1- Bu-Ali Sina University
2- Seed and Plant Improvement Institute
2- Seed and Plant Improvement Institute
Abstract: (237 Views)
Introduction and Purpose: In recent decades, rural tourism has emerged as one of the most effective approaches for sustainable development, local employment generation, poverty alleviation, and preservation of cultural and natural assets in rural areas. By leveraging local capacities, cultural attractions, and natural resources, rural tourism serves as an effective tool for the economic and social empowerment of rural communities. However, the development of rural tourism in many countries, particularly in Iran, faces challenges such as limited financial resources, weak infrastructure, and lack of institutional support. In this context, angel investment, as a flexible, timely, and incentive-driven funding source, can play a crucial role in the establishment and growth of rural tourism ventures. Unlike institutional investors, angel investors not only provide financial support but also offer managerial experience, networks, and strategic guidance to entrepreneurs. Recent research indicates that the behavior and decision-making of angel investors are influenced not only by financial evaluation but also significantly by personality traits, non-financial motivations, and even cognitive biases. Moreover, in rural tourism, cultural, social, and environmental factors may also play an important role in shaping investment behavior. Despite this, few studies have comprehensively analyzed the simultaneous role of economic, motivational, psychological, and environmental factors in angel investors’ investment intentions. Therefore, the primary objective of the present study is to identify and analyze the factors influencing angel investors’ intention to invest in rural tourism entrepreneurial projects. Based on an extensive literature review and previous studies, a conceptual model with six key constructs—including idea value, economic feasibility of the project, incentives and motivations, personality traits, perceptual biases, and environmental barriers—was developed and empirically tested.
Materials and Methods: This study is applied in purpose and quantitative in nature, adopting a descriptive–analytical approach. To test the conceptual model, structural equation modeling with partial least squares (SEM-PLS) was used, which is suitable for relatively small samples and complex models. The population included angel investors, active micro-investors in tourism, and entrepreneurs with informal investment experience in rural ventures. Data were collected through a researcher-developed questionnaire, and after screening, 100 valid questionnaires were analyzed. Content validity was confirmed through expert panel review, and reliability was assessed using Cronbach’s alpha and composite reliability indices. For data analysis, the measurement model was first evaluated for validity and reliability. The structural model fit was then assessed using the SRMR index. Additionally, R² and Q² indicators were calculated to evaluate the model’s predictive capability. Finally, hypotheses were tested using the bootstrap method.
Findings: Quantitative analysis revealed that among the six studied variables, four—idea value, incentives and motivations, personality traits, and perceptual biases—had a significant effect on angel investors’ intention to invest in rural tourism. Idea value emerged as one of the most influential factors in investment decisions. Key evaluation criteria for angels included innovation, alignment of the idea with cultural–environmental capacities of the village, potential for social value creation, and local impact. These findings align with prior studies emphasizing that intrinsic and innovative idea value plays a central role in initial screening. Incentives and motivations, both financial and non-financial, also showed positive and significant effects. Non-financial motivations, such as contributing to rural development, gaining social recognition, enjoyment from participating in the entrepreneurial process, and learning opportunities, play a crucial role in angels’ decision-making. Personality traits of angel investors were the strongest predictor of investment behavior; traits such as conscientiousness, emotional stability, openness to experience, and extraversion were most influential in their willingness to invest. In contrast, perceptual biases had a significant negative effect. Over-optimism, overconfidence, or reliance on limited experience can impair accurate risk assessment and reduce investment intention. On the other hand, economic feasibility and project profitability, as well as environmental barriers, were not significant, which contrasts with classical financial theory but aligns with recent research suggesting that in early-stage investments, motivational and psychological factors outweigh financial indicators. It also appears that Iranian angel investors, when facing risky and opaque rural tourism environments, rely more on intuition, personal values, and social motivations than on economic analyses.
Conclusion: The study’s findings indicate that decision-making by angel investors in rural tourism in Iran is multidimensional, individual-centered, and motivation-driven. Contrary to economic models that emphasize profitability and environmental conditions, the present results highlight the dominant role of personality traits, multi-level motivations, idea value, and perceptual biases in shaping investment intention. Therefore, the prevailing perspective in this domain should shift from “purely financial models” to “behavioral–motivational models.” From a practical standpoint, the results provide valuable guidance for policymakers and rural development managers. Designing non-financial incentives, establishing local angel networks, providing specialized training on the tourism market, reducing environmental uncertainty, and generating innovative project ideas can enhance angel investors’ participation. Entrepreneurs can also increase their chances of attracting investment by strengthening idea value, clarifying social objectives, and establishing effective communication with angels. Overall, this study offers a comprehensive, literature-based model that addresses gaps in angel investment research in rural tourism and proposes new pathways for development in this field.
Materials and Methods: This study is applied in purpose and quantitative in nature, adopting a descriptive–analytical approach. To test the conceptual model, structural equation modeling with partial least squares (SEM-PLS) was used, which is suitable for relatively small samples and complex models. The population included angel investors, active micro-investors in tourism, and entrepreneurs with informal investment experience in rural ventures. Data were collected through a researcher-developed questionnaire, and after screening, 100 valid questionnaires were analyzed. Content validity was confirmed through expert panel review, and reliability was assessed using Cronbach’s alpha and composite reliability indices. For data analysis, the measurement model was first evaluated for validity and reliability. The structural model fit was then assessed using the SRMR index. Additionally, R² and Q² indicators were calculated to evaluate the model’s predictive capability. Finally, hypotheses were tested using the bootstrap method.
Findings: Quantitative analysis revealed that among the six studied variables, four—idea value, incentives and motivations, personality traits, and perceptual biases—had a significant effect on angel investors’ intention to invest in rural tourism. Idea value emerged as one of the most influential factors in investment decisions. Key evaluation criteria for angels included innovation, alignment of the idea with cultural–environmental capacities of the village, potential for social value creation, and local impact. These findings align with prior studies emphasizing that intrinsic and innovative idea value plays a central role in initial screening. Incentives and motivations, both financial and non-financial, also showed positive and significant effects. Non-financial motivations, such as contributing to rural development, gaining social recognition, enjoyment from participating in the entrepreneurial process, and learning opportunities, play a crucial role in angels’ decision-making. Personality traits of angel investors were the strongest predictor of investment behavior; traits such as conscientiousness, emotional stability, openness to experience, and extraversion were most influential in their willingness to invest. In contrast, perceptual biases had a significant negative effect. Over-optimism, overconfidence, or reliance on limited experience can impair accurate risk assessment and reduce investment intention. On the other hand, economic feasibility and project profitability, as well as environmental barriers, were not significant, which contrasts with classical financial theory but aligns with recent research suggesting that in early-stage investments, motivational and psychological factors outweigh financial indicators. It also appears that Iranian angel investors, when facing risky and opaque rural tourism environments, rely more on intuition, personal values, and social motivations than on economic analyses.
Conclusion: The study’s findings indicate that decision-making by angel investors in rural tourism in Iran is multidimensional, individual-centered, and motivation-driven. Contrary to economic models that emphasize profitability and environmental conditions, the present results highlight the dominant role of personality traits, multi-level motivations, idea value, and perceptual biases in shaping investment intention. Therefore, the prevailing perspective in this domain should shift from “purely financial models” to “behavioral–motivational models.” From a practical standpoint, the results provide valuable guidance for policymakers and rural development managers. Designing non-financial incentives, establishing local angel networks, providing specialized training on the tourism market, reducing environmental uncertainty, and generating innovative project ideas can enhance angel investors’ participation. Entrepreneurs can also increase their chances of attracting investment by strengthening idea value, clarifying social objectives, and establishing effective communication with angels. Overall, this study offers a comprehensive, literature-based model that addresses gaps in angel investment research in rural tourism and proposes new pathways for development in this field.
Keywords: Multi-level Motivations, Investment Decision-Making, Rural Sustainable Development, Cognitive Biases, Participation Intention, Structural Equation Modeling (SEM), Personality Traits
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