Determinants of smallholders’ entrepreneurial drive, willingness and ability to expand farming operations in KwaZulu-Natal

Cele, Lungelo; Wale, Edilegnaw

doi:10.1080/09614524.2020.1764501

Cited by 17 publications

(25 citation statements)

References 16 publications

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“…Whereas individuals with less education and in debt tend to stay behind to work on farms. Moreover, the findings of this study suggest that the younger population often do not want to engage in farming activities, as they do not see it as rewarding, results consistent with Cele and Wale's (2020) research conducted in the Nigerian context. To raise the status and income of SMEs, agritourism and other farms of diversification can help, provided the government address the structural issues (such as adequate security arrangements and infrastructures) for the hosts and the guests, as raised by the respondents in this study.…”

Section: Discussionsupporting

confidence: 84%

“…The findings exhibit that income from farming activities is inversely related to the poverty status of the household. Nevertheless, household income can positively influence farmers' willingness to expand (Cele and Wale, 2020; Jensen et al , 2015; Sandhu, 2020; Wang et al , 2020). This shows that as the income from farming activities increases, the probability of exiting poverty increases.…”

Section: Discussionmentioning

confidence: 99%

“…Entrepreneurship, innovation and productivity amongst farmers, are dependent on farm size, land quality, labour and capital (Cele and Wale, 2020;Igwe et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

“…Entrepreneurship, innovation and productivity amongst farmers, are dependent on farm size, land quality, labour and capital (Cele and Wale, 2020; Igwe et al , 2020). The resource based view is that the owner/manager's experience, network, skills and the land size of farmers affect their access to external finance, information and knowledge that contributes towards the success of the farmers' economic and strategic growth (Barbieri and Mshenga, 2008; Phelan and Sharpley, 2012).…”

Section: Introductionmentioning

confidence: 99%

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Entrepreneurship the mediating role of finance and entrepreneurial education for small farmers in developing countries: evidence from India

Sandhu

Hussain

2021

IJEBR

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PurposeThis paper investigates the mediating role of access to finance and entrepreneurial education for small and marginal farmers (SMFs) in the Indian northern state of Punjab. Furthermore, it examines the inter-mediatory role of entrepreneurs and the access to finance in the promotion of innovation, development and consequently poverty alleviation.Design/methodology/approachTo gain a deeper insight, we used a purposive sampling technique, involving in-depth, face-to-face interviews based on a semi-structured questionnaire amongst 185 farmers from the state of the Punjab in India. The combination of open ended and dichotomous questions amenable to the Likert scale, captured responses and the transcribed questionnaires were thematically analysed.FindingsUsing the analysis of the quantitative and qualitative responses, we explain the cause and consequences of the finance gap and the impact of poverty on household income and the debt levels of SMFs. The findings suggest that the expanding pool of SMFs is due to land ownership fragmentation that disenfranchises SMFs from accessing adequate finance thus limiting their ability to adapt to technological innovations, and therefore limiting their productivity and growth. This essentially limits their ability to transform their economic and social wellbeing. The findings from the data analysis suggest a lack of access to finance negatively impacts on SMFs' ability to use innovative practices, technologies and productivity. This adversely affects income level, access to education and social goods to propel them out of poverty. The findings advocate that government policy should focus on land reforms, which provide adequate access to finance to enable the adaption of technology and an access to markets to empower marginal farmers.Research limitations/implicationsLand fragmentation resulting with population growth in emerging economies continuously expands SMFs. To improve efficiency, productivity and entrepreneurial traits amongst SMFs, it is a pre-requisite to have an agile economy. However, in emerging economies such as India, the responses of 185 farmers suggest, a bespoke policy to promote the interest of SMFs through enabling them access to finance, technologies, training and education, continues to prove elusive. This novel empirical research provides evidence that demands that policymakers, commercial institutions and donors need to respond to the needs of SMFs to ensure food security and an optimal utilisation of farmland. The limitation of this research is that the sample is from one country, which limits its generalisation. The findings of this study could be enhanced by conducting comparative studies in other regions or economies.Originality/valueThis empirical study examined the barriers to enterprise for SMFs in the Indian Punjab; it examined the causes and consequences and the implications for food security for India. The findings of this study highlight the importance of developing the entrepreneurial capabilities of SMFs through effective education, training and above all through an adequate access to finance to enable them to adapt their technology. Furthermore, the findings make a case as to why SMFs are an integral part of the food chain and why it is necessary to enhance their efficiency, productivity and their access to finance.

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Section: Discussionsupporting

confidence: 84%

Section: Discussionmentioning

confidence: 99%

“…Entrepreneurship, innovation and productivity amongst farmers, are dependent on farm size, land quality, labour and capital (Cele and Wale, 2020;Igwe et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Entrepreneurship the mediating role of finance and entrepreneurial education for small farmers in developing countries: evidence from India

Sandhu

Hussain

2021

IJEBR

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“…Secondly, unlike previous studies on on-farm entrepreneurship (Sinyolo et al, 2017;Cele and Wale, 2020) that used the stated preference method, prone to strategic and hypothetical biases (Carlsson, 2010), this study adopts the revealed preference (RP) method to assess entrepreneurial behaviour. While it serves as a means of cross-validating the SP results, the RP is based on the use of the observed behaviour of people when faced with real life circumstances (Bateman et al, 2002).…”

Section: Introductionmentioning

confidence: 99%

A Behavioural Explanation of Smallholder Entrepreneurship with Empirical Evidence from KwaZulu-Natal, South Africa

Zaca¹,

Wale²,

Chipfupa³

2021

Preprint

Self Cite

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This study aimed to investigate the impact of social grant dependence on on-farm entrepreneurial spirit of smallholders. A sample of 175 farmers was obtained from two communities in KwaZulu-Natal. The study employed Principal Components Analysis and Tobit regression. The entrepreneurial spirit indices were constructed from revealed preference-based questions. The study found a positive relationship between the social grant and on-farm entrepreneurial spirit. The positive impact on rural household farming activities implies that the prevailing low entrepreneurial levels among farmers are not the result of social grant dependence but lack of opportunity and other resource constraints. However, to remain effective, policy should ensure that the grant money benefits (directly/indirectly) the intended beneficiary and their households. The other factors found to be associated with on-farm entrepreneurship include age of the farmer, gender, psychological capital, access to training, access to education, access to land, inadequate farming assets, water insecurity, extension, off-farm income and group membership. The study also recommends the need for strategies that improve psychological capital and thus enhance positive on-farm entrepreneurial behaviour among smallholder farmers. Addressing institutional and farming constraints related to access to resources and services (land, credit, extension, and water) and collective action will positively contribute to on-farm entrepreneurship.

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Experiential Learning in Entrepreneurship Education for Sustainable Agricultural Development: A Bibliometric Analysis

Mujuru

Hyams–Ssekasi

Mushunje

2022

Entrepreneurship and Change

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Determinants of smallholders’ entrepreneurial drive, willingness and ability to expand farming operations in KwaZulu-Natal

Cited by 17 publications

References 16 publications

Entrepreneurship the mediating role of finance and entrepreneurial education for small farmers in developing countries: evidence from India

Entrepreneurship the mediating role of finance and entrepreneurial education for small farmers in developing countries: evidence from India

A Behavioural Explanation of Smallholder Entrepreneurship with Empirical Evidence from KwaZulu-Natal, South Africa

Experiential Learning in Entrepreneurship Education for Sustainable Agricultural Development: A Bibliometric Analysis

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