Agricultural Economics and Development

Agricultural Economics and Development

Investigation of Factors Affecting the Failure of Early-Return Enterprises in the Agriculture Sector of Dasht-e Azadegan City

Authors
M. Aghapour Sabbaghi
L. Cheldavi
10.30490/aead.2016.59014
Abstract
The main objective of expanding the agriculture sector`s early-return enterprises is employment and the sector`s own development. However, statistics indicate that theses enterprises has failed to reach their desired objectives. Therefore in this study the reasons of the failure of these enterprises is evaluated. Data was collected through a questionnaire given to 170 early-return enterprises of animal husbandry sector in 2012. Logit model and discriminate analysis function were used as the methodology of this study. Results of evaluating the Logit model and using discriminate analysis function indicate that instantaneous ratio, initial capital to the received loan ratio, incentive bonuses to fix salary ratio ,and the kind of plan are factors affecting the enterprises` success. Based on the results, it is suggested that before paying any loan, studies on the financial ability of the executers and what they are responsible for as personal equity are accomplished.

JEL Classification: D21, H32, H81

Keywords:
Small and Early- Return Enterprises, Logit Model, Discriminate Analysis Function, Dasht-e Azadegan City