Rural tourism is relatively new product in the process of diversification of the rural
economy in Republic of Macedonia. In the recent years several studies have identified
the entrepreneurs and their motives of engagement in rural tourism accommodation
business. However, none of the previous studies have identified and measured the
factors that influence success of the entrepreneurs in rural tourism. This study used
desk research and life story interviews of rural tourism entrepreneurs as qualitative
research method to identify prevalent success influential factors. Further, quantitative
analysis was applied as second stage of the research in order to measure the strength
of influence of identified success factors. The primary data for the quantitative
research was gathered using telephone questionnaire composed of 37 questions with
5-points Likert scale. The data was analyzed using Partial Least Squares Structural
Equation Modeling (PLS-SEM) by SmartPLS 3.1.6. Results indicated that human
capital, social capital, entrepreneurial personality and external business environment
are predominant influential success factors. However, human capital has nonsignificant
direct effect on success (p 0.493) nonetheless the effect was indirect
with high level of partial mediation through entrepreneurial personality as mediator
(VAF 73%). Personality of the entrepreneur, social capital and business environment
have direct positive affect on entrepreneurial success (p 0.001, 0.003 and 0.045
respectably). Personality also mediates the positive effect of social capital on
entrepreneurial success (VAF 28%). Opposite to the theory the data showed no
interaction between social and human capital on the entrepreneurial success. This
research suggests that rural tourism accommodation entrepreneurs could be more
successful if there is increased support in development of social capital in form of
conservation of cultural heritage and natural attractions. Priority should be finding the
form to encourage and support the establishment of formal and informal associations
of entrepreneurs in order to improve the conditions for management and marketing of
the sector. Special support of family businesses in the early stages of the operation
will also have a particularly positive impact on the success of rural tourism. From the
external business environment most prevalent factors of success would be investment
in local infrastructure, access to the financial instruments and destination marketing.