An Analysis of Collective Entrepreneurship of Smallholder Farmers In Zimbabwe In Realizing Market Opportunities: A Case of Chipinge District

Abstract

The study investigated how collective entrepreneurship by smallholder beef farmers in Chipinge district in Zimbabwe unlocks market opportunities. The sample size consisted of 62beef smallholder farmers, 31members from farmer groups and 31individuals. Thirty-one members were purposively sampled from a census of five beef farmer groups in lower Chipinge while the other half were randomly selected from the same area. All the 62 smallholder farmers were interviewed using a household questionnaire. GET2 Test was used to assess farmers' entrepreneurial behavior. Results showed a higher (p = 0.01)overall entrepreneurial behavior in smallholder farmers in groups than in individual farmers. However, the majority of smallholder farmers (74 percent) operating in groups exhibited medium level of overall entrepreneurial behavior; while most of the farmers operating outside groups (77 percent) demonstrated low level of overall entrepreneurial behavior. Collective action coupled with components of entrepreneurial behavior such as creative tendency and calculated risk helped beef farmers from groups to access formal beef markets in urban areas where transparent grading and pricing systems were guaranteed. By eliminating exploitative middlemen from the supply chain, farmer groups received almost double the prices offered to individual farmers, and paid lower transaction costs as unit costs decrease with increasing volumes. Smallholder farmers who operated outside groups, operated as individuals and could not penetrate formal markets; as a consequence, they ended up selling to local informal markets within their local periphery. It is concluded that collective entrepreneurship helps reduce transaction costs, increase farmers' bargaining power and improve formal market access.