Extended Abstract
Introduction:
Entrepreneurship, by creating a platform to increase employment levels and strengthen the foundations of sustainable employment in rural areas, can enhance the durability and sustainability of villages and prevent the migration of labor to large cities. Another potential impact is the reduction of inequality and poverty in rural areas. Therefore, understanding the influence of entrepreneurial indicators on rural employment and facilitating the expansion of an entrepreneurial environment in less developed provinces with the goal of achieving sustainable employment in these regions can be of great importance.
Rural employment is one of the fundamental challenges in the development of deprived regions in Iran, particularly in Sistan and Baluchestan Province. Despite the natural and human potential in this province, rural unemployment rates remain high, with many villagers turning to low-income jobs or migrating to cities. On the other hand, entrepreneurship, as an engine of economic growth, can contribute to economic prosperity and reduced unemployment by creating new job opportunities and optimizing the use of local resources.
Understanding the relationship between entrepreneurial indicators and rural employment in Sistan and Baluchestan can assist policymakers in designing targeted programs for rural development. Additionally, given the cultural and geographical diversity of this province, the findings of this study can serve as a model for other deprived regions in Iran.
While most existing programs and studies on rural entrepreneurship have primarily focused on the agricultural sector, this research adopts a novel approach by examining the effects of entrepreneurship on employment using spatial analysis and moving beyond a one-dimensional perspective. In other words, instead of a narrow focus on agriculture, it will analyze all economic sectors industry, services, and agriculture. It is also worth noting that this study is the first of its kind for villages in Sistan and Baluchestan Province and seeks to test the following hypotheses:
1. Entrepreneurial indicators have a direct effect on the level of rural employment in Sistan and Baluchestan Province.
2. Entrepreneurship indicators have indirect effects (spatial spillover) on the employment levels of neighboring provinces.
Thus, this study was conducted to examine the impact of factors influencing employment, with an emphasis on entrepreneurship in Sistan and Baluchestan Province during the period 2006–2022.

Materials and Methods:
This study is applied in purpose and quantitative in nature. Analyzing the relationship between regional inequality and economic growth from a spatial perspective requires an appropriate model specification. In fact, regional growth can be influenced by inequality in the regional economy as well as inequality in neighboring regions. Therefore, an analytical model of factors affecting employment with an emphasis on entrepreneurship in rural areas of southern Iran is presented using a spatial econometrics approach. For statistical analysis and economic modeling, spatial econometric methods were employed, and the final estimation of the research model was based on the Spatial Autoregressive Model (SAR), including direct, indirect, and total effects of the independent variables.

Results and Discussion:
In this study, first, the theoretical foundations and the relationship between independent and dependent variables were examined based on previous research. Then, using spatial econometric methods, various analyses were conducted, including descriptive statistics, cross-sectional dependence tests (Pesaran, 2004), unit root tests (Pesaran, 2007), spatial dependence (Moran’s I), and Spatial Autoregressive Models (SAR). Additionally, diagnostic tests such as the spatial Wald coefficient, Akaike, Lagrange, and Hausman tests were used to determine the type of spatial dependence (lag, error, or combined) and whether fixed or random effects were present.
The results of the spatial autoregressive model showed that the entrepreneurship index has a positive and significant impact on rural employment, with a 1% increase leading to an 11% rise in employment in neighboring rural areas. Additionally, the economically active population and capital (developmental) credits had positive direct and indirect effects on employment, while the wage rate showed a negative and significant relationship with employment, with an increase leading to a 9% decline in employment in adjacent regions. These findings align with the theoretical foundations of the research and highlight the importance of entrepreneurship policies and investment in rural employment development.

Conclusions:
The overall findings of this study indicate that the entrepreneurship index and its related components have a positive effect on employment in both target and neighboring rural areas of Sistan and Baluchestan Province. Moreover, the logarithmic variables of the economically active population and capital asset (developmental) credits positively influence rural employment in Sistan and Baluchestan, whereas the wage rate has a negative effect on rural employment in the province.