The Determinants of Entrepreneurs’ Business Performance in Rural South Jordan: Under the Mediating Role of Demographic Factors

Although managing a business may seem straightforward, effectively navigating and adapting to environmental changes presents considerable challenges. In Jordan, rural entrepreneurs play a pivotal role in fostering economic development, driving prosperity, and generating employment opportunities that contribute significant value to the economy. This study aims to analyze the factors influencing the business performance of rural Jordanian entrepreneurs (BPRJE). These factors are categorized into three main areas: personal traits, the external business environment, and supportive elements. Additionally, this study investigates the direct and indirect effects of perceived demographic factors within this framework. To achieve the research objectives, data were collected using purposive sampling and a cross-sectional survey. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed for data analysis. The results indicate that both the external business environment (EBE) and personal traits (PT) have a strong direct positive impact on BPRJE and an indirect influence through the mediating role of demographic factors (DF). However, supportive elements (SEL) were not significantly and positively correlated with BPRJE, either directly or through DF mediation. Furthermore, although perceived demographic factors influence BPRJE, they weaken the relationship between supportive elements and BPRJE. This study provides a comprehensive understanding of critical success factors and the role of demographic influences on the performance of rural Jordanian entrepreneurs. This underscores the importance of continued research on emerging entrepreneurial success factors and calls for comparative studies on rural entrepreneurship across different regional and global contexts to better address their unique challenges and opportunities.