Village and Development

Village and Development

Exploring Financial Literacy in Agricultural Entrepreneurship: A Qualitative Study of Farmers in Golestan Province

Document Type : Original Article

Authors
M. Mohammadi Khyareh 1
A. Zivary 2
1 Associate Professor, Department of Administrative and Economic Sciences, Faculty of Humanities, Gonbad Kavous University, Gonbad Kavous, Iran.
2 Ph.D. in Entrepreneurship Development, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran.
10.30490/rvt.2025.367406.1654
Abstract
Abstract
Introduction
Financial literacy plays a crucial role in the success of entrepreneurs, especially in the agricultural sector where economic viability intersects with complex environmental and sociocultural factors. This study aims to investigate the relationship between financial literacy and agricultural entrepreneurship by developing a comprehensive model of entrepreneurial financial literacy (EFL) among farmers in Golestan Province, Iran. Traditional financial literacy models often overlook contextual factors such as cultural norms and localized economic practices, which are essential in shaping entrepreneurial behavior in rural areas. This research bridges this gap by integrating cultural, psychological, and educational dimensions into a holistic EFL framework tailored to agricultural contexts.
Materials and Methods
A qualitative approach was used, involving semi-structured interviews with 15 purposively selected participants, including academic experts, financial professionals, and entrepreneurial farmers in Golestan Province. Data collection focused on participants' views on financial decision-making, risk management, and the influence of cultural practices on financial behaviors. Thematic analysis, following Braun and Clarke's (2006) six-step methodology, was conducted using MAXQDA software. Iterative coding identified recurring patterns, leading to the development of themes that capture the core components of EFL.
Results and Discussion
Three interrelated themes emerged:

Financial Knowledge Gaps: Farmers lacked foundational financial skills, such as cost-benefit analysis and liquidity management, which hindered their ability to optimize resource allocation.
Cultural and Indigenous Factors: Local traditions, familial cooperation networks, and risk-averse attitudes significantly influenced financial decisions. For example, reliance on informal community-based financial support often outweighed engagement with formal banking systems.
Patterns of Financial Tool Usage: There was a disconnect between modern financial instruments (e.g., loans, insurance) and farmers' trust in traditional practices, highlighting the need for hybrid solutions.

The proposed EFL model emphasizes the symbiotic relationship between financial education and cultural adaptation. It suggests that entrepreneurial motivation is enhanced when financial training aligns with local values, such as integrating indigenous cooperative systems (e.g., hamiyari) with formal financial services. This synergy not only improves economic efficiency but also promotes sustainable rural enterprises.
Conclusions
This study contributes to the theoretical discourse on financial literacy by highlighting the importance of cultural contextualization in effective EFL models. It calls for policymakers, agricultural extension services, and financial institutions to collaborate on designing localized educational programs that blend traditional practices with modern financial tools. For instance, microfinance initiatives could incorporate community-led risk-sharing mechanisms to increase adoption rates. By addressing both cognitive and sociocultural dimensions, the model offers a pathway to enhance agricultural entrepreneurship, economic resilience, and rural development in regions like Golestan.
Keywords
Agricultural Entrepreneurship
Entrepreneurial Model
Financial Literacy
Golestan Province
Thematic Analysis

Subjects

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