Market Risk Analysis - Microeconomic Aspect of Vegetable Farms in Guri i Zi Administrative Unit, Shkodër in Albania

Abstract

The risk of entrepreneurship in agriculture is complex. The purpose of this study is to identify and analyze the primary market risks that farmers face, which will help them better understand these risks and make informed decisions to mitigate them. The research uses a mixed methodology involving descriptive statistical analysis and multifactorial regression analysis to examine four critical risk factors: changes in consumer preferences, price fluctuations, high competition, and shifts in consumer incomes. The findings show that only high market competition is statistically significant and has a substantial impact of 79%. Farmers can use this information to adjust their production focus towards areas of comparative advantage in a single crop to improve their financial stability. In summary, market risk analysis is an essential tool that empowers farmers to understand and manage risks effectively to safeguard their income streams.