CHAPTER 1: INTRODUCTION
In Canada, rural population has declined significantly in the last 160 years from about 88% share in 1851 to about 18% share in 2011 (Statistics Canada, 2012). In 2011, the rural population was about 6.3 million which is about 18.8 % of the entire population (33,476,688) at that time. The shift from agriculture to industrialization has been identified as one of the factors contributing to decline in rural population in Canada (Statistics Canada, 2013).
The advent of Industrialization has supported the evolutionary change in agricultural practices. Generally, agricultural practices in Canada have evolved from labour intensive to capital intensive. With the use of ...view middle of the document...
Rural Saskatchewan has experienced large out-migration in the past four decades (see figure 1.1). This out-migration has led to a significant decline in economic activities as the numbers of people remaining in most of these areas are too small to support most economic activities. Most rural businesses have been closed down as well as public service sectors such as schools and hospitals. The younger farmers have relocated to larger cities leaving the rural population to older farmers. The average age of farm operators in Saskatchewan has increased significantly in the last 20 years. In 2011, 54.4% of the farm operators in Saskatchewan are 55 and older and the average age of a farmer operator is 54.2 years.
Most of the rural communities in Saskatchewan are malnourished economically and population wise while the cities are becoming more robust in these two aspects. It is therefore important to find a way to resuscitate the rural areas with the right nutrients. One of the ways to achieve this is by creating off-farm employments for rural settlers. It was noted in 2011 that 30% of the farm operators who are below the age of 35 are involved in off farm work for more than 40hours a week (Statistics Canada, 2012).
Furthermore, rural manufacturing has been identified as one of the few viable sectors for rural development (Freshwater, 2003; Rothwell and Bollman, 2011). Based on this claim, entrepreneurship tailored towards rural manufacturing may serve as a possible ingredient in the revitalization of rural Saskatchewan.
According to Petrin, (1994), entrepreneurship has been observed to be a driving force to the sustainability of a healthy economic environment as well as improving the quality of life of an individual, families and communities. Henderson (2002), buttressed this claim by noting that entrepreneurship can serve as a means of creating local jobs, local income increment and as an instrument that can connect a community to a larger, worldwide economy.
The success of an entrepreneur in a specific location lies within the web of interrelated factors that are general and specific in nature. Just as the entrepreneur is important in the development of a rural area, so is the community important in the survival of a rural entrepreneur. According to Yu et al., (2011) the survival of a business depends on the stability and healthy development of the local economy. Any rural government that encourages the supply of entrepreneurs through...