Extended Abstract
Introduction
In recent decades, the role of handicrafts and tourism as two main drivers of economic, cultural, and social development in urban and rural areas has received increasing attention. In Sari and its peri-urban regions, these sectors, leveraging the area’s rich cultural, historical, and natural assets, have the potential to foster entrepreneurship, sustainable employment, and improve quality of life. Handicrafts represent a symbol of cultural identity and local creativity, while tourism, as a dynamic industry, can stimulate economic growth by attracting investment and financial flows to peripheral areas. The interaction between these two sectors creates significant capacity for new job opportunities and sustainable development. However, field studies in Sari indicate that despite the region’s abundant talents, weaknesses in infrastructure, insufficient training for artisans, and a lack of effective marketing hinder the full utilization of these capacities. Therefore, the aim of this study is to explain the factors influencing entrepreneurship and employment generation in the peri-urban areas of Sari and the rural bazaars of Sari.
 
Methodology
The present study employed a descriptive–correlational design with a quantitative approach. Data were collected through a researcher-made questionnaire and semi-structured interviews with 475 domestic and international tourists visiting the handicraft bazaars and tourist attractions of the villages surrounding Sari. The samples were selected using a cluster sampling method over three separate weeks to ensure temporal and spatial diversity. The questionnaire consisted of 45 items on a Likert scale, including 15 items measuring the dependent variable (entrepreneurship and employment generation) and 30 items assessing the independent variable (development of handicrafts and tourism) across six main components: product diversity, quality and innovation in production, market access and marketing, artisan training and empowerment, tourism infrastructure, and promotion and introduction of attractions. The reliability of the instrument was confirmed with a Cronbach’s alpha of 0.92. Data were analyzed using SPSS software through Pearson correlation, multiple regression, and path analysis. The theoretical framework of the study was based on the dynamic process model of Moroz and Hindle (2012) to analyze the dynamic and multifaceted interactions among the variables.
 
Results and discussion
The results showed that there is a positive and significant relationship between the development of handicrafts and tourism and entrepreneurship and employment generation in the peri-urban areas of Sari (r = 0.72, p < 0.01). In other words, any improvement in the conditions of handicrafts and tourism can directly enhance employment levels and entrepreneurial opportunities. Multivariate regression analysis indicated that five of the six main components explain 66% of the variance in entrepreneurship and employment generation. Among these, market access and marketing had the greatest direct effect (Beta = 0.47) on employment generation, while training and empowerment of artisans (Beta = 0.21) and advertising and promotion of attractions (Beta = 0.35) also played prominent roles. Quality and innovation in production had a positive and significant effect (Beta = 0.14), while product diversity had a weak but negative effect (Beta = -0.22) on the dependent variable, reflecting a relative dissatisfaction among tourists regarding the lack of variety or appeal of products. Considering indirect effects, the path analysis model showed that tourism infrastructure indirectly and significantly (0.20) influenced employment generation by enhancing other components. Overall, the greatest total effects were related to market access and marketing (0.58), training and empowerment of artisans (0.39), advertising and promotion of attractions (0.30), tourism infrastructure (0.20), quality and innovation in production (0.13), and finally product diversity (0.10).
From a socio-economic perspective, the findings indicated that increased skill levels, marketing education, and improved advertising facilities directly led to expanded job opportunities and entrepreneurial activity development in the peri-urban areas of Sari. Additionally, a strong linkage between marketing and artisan training as a complementary chain has strengthened the sales of local products nationally and internationally, while weaknesses in advertising and limited product diversity remain constraints to sustainable employment growth in these peri-urban areas.
 
Conclusion
Overall, handicrafts and tourism are complementary pillars of economic and cultural development in the peri-urban areas of Sari. The study showed that effective policies in the three domains of marketing, education, and advertising can yield the highest returns in strengthening employment and entrepreneurship. The most important finding is that market access and marketing are key drivers of the regional economic growth since even high-quality productions cannot create sustainable employment without viable markets. Next, artisan training and professional empowerment improve product quality and diversity, which, together with effective advertising and attraction promotion, can complete the supply and demand cycle in handicraft and tourism markets. Moreover, developing tourism infrastructure such as accommodations, transportation, and information centers indirectly supports market vitality and employment growth. Therefore, to achieve sustainable development in Sari’s peri-urban areas, policymakers must adopt a multidimensional approach simultaneously focused on skill enhancement, product quality improvement, creation of specialized and digital markets, and tourism infrastructure development. Financial support for artisans, digital marketing training, local branding, and the use of geographical indicators to preserve product authenticity are among the other recommended strategies of the study. Ultimately, this research emphasizes that the linkage between handicrafts and tourism is not only a factor for economic growth but also a foundation for preserving cultural heritage, social identity, and environmental sustainability in the peri-urban areas of Sari.
 
Funding
According to the responsible author, this article has no financial support
 
Authors’ Contribution
 
Conflict of Interest
Authors declared no conflict of interest.
 
Acknowledgments
 We are grateful to all the scientific consultants of this paper.