refers to activities involving the production and purchase of goods and services with the objective of selling them for profit. According to Hunt and Michael (1983), business encompasses any activity that provides goods or services needed by society, for which individuals are willing and able to pay. Petersen et al. (2012), however, emphasize that not every transaction constitutes a business; rather, business entails repeated and ongoing transactions of buying and selling.
The general belief is that the sole objective of business is economic profit. However, this is not entirely accurate. Just as human life is not limited to eating, the purpose of business is not restricted to profit-making. Businesses, therefore, pursue both economic and social objectives [Rahmati et al., 2015; Rahimi Kamalabadi, 2015]. Within the framework of tourism-related entrepreneurship, rural residents bring together various factors of production and economic productivity in tourism, creatively identify and exploit opportunities, and ultimately establish new models of economic activity. This process not only maximizes economic returns but also minimizes livelihood risks through sustainable approaches [Roknodin Eftekhari et al., 2014]. Rural spaces serve as ideal tourism destinations that attract diverse interests, while tourism revenues can play a vital role in job creation and income generation in rural areas, thereby supporting the development of small-scale enterprises and entrepreneurship [Rostami & Ehsanifar, 2018; Molera & Albadejo, 2007].
Small and medium-sized enterprises (SMEs) are thus considered effective means of job creation, poverty reduction, and income generation in rural communities [Samiyan et al., 2015; Sajasi Gheydari et al., 2015; Wanhill, 2000]. Rural areas, particularly those located on the peripheries of major cities, possess tourism potential and natural attractions that can serve as hubs of tourism. These areas not only provide temporary escapes from the pressures of urban life but, if managed with an entrepreneurial approach, can serve as a sustainable source of economic productivity while safeguarding the environment and strengthening ecological conservation. This process ultimately contributes to rural economic development, sustainability, and the reinforcement of urban–rural linkages through income spillovers from cities to rural areas.
Overall, rural tourism, as a strategy with relative advantages, can stimulate economic transformation through entrepreneurship, private-sector investment, and the promotion of small and medium-sized businesses. Achieving this, however, requires identifying tourism-rich rural centers, assessing the existing conditions of rural communities, and recognizing their potential natural and local capacities. A holistic approach that integrates agricultural and rural development is necessary [Shamsara, 2017; Bouzar Jomhori & Mododi Arkhodi, 2015]. In fact, exploring the diverse economic capacities of rural areas including geographical resources, landscape quality, and historical-cultural heritage is essential for improving local economies [Mahdavi et al., 2008]. Accordingly, identifying rural tourism SMEs and analyzing the barriers and opportunities they face is a prerequisite for tackling unemployment and promoting rural development [Valentinaov & Baum, 2008].
SMEs are commonly defined by criteria such as size, scope of activities, and asset value [López-Ortega et al., 2016; Sadeghloo et al., 2017], with workforce size being one of the most critical indicators. In this regard, tourism SMEs are often initiated and managed by individuals or small groups, and their management structure tends to be personalized [Akbaba, 2012]. Many researchers argue that addressing unemployment, poverty, and achieving industrial development depends largely on the growth of SMEs [Radas & Bozik, 2009]. In developing countries, these enterprises represent the main source of income, entrepreneurship, and innovation, playing a vital role in job creation, particularly for low-skilled workers and low-income women [Kotelnikov, 2007].
Tourism is thus regarded as a key component of sustainable rural development, fostering entrepreneurship and SME growth. By developing tourism-based entrepreneurship, rural residents can find employment within their communities, thereby reducing forced migration to urban areas in search of jobs [Kumbhar, 2012]. Tourism businesses also enable local populations to assess their resources, identify strengths and weaknesses, and align with principles of sustainable livelihoods, including economic efficiency, social equity, ecological integrity, and resilience [Tao & Wall, 2009].
Tourism-driven businesses in rural contexts are important for several reasons:
In Iran, rural entrepreneurship has been the subject of several studies. For example, Khezrpour (2018) highlights unemployment and rural-to-urban migration as the main challenges in developing countries, stressing the need for industrial policies to address these issues. Schumacher (2010) emphasizes that employment opportunities must be created in rural and small-town settings through small-scale industries that are cost-effective, resource-based, and simple in production methods. SMEs play a crucial role in fostering sustainable economic growth by generating jobs, attracting investment, and building the necessary economic capacity for long-term development. Such enterprises provide pathways for the socio-economic participation of marginalized groups, including youth, women, the elderly, migrants, ethnic minorities, and people with disabilities.
Empirical studies in Iran reveal multiple opportunities across agriculture, industry, tourism, and services. For instance, Valaee et al. (2018) identify agriculture as having significant potential for SME development. Rostami and Ehsanifar (2018) categorized the drivers of rural tourism entrepreneurship into two groups: Supporting actors and favorable climatic conditions, with local hospitality culture and institutional oversight playing key roles. Hosseini Nia and Fallahi (2017) classify the determinants of rural entrepreneurship into nine categories, including individual, cultural, infrastructural, natural, legal, educational, institutional, political, and economic factors. Hesam et al. (2017) found that while physical infrastructure and social capital were relatively strong, challenges remained in education, capital access, innovation, and marketing. Similarly, studies in Yazd identified recreational facilities as the top tourism entrepreneurship opportunities [Safari & Mohammad Mirzaei Bafghi, 2014]. Kohestani et al. (2014) emphasize the political dimension as the most influential factor in rural tourism entrepreneurship, while Rasoolinia (2014) highlightes socio-cultural capacity and infrastructure. Farahani and Hajihosseini (2014) argue that despite limited capacity in economic, social, and infrastructural domains, personal and infrastructural factors had the greatest impact on rural entrepreneurship.
Other international studies have identified internal factors (entrepreneurial characteristics, management capacity, marketing, and technological capabilities) and external factors (legal frameworks, financing, and human resources) as critical to SME success [Bouazza et al., 2016].
Against this background, the present study aims to examine the opportunities for developing small and medium-sized tourism enterprises in rural areas of Shemiranat County, located in northeastern Tehran
Methodology
The present research is applied in nature and was conducted in Shemiranat County during 2022–2023. The statistical population consisted of the target tourism villages of Shemiranat County. This county, with its capital in Tajrish, is one of the 16 counties of Tehran Province, covering an area of 1,188 km² in the northernmost part of the province. The study area is bordered by Nur and Amol counties to the north, Damavand to the east, Karaj to the west, and Tehran County to the south.
The study area was selected based on criteria such as the presence of tourist attractions and potentials, the proportion of tourist population, and geographical location. Among the rural districts of Rudbar Qasran, Greater Lavasan, and Lesser Lavasan, nine villages, Niknamdeh (population: 1,297), Kalan (population: 618), Greater Lavasan (population: 971), Afjeh (population: 1,079), Barg-e-Jahan (population: 577), Kond-e-Olya (population: 1,492), Ahar (population: 1,005), Emameh Bala (population: 1,066), and Rudak (population: 772) were selected as case studies using spatial cluster sampling.
The effective indicators for this research were identified through a review of the literature. These indicators were then incorporated into a researcher-developed questionnaire consisting of 84 items, assessed using a five-point Likert scale (very high impact, high impact, moderate impact, low impact, very low impact) (Appendix). To evaluate the questionnaire’s validity, expert panel opinions were solicited. Accordingly, 21 experts were selected through purposive sampling based on their expertise, knowledge, and familiarity with the study area, and the questionnaire was distributed among them. Following two rounds of revisions by the panel members, the number of items was reduced to 80. The reliability of the research instrument was confirmed using Cronbach’s alpha.
In the next stage, the finalized questionnaire was distributed among 313 residents of the studied villages. These participants were chosen through snowball sampling. Specifically, from the villages of Niknamdeh, Kalan, Greater Lavasan, Afjeh, Barg-e-Jahan, Kond-e-Olya, Ahar, Emameh Bala, and Rudak, 45, 23, 34, 38, 21, 52, 35, 38, and 27 respondents, respectively, were selected. The sample size was determined based on Cochran’s formula for the total population, and the final number of respondents from each village was proportionally allocated according to the population of each village. The collected data were analyzed using one-sample t-tests and Friedman tests in SPSS version 22.
Findings
During the exploratory phase and the initial identification of research indicators and items based on previous studies and expert assessments, six main indicators were identified and, through computation, were integrated into composite indices. The results of the descriptive analysis of these six opportunities for small- and medium-sized tourism enterprises (SMTEs) in rural areas indicated which opportunities provide, in order of priority, the most favorable conditions for the establishment and development of rural tourism businesses.
The opportunities identified during the exploratory phase as supportive factors for the establishment of rural tourism businesses or as favorable conditions for improving production and service delivery in such enterprises were spatial opportunities, psychological opportunities, and attraction-based opportunities. Based on the responses collected from rural residents, these opportunities were evaluated as “favorable.”
The second category of opportunities for SMTEs in rural Lavasan consisted of economic and infrastructural opportunities, which received lower mean values and were therefore assessed as “relatively favorable”.
Analysis of the indicators related to opportunities for the development of SMTEs highlighted attraction-based, psychological, and infrastructural opportunities as the most significant in the rural environment of Lavasan. According to the results obtained from the one-sample t-test, combined with the descriptive analysis of the research variables and the author’s field observations during questionnaire administration, numerous opportunities were identified in this area. For example, villages in the region benefit from a temperate climate and natural attractions such as peaks and mountains. Six of the nine studied villages also featured historical, archaeological, or religious sites, including shrines and historic mosques, with Barg-e-Jahan and Emameh Bala being notable examples. Some villages, such as Shemshak, Dizin, and Rudak, offered ski resorts suitable for both local and international competitions. Additionally, rivers suitable for rafting were found near many of the studied villages.
Certain villages were equipped with specific infrastructure for hosting tourists, for instance, Rudak, Emameh Bala, and Ahar (the latter being notable for its shrine, location along access routes to ski resorts, and the presence of an equestrian club that has attracted increasing attention in recent years). Villages such as Niknamdeh and Afjeh also offered favorable tourism opportunities due to their good transportation links, proximity to Lavasan city, and access to the city’s diverse facilities.
The availability of infrastructure in villages, the engagement of many residents in small-scale or home-based businesses, and the presence of service-oriented activities for tourists have collectively increased rural residents’ motivation for entrepreneurship. These factors have also influenced psychological aspects, such as fostering entrepreneurial spirit, enhancing awareness and knowledge about local attractions, applying experiential knowledge for innovation, striving to establish sustainable year-round businesses, and encouraging collective production efforts. Together, these dynamics reflect a set of opportunities for developing rural tourism enterprises.
The second group of opportunities related to factors that had less impact on the establishment of production- and service-oriented tourism businesses. These included economic and socio-cultural opportunities, which although present offered limited potential. Nevertheless, several economic opportunities were available, such as access to domestic and international markets for selling surplus products, simple and low-cost production technologies, sustainable local resource use, handicraft and food diversity, and demand for herbal medicine products. Additional opportunities included the establishment of youth sports clubs and equestrian facilities. These factors encouraged both local residents and external investors to develop new businesses or expand existing ones.
The one-sample t-test confirmed the presence of diverse opportunities that could facilitate the establishment and expansion of rural tourism-related businesses. The results were statistically significant at the 0.000 level, with a 99% confidence interval and 312 degrees of freedom. Therefore, the existence of multiple opportunities for SMTE development in rural tourism settings was strongly supported, and significant differences were observed among the identified opportunities from the perspective of local respondents.
Subsequently, the Friedman test was applied to rank the six identified opportunities for supporting rural residents in developing SMTEs. Based on this ranking, the opportunities were prioritized as follows: attraction-based, psychological, infrastructural, economic, spatial, and socio-cultural. The Friedman test results were statistically significant at the 0.000 level, with a 99% confidence interval, 5 degrees of freedom, and a chi-square value of 1183. This provides strong statistical evidence for the ranking of opportunities in rural Lavasan.
Finally, the most important overall opportunities for SMTE development in Lavasan villages were: (1) the existence of local and nearby markets for selling rural products, (2) a sufficient population threshold composed of permanent residents, second-home owners, and day visitors, and (3) favorable conditions for establishing dairy processing workshops and scaling up small-scale household production.
Discussion
The rising rates of both latent and explicit unemployment in rural communities compared to urban areas, combined with limited prospects for large-scale industrial investment, have encouraged policymakers to promote small-scale businesses in rural settings. Within this framework, rural tourism emerges as a promising strategy with relative advantages that can drive economic transformation through entrepreneurship, private-sector investment, and the creation of conditions conducive to the development of small and medium-sized enterprises (SMEs). Achieving this goal requires identifying attractive centers with tourism potential, assessing the current status of rural communities in the study area, and recognizing the natural and indigenous capabilities of rural populations [Perales, 2002; Su, 2011; Bouzar Jomehri & Modudi Arkhodi, 2015].
This study aimed to identify opportunities for establishing and expanding tourism-related SMEs in Lavasan County, a region with decades of experience in rural tourism and one of the few areas near Tehran’s metropolitan region with notable tourism potential. Lavasan is also widely regarded as a major hub for second-home residences of urban dwellers.
The results correspond with the findings of Farahani and Haji Hosseini [2014], who observe that rural communities lacked adequate capacity for entrepreneurship across individual, economic, social, and infrastructural dimensions. However, they highlight individual and infrastructural factors as the most influential, requiring targeted investment to foster opportunities for SME development. Similarly, the present findings demonstrate that economic, socio-cultural, psychological, and attraction-based opportunities constitute significant potentials for developing small- and medium-sized tourism-related businesses.
Consistent with this, Ghanbari et al. [2016] identify both strengths such as the region’s strategic location along national transit routes and weaknesses, including a weak entrepreneurial culture and institutional neglect. They also emphasized threats such as the destruction of historical sites and land-use changes, while noting the importance of income-generating opportunities. These insights align with the current study’s categorization of opportunities into highly impactful yet variably accessible factors.
Sefidbari et al. [2011] demonstrate that clustering rural businesses can significantly reduce unemployment and create added value, reinforcing the present study’s conclusion that tourism-related opportunities can generate value-added income and employment in Lavasan. Similarly, Ghanian et al. [2012] emphasize the importance of interest in establishing tourism-related enterprises, networks of local producers, and regional security. These findings resonate strongly with the current study, although their claim that individuals with higher education had the greatest participation in tourism entrepreneurship contrasts with the present results, where experiential knowledge and risk-taking emerged as more decisive factors.
Additional studies reinforce these conclusions. Omidi and Chaharsooghi [2018] demonstrated that home-based businesses play a crucial role in poverty reduction due to their low start-up costs, independence, and adaptability. Rahmani et al. [2018] confirmed that tourism fosters entrepreneurial traits such as creativity, risk-taking, and self-confidence. Hosseini Nia and Fallahi [2017] identified nine categories of entrepreneurship drivers, including cultural, infrastructural, natural, institutional, and economic factors which are consistent with the multidimensional opportunities observed in Lavasan.
Hesam et al. [2017] point out that rural areas, while benefiting from infrastructure and social cohesion, often lack adequate education, consulting, capital, and marketing capacity. These findings correspond with the dual categorization of opportunities in this study into accessible versus less achievable factors. Similarly, Kohestani et al. [2014] highlight infrastructural, spatial, economic, and social drivers, although they ranked attraction-based opportunities lower than in the present study, where attractions were among the most significant. Such discrepancies may be attributed to geographical and socio-cultural differences between regions.
Romeo Asa and Shalendra Prasad [2014] emphasize managerial, educational, and strategic agility as key factors in business sustainability. Their findings overlap with this study, which also underscores economic, managerial-educational, psychological, and attraction-based dimensions of tourism entrepreneurship. Similarly, Stavroulakis et al. [2013] demonstrate that agritourism creates employment and supplementary income for rural women. The present study revealed a parallel trend, as many home-based tourism businesses in Lavasan villages were operated by women, often connected to agricultural activities. Songkhla [2022] further confirmed that agritourism generates higher revenues for farmers than agricultural sales alone, a result mirrored here, where rural households engaged in processing and packaging agricultural products from neighboring villages to increase value-added income and employment.
Moti’i Langroudi et al. also highlight the role of individual and environmental factors in empowering rural populations for entrepreneurship, aligning with this study’s emphasis on psychological and attraction-based opportunities. Tao and Wall [2009] showed that rural tourism in Missouri enhanced resource efficiency, agricultural productivity, and economic diversification while reducing out-migration, results closely paralleling the socio-economic impacts of rural tourism observed in Lavasan. Similarly, Hamilpurka [2012] demonstrate that rural tourism entrepreneurship supports farmers’ incomes and promotes sustainable agricultural education, echoing the value-added agricultural enterprises documented here.
Finally, Hamzah et al. [2012] emphasize the role of rural tourism in social empowerment, skill development, and improved livelihoods. The present study confirms these outcomes, revealing that after the establishment of SMEs in Lavasan villages, residents experienced significant improvements in income, awareness, and cultural attitudes, with many seeking to expand production and access larger markets.
In summary, while substantial opportunities exist for SME development in rural tourism, certain constraints persist. Based on these findings, the following recommendations are offered:
Conclusion
There are considerable opportunities across multiple dimensions for the development of tourism and the economic growth of Lavasan. In this study, attraction-based, psychological, and infrastructural opportunities were identified as the most influential factors in creating favorable conditions for the development of small businesses in the region under investigation.
Acknowledgments: None reported by the authors.
Ethical Permission: None reported by the authors.
Conflict of Interest: None reported by the authors.
Authors’ Contributions: Momenzadeh Sh (first author): Principal Researcher/Methodologist/Statistical Analyst (40%); Ghadiri M (second author): Introduction Writer/Discussion Writer/Principal Researcher (20%); Faraji Sabokbar HA (third author): Introduction Writer/Methodologist/Principal Researcher (20%); Torkashvand Z (fourth author): Statistical Analyst/Assistant Researcher (10%); Khorasani MA (fifth author): Statistical Analyst/Assistant Researcher (10%)
Funding: The expenses of this research were covered by the student.
Despite the growth and expansion of various industrial sectors, rural development has not yet been successful [Shahidi et al., 2009]. Most scholars of rural development believe that past strategies, due to their urban-biased and technocratic orientation, have failed to play an effective role in distributing the benefits of growth and development in rural areas. This limitation has, in turn, intensified the challenges of rural underdevelopment. The emergence of such problems and the inability of past approaches have led planners and policymakers to adopt new perspectives aimed at providing effective solutions for rural development. In this regard, rural development is considered a key strategy in regional development to reduce the challenges faced by rural areas [Sharpley & Telfer, 2002]. Consequently, new options based on local resources and capacities of these regions must be taken into account.
One of the promising avenues that can address rural challenges and revitalize rural communities is the establishment of businesses in the field of rural tourism [Perales, 2002; Su, 2011]. Business, in general, refers to activities involving the production and purchase of goods and services with the objective of selling them for profit. According to Hunt and Michael (1983), business encompasses any activity that provides goods or services needed by society, for which individuals are willing and able to pay. Petersen et al. (2012), however, emphasize that not every transaction constitutes a business; rather, business entails repeated and ongoing transactions of buying and selling.
The general belief is that the sole objective of business is economic profit. However, this is not entirely accurate. Just as human life is not limited to eating, the purpose of business is not restricted to profit-making. Businesses, therefore, pursue both economic and social objectives [Rahmati et al., 2015; Rahimi Kamalabadi, 2015]. Within the framework of tourism-related entrepreneurship, rural residents bring together various factors of production and economic productivity in tourism, creatively identify and exploit opportunities, and ultimately establish new models of economic activity. This process not only maximizes economic returns but also minimizes livelihood risks through sustainable approaches [Roknodin Eftekhari et al., 2014]. Rural spaces serve as ideal tourism destinations that attract diverse interests, while tourism revenues can play a vital role in job creation and income generation in rural areas, thereby supporting the development of small-scale enterprises and entrepreneurship [Rostami & Ehsanifar, 2018; Molera & Albadejo, 2007].
Small and medium-sized enterprises (SMEs) are thus considered effective means of job creation, poverty reduction, and income generation in rural communities [Samiyan et al., 2015; Sajasi Gheydari et al., 2015; Wanhill, 2000]. Rural areas, particularly those located on the peripheries of major cities, possess tourism potential and natural attractions that can serve as hubs of tourism. These areas not only provide temporary escapes from the pressures of urban life but, if managed with an entrepreneurial approach, can serve as a sustainable source of economic productivity while safeguarding the environment and strengthening ecological conservation. This process ultimately contributes to rural economic development, sustainability, and the reinforcement of urban–rural linkages through income spillovers from cities to rural areas.
Overall, rural tourism, as a strategy with relative advantages, can stimulate economic transformation through entrepreneurship, private-sector investment, and the promotion of small and medium-sized businesses. Achieving this, however, requires identifying tourism-rich rural centers, assessing the existing conditions of rural communities, and recognizing their potential natural and local capacities. A holistic approach that integrates agricultural and rural development is necessary [Shamsara, 2017; Bouzar Jomhori & Mododi Arkhodi, 2015]. In fact, exploring the diverse economic capacities of rural areas including geographical resources, landscape quality, and historical-cultural heritage is essential for improving local economies [Mahdavi et al., 2008]. Accordingly, identifying rural tourism SMEs and analyzing the barriers and opportunities they face is a prerequisite for tackling unemployment and promoting rural development [Valentinaov & Baum, 2008].
SMEs are commonly defined by criteria such as size, scope of activities, and asset value [López-Ortega et al., 2016; Sadeghloo et al., 2017], with workforce size being one of the most critical indicators. In this regard, tourism SMEs are often initiated and managed by individuals or small groups, and their management structure tends to be personalized [Akbaba, 2012]. Many researchers argue that addressing unemployment, poverty, and achieving industrial development depends largely on the growth of SMEs [Radas & Bozik, 2009]. In developing countries, these enterprises represent the main source of income, entrepreneurship, and innovation, playing a vital role in job creation, particularly for low-skilled workers and low-income women [Kotelnikov, 2007].
Tourism is thus regarded as a key component of sustainable rural development, fostering entrepreneurship and SME growth. By developing tourism-based entrepreneurship, rural residents can find employment within their communities, thereby reducing forced migration to urban areas in search of jobs [Kumbhar, 2012]. Tourism businesses also enable local populations to assess their resources, identify strengths and weaknesses, and align with principles of sustainable livelihoods, including economic efficiency, social equity, ecological integrity, and resilience [Tao & Wall, 2009].
Tourism-driven businesses in rural contexts are important for several reasons:
- First, they are rational, as they grant individuals and groups greater control over their work and create opportunities for fulfilling their own needs, including growth and sustainable development.
- Second, they are more humane, since rural entrepreneurship does not exploit or harm others but instead empowers communities.
- Third, they are environmentally friendly, ensuring that economic activities align with natural and human ecosystems without degrading the environment [Kumbhar, 2012].
In Iran, rural entrepreneurship has been the subject of several studies. For example, Khezrpour (2018) highlights unemployment and rural-to-urban migration as the main challenges in developing countries, stressing the need for industrial policies to address these issues. Schumacher (2010) emphasizes that employment opportunities must be created in rural and small-town settings through small-scale industries that are cost-effective, resource-based, and simple in production methods. SMEs play a crucial role in fostering sustainable economic growth by generating jobs, attracting investment, and building the necessary economic capacity for long-term development. Such enterprises provide pathways for the socio-economic participation of marginalized groups, including youth, women, the elderly, migrants, ethnic minorities, and people with disabilities.
Empirical studies in Iran reveal multiple opportunities across agriculture, industry, tourism, and services. For instance, Valaee et al. (2018) identify agriculture as having significant potential for SME development. Rostami and Ehsanifar (2018) categorized the drivers of rural tourism entrepreneurship into two groups: Supporting actors and favorable climatic conditions, with local hospitality culture and institutional oversight playing key roles. Hosseini Nia and Fallahi (2017) classify the determinants of rural entrepreneurship into nine categories, including individual, cultural, infrastructural, natural, legal, educational, institutional, political, and economic factors. Hesam et al. (2017) found that while physical infrastructure and social capital were relatively strong, challenges remained in education, capital access, innovation, and marketing. Similarly, studies in Yazd identified recreational facilities as the top tourism entrepreneurship opportunities [Safari & Mohammad Mirzaei Bafghi, 2014]. Kohestani et al. (2014) emphasize the political dimension as the most influential factor in rural tourism entrepreneurship, while Rasoolinia (2014) highlightes socio-cultural capacity and infrastructure. Farahani and Hajihosseini (2014) argue that despite limited capacity in economic, social, and infrastructural domains, personal and infrastructural factors had the greatest impact on rural entrepreneurship.
Other international studies have identified internal factors (entrepreneurial characteristics, management capacity, marketing, and technological capabilities) and external factors (legal frameworks, financing, and human resources) as critical to SME success [Bouazza et al., 2016].
Against this background, the present study aims to examine the opportunities for developing small and medium-sized tourism enterprises in rural areas of Shemiranat County, located in northeastern Tehran
Methodology
The present research is applied in nature and was conducted in Shemiranat County during 2022–2023. The statistical population consisted of the target tourism villages of Shemiranat County. This county, with its capital in Tajrish, is one of the 16 counties of Tehran Province, covering an area of 1,188 km² in the northernmost part of the province. The study area is bordered by Nur and Amol counties to the north, Damavand to the east, Karaj to the west, and Tehran County to the south.
The study area was selected based on criteria such as the presence of tourist attractions and potentials, the proportion of tourist population, and geographical location. Among the rural districts of Rudbar Qasran, Greater Lavasan, and Lesser Lavasan, nine villages, Niknamdeh (population: 1,297), Kalan (population: 618), Greater Lavasan (population: 971), Afjeh (population: 1,079), Barg-e-Jahan (population: 577), Kond-e-Olya (population: 1,492), Ahar (population: 1,005), Emameh Bala (population: 1,066), and Rudak (population: 772) were selected as case studies using spatial cluster sampling.
The effective indicators for this research were identified through a review of the literature. These indicators were then incorporated into a researcher-developed questionnaire consisting of 84 items, assessed using a five-point Likert scale (very high impact, high impact, moderate impact, low impact, very low impact) (Appendix). To evaluate the questionnaire’s validity, expert panel opinions were solicited. Accordingly, 21 experts were selected through purposive sampling based on their expertise, knowledge, and familiarity with the study area, and the questionnaire was distributed among them. Following two rounds of revisions by the panel members, the number of items was reduced to 80. The reliability of the research instrument was confirmed using Cronbach’s alpha.
In the next stage, the finalized questionnaire was distributed among 313 residents of the studied villages. These participants were chosen through snowball sampling. Specifically, from the villages of Niknamdeh, Kalan, Greater Lavasan, Afjeh, Barg-e-Jahan, Kond-e-Olya, Ahar, Emameh Bala, and Rudak, 45, 23, 34, 38, 21, 52, 35, 38, and 27 respondents, respectively, were selected. The sample size was determined based on Cochran’s formula for the total population, and the final number of respondents from each village was proportionally allocated according to the population of each village. The collected data were analyzed using one-sample t-tests and Friedman tests in SPSS version 22.
Findings
During the exploratory phase and the initial identification of research indicators and items based on previous studies and expert assessments, six main indicators were identified and, through computation, were integrated into composite indices. The results of the descriptive analysis of these six opportunities for small- and medium-sized tourism enterprises (SMTEs) in rural areas indicated which opportunities provide, in order of priority, the most favorable conditions for the establishment and development of rural tourism businesses.
The opportunities identified during the exploratory phase as supportive factors for the establishment of rural tourism businesses or as favorable conditions for improving production and service delivery in such enterprises were spatial opportunities, psychological opportunities, and attraction-based opportunities. Based on the responses collected from rural residents, these opportunities were evaluated as “favorable.”
The second category of opportunities for SMTEs in rural Lavasan consisted of economic and infrastructural opportunities, which received lower mean values and were therefore assessed as “relatively favorable”.
Analysis of the indicators related to opportunities for the development of SMTEs highlighted attraction-based, psychological, and infrastructural opportunities as the most significant in the rural environment of Lavasan. According to the results obtained from the one-sample t-test, combined with the descriptive analysis of the research variables and the author’s field observations during questionnaire administration, numerous opportunities were identified in this area. For example, villages in the region benefit from a temperate climate and natural attractions such as peaks and mountains. Six of the nine studied villages also featured historical, archaeological, or religious sites, including shrines and historic mosques, with Barg-e-Jahan and Emameh Bala being notable examples. Some villages, such as Shemshak, Dizin, and Rudak, offered ski resorts suitable for both local and international competitions. Additionally, rivers suitable for rafting were found near many of the studied villages.
Certain villages were equipped with specific infrastructure for hosting tourists, for instance, Rudak, Emameh Bala, and Ahar (the latter being notable for its shrine, location along access routes to ski resorts, and the presence of an equestrian club that has attracted increasing attention in recent years). Villages such as Niknamdeh and Afjeh also offered favorable tourism opportunities due to their good transportation links, proximity to Lavasan city, and access to the city’s diverse facilities.
The availability of infrastructure in villages, the engagement of many residents in small-scale or home-based businesses, and the presence of service-oriented activities for tourists have collectively increased rural residents’ motivation for entrepreneurship. These factors have also influenced psychological aspects, such as fostering entrepreneurial spirit, enhancing awareness and knowledge about local attractions, applying experiential knowledge for innovation, striving to establish sustainable year-round businesses, and encouraging collective production efforts. Together, these dynamics reflect a set of opportunities for developing rural tourism enterprises.
The second group of opportunities related to factors that had less impact on the establishment of production- and service-oriented tourism businesses. These included economic and socio-cultural opportunities, which although present offered limited potential. Nevertheless, several economic opportunities were available, such as access to domestic and international markets for selling surplus products, simple and low-cost production technologies, sustainable local resource use, handicraft and food diversity, and demand for herbal medicine products. Additional opportunities included the establishment of youth sports clubs and equestrian facilities. These factors encouraged both local residents and external investors to develop new businesses or expand existing ones.
The one-sample t-test confirmed the presence of diverse opportunities that could facilitate the establishment and expansion of rural tourism-related businesses. The results were statistically significant at the 0.000 level, with a 99% confidence interval and 312 degrees of freedom. Therefore, the existence of multiple opportunities for SMTE development in rural tourism settings was strongly supported, and significant differences were observed among the identified opportunities from the perspective of local respondents.
Subsequently, the Friedman test was applied to rank the six identified opportunities for supporting rural residents in developing SMTEs. Based on this ranking, the opportunities were prioritized as follows: attraction-based, psychological, infrastructural, economic, spatial, and socio-cultural. The Friedman test results were statistically significant at the 0.000 level, with a 99% confidence interval, 5 degrees of freedom, and a chi-square value of 1183. This provides strong statistical evidence for the ranking of opportunities in rural Lavasan.
Finally, the most important overall opportunities for SMTE development in Lavasan villages were: (1) the existence of local and nearby markets for selling rural products, (2) a sufficient population threshold composed of permanent residents, second-home owners, and day visitors, and (3) favorable conditions for establishing dairy processing workshops and scaling up small-scale household production.
Discussion
The rising rates of both latent and explicit unemployment in rural communities compared to urban areas, combined with limited prospects for large-scale industrial investment, have encouraged policymakers to promote small-scale businesses in rural settings. Within this framework, rural tourism emerges as a promising strategy with relative advantages that can drive economic transformation through entrepreneurship, private-sector investment, and the creation of conditions conducive to the development of small and medium-sized enterprises (SMEs). Achieving this goal requires identifying attractive centers with tourism potential, assessing the current status of rural communities in the study area, and recognizing the natural and indigenous capabilities of rural populations [Perales, 2002; Su, 2011; Bouzar Jomehri & Modudi Arkhodi, 2015].
This study aimed to identify opportunities for establishing and expanding tourism-related SMEs in Lavasan County, a region with decades of experience in rural tourism and one of the few areas near Tehran’s metropolitan region with notable tourism potential. Lavasan is also widely regarded as a major hub for second-home residences of urban dwellers.
The results correspond with the findings of Farahani and Haji Hosseini [2014], who observe that rural communities lacked adequate capacity for entrepreneurship across individual, economic, social, and infrastructural dimensions. However, they highlight individual and infrastructural factors as the most influential, requiring targeted investment to foster opportunities for SME development. Similarly, the present findings demonstrate that economic, socio-cultural, psychological, and attraction-based opportunities constitute significant potentials for developing small- and medium-sized tourism-related businesses.
Consistent with this, Ghanbari et al. [2016] identify both strengths such as the region’s strategic location along national transit routes and weaknesses, including a weak entrepreneurial culture and institutional neglect. They also emphasized threats such as the destruction of historical sites and land-use changes, while noting the importance of income-generating opportunities. These insights align with the current study’s categorization of opportunities into highly impactful yet variably accessible factors.
Sefidbari et al. [2011] demonstrate that clustering rural businesses can significantly reduce unemployment and create added value, reinforcing the present study’s conclusion that tourism-related opportunities can generate value-added income and employment in Lavasan. Similarly, Ghanian et al. [2012] emphasize the importance of interest in establishing tourism-related enterprises, networks of local producers, and regional security. These findings resonate strongly with the current study, although their claim that individuals with higher education had the greatest participation in tourism entrepreneurship contrasts with the present results, where experiential knowledge and risk-taking emerged as more decisive factors.
Additional studies reinforce these conclusions. Omidi and Chaharsooghi [2018] demonstrated that home-based businesses play a crucial role in poverty reduction due to their low start-up costs, independence, and adaptability. Rahmani et al. [2018] confirmed that tourism fosters entrepreneurial traits such as creativity, risk-taking, and self-confidence. Hosseini Nia and Fallahi [2017] identified nine categories of entrepreneurship drivers, including cultural, infrastructural, natural, institutional, and economic factors which are consistent with the multidimensional opportunities observed in Lavasan.
Hesam et al. [2017] point out that rural areas, while benefiting from infrastructure and social cohesion, often lack adequate education, consulting, capital, and marketing capacity. These findings correspond with the dual categorization of opportunities in this study into accessible versus less achievable factors. Similarly, Kohestani et al. [2014] highlight infrastructural, spatial, economic, and social drivers, although they ranked attraction-based opportunities lower than in the present study, where attractions were among the most significant. Such discrepancies may be attributed to geographical and socio-cultural differences between regions.
Romeo Asa and Shalendra Prasad [2014] emphasize managerial, educational, and strategic agility as key factors in business sustainability. Their findings overlap with this study, which also underscores economic, managerial-educational, psychological, and attraction-based dimensions of tourism entrepreneurship. Similarly, Stavroulakis et al. [2013] demonstrate that agritourism creates employment and supplementary income for rural women. The present study revealed a parallel trend, as many home-based tourism businesses in Lavasan villages were operated by women, often connected to agricultural activities. Songkhla [2022] further confirmed that agritourism generates higher revenues for farmers than agricultural sales alone, a result mirrored here, where rural households engaged in processing and packaging agricultural products from neighboring villages to increase value-added income and employment.
Moti’i Langroudi et al. also highlight the role of individual and environmental factors in empowering rural populations for entrepreneurship, aligning with this study’s emphasis on psychological and attraction-based opportunities. Tao and Wall [2009] showed that rural tourism in Missouri enhanced resource efficiency, agricultural productivity, and economic diversification while reducing out-migration, results closely paralleling the socio-economic impacts of rural tourism observed in Lavasan. Similarly, Hamilpurka [2012] demonstrate that rural tourism entrepreneurship supports farmers’ incomes and promotes sustainable agricultural education, echoing the value-added agricultural enterprises documented here.
Finally, Hamzah et al. [2012] emphasize the role of rural tourism in social empowerment, skill development, and improved livelihoods. The present study confirms these outcomes, revealing that after the establishment of SMEs in Lavasan villages, residents experienced significant improvements in income, awareness, and cultural attitudes, with many seeking to expand production and access larger markets.
In summary, while substantial opportunities exist for SME development in rural tourism, certain constraints persist. Based on these findings, the following recommendations are offered:
- Encourage community participation and collaboration in establishing rural SMEs.
- Promote the creation of small, rapid-return enterprises, activate rural cooperatives, and strengthen institutional partnerships through joint workshops with local stakeholders, particularly in agriculture, fisheries, and natural resources.
- In mountainous villages such as Kalan, where agriculture is less feasible but water resources are abundant, prioritize the development of aquaculture and fish farming enterprises tailored to regional capabilities.
Conclusion
There are considerable opportunities across multiple dimensions for the development of tourism and the economic growth of Lavasan. In this study, attraction-based, psychological, and infrastructural opportunities were identified as the most influential factors in creating favorable conditions for the development of small businesses in the region under investigation.
Acknowledgments: None reported by the authors.
Ethical Permission: None reported by the authors.
Conflict of Interest: None reported by the authors.
Authors’ Contributions: Momenzadeh Sh (first author): Principal Researcher/Methodologist/Statistical Analyst (40%); Ghadiri M (second author): Introduction Writer/Discussion Writer/Principal Researcher (20%); Faraji Sabokbar HA (third author): Introduction Writer/Methodologist/Principal Researcher (20%); Torkashvand Z (fourth author): Statistical Analyst/Assistant Researcher (10%); Khorasani MA (fifth author): Statistical Analyst/Assistant Researcher (10%)
Funding: The expenses of this research were covered by the student.
Keywords:
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