Introduction
Rural entrepreneurship is a key driver of employment, income diversification, and population stabilization in rural areas. In Iran, Dehyaris (village administration offices) serve as the primary local institutions responsible for rural management. Despite their formal mandate to facilitate local economic development, empirical evidence on how Dehyars' management styles influence entrepreneurial outcomes remains limited, particularly in less-developed regions like Lorestan province. Lorestan faces persistent challenges including high unemployment and substantial rural out-migration. This study addresses a critical research gap: while previous studies have focused on infrastructure, economic, or individual-level factors, the role of local leadership has rarely been quantified. Specifically, this study investigates the impact of four Dehyari management styles—transformational, participatory, authoritarian, and passive—on entrepreneurship growth in rural Lorestan.
Materials and Methods
A descriptive-correlational design was employed. The statistical population included key stakeholders (Dehyars, Council members, and local entrepreneurs) in villages with active Dehyaris across Lorestan province. Using stratified random sampling, 280 villages were selected from 1,200 villages with active Dehyaris. Data were collected using a researcher-developed questionnaire whose validity was confirmed by a panel of 15 experts and whose reliability was established with Cronbach's alpha of 0.894. The questionnaire measured four management styles (28 items) and five dimensions of entrepreneurship growth (20 items) on a 5-point Likert scale. Data were analyzed using SPSS26, employing Pearson correlation, multiple regression, and one-way ANOVA.
Results and Discussion
Findings reveal that rural entrepreneurship is relatively low (mean = 2.76 out of 5), with "networking" and "innovation" recording the lowest scores. A strong and significant relationship exists between management styles and entrepreneurship growth. Transformational (r = 0.71) and participatory (r = 0.66) styles show strong positive correlations, while authoritarian (r = -0.39) and passive (r = -0.57) styles show negative correlations. The passive style shows the strongest negative relationship, indicating that managerial inaction is even more detrimental than authoritarian control—underscoring the need for active institutional leadership.
Multiple regression indicates that the four styles collectively explain 61.4% of the variance in entrepreneurship growth (R² = 0.614). While substantial for social science research, nearly 40% of the variance is attributable to other structural factors (e.g., access to capital, infrastructure), warranting cautious interpretation. Transformational leadership makes the largest positive contribution (β = 0.414), followed by participatory management (β = 0.287). Passive management contributes the strongest negative effect (β = -0.293), with authoritarian style showing a smaller negative contribution (β = -0.158). ANOVA results confirm that entrepreneurship growth is significantly higher in villages with dominant transformational (mean = 3.41) or participatory (mean = 3.19) styles compared to authoritarian (mean = 2.44) or passive (mean = 2.05) styles.
Conclusions
This study demonstrates that Dehyari management style is a primary determinant of rural economic dynamics in Lorestan province. The findings support the applicability of leadership theories to rural local governance. Transformational leadership fosters entrepreneurship by providing vision and reducing uncertainty, while participatory leadership facilitates entrepreneurship through strengthening social capital, including networks and trust. The two styles are complementary; participatory management may serve as a precursor to effective transformational leadership in rural contexts. The theoretical novelty lies in shifting the focus from "overall institutional performance" to "differentiated local leadership styles" and quantifying, for the first time in Lorestan province, the distinct contribution of each management style to entrepreneurship growth. From a policy perspective, empowering Dehyars to adopt transformational and participatory styles—through revised recruitment criteria, targeted training, and performance evaluation systems prioritizing economic outcomes—should be prioritized as a key strategy for fostering sustainable rural entrepreneurship and population stabilization in Lorestan province.