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A machine learning approach to rural entrepreneurship

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  • Mehmet Güney Celbiş

Abstract

This study offers a novel approach to understand the mechanisms of rural entrepreneurship by applying five alternative machine learning techniques on data obtained from the Life in Transition Survey III. Results highlight how capital constraints, age, factors related to trust and over‐trust, awareness of current trends, the use of various media tools, a competitive character, institutional factors, and education are associated with the success and failure of potential entrepreneurs in rural areas who attempt to set up a business. The final predictions are achieved with accuracies ranging from seventy‐two to ninety‐two percent. Este estudio ofrece un enfoque novedoso para entender los mecanismos de las actividades de creación de empresas en el medio rural mediante la aplicación de cinco técnicas alternativas de aprendizaje automático sobre datos obtenidos de la Encuesta de Vida en Transición III. Los resultados ponen de manifiesto cómo las limitaciones de capital, la edad, los factores relacionados con la confianza y el exceso de confianza, el conocimiento de las tendencias actuales, el uso de diversas herramientas de comunicación, el carácter competitivo, los factores institucionales y la educación están asociados con el éxito y el fracaso de los posibles empresarios de las zonas rurales que tratan de crear una empresa. Las predicciones finales se consiguen con precisiones que van desde el setenta y dos al noventa y dos por ciento. 本稿では、Life in Transition Survey IIIから得られたデータに5つの機械学習技術を適用した、農村におけるアントレプレナーシップのメカニズムを理解する新規のアプローチを提示する。結果から、資本制約、年齢、信用と信用過剰に関連する要因、最新の傾向の認識、様々なメディアツールの使用、競争的性格、制度的要因、学歴、の以上が起業を考える農村地域における潜在的起業家の成功と失敗にどのように関連しているかが明確に示される。最終予測は72~92%の範囲の精度で的中した。

Suggested Citation

  • Mehmet Güney Celbiş, 2021. "A machine learning approach to rural entrepreneurship," Papers in Regional Science, Wiley Blackwell, vol. 100(4), pages 1079-1104, August.
  • Handle: RePEc:bla:presci:v:100:y:2021:i:4:p:1079-1104
    DOI: 10.1111/pirs.12595
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