Senthil Vinayagam S

Entrepreneurial Behaviour of Agri-Business Operators in Kerala - Vellanikkara Department of Agricultural Extension, College of Horticulture 1998



A study was conducted with the main objectives of developing index for
measuring entrepreneurial behaviour and agri-business performance and identifying
influence of behavioural and situational characteristics on entrepreneurial
behaviour.
The study was undertaken in Central NARP zone of Kerala, covering 240
agri-business operators. The agri-business operators were categorised into three
groups viz., commercial farmers, on-farm and off-farm agri-business operators with
120, 60, 60 as sample size respectively.
Entrepreneurial behaviour formed the dependent variable for the study.
Agri-business performance was selected as criterion variable. Nineteen independent
variables were selected in relation to the objectives based on review of literature and
pilot study. Correlation analysis, principal component analysis and factor analysis
were employed for data analysis and interpretation.
Ten dimensions were identified and used to develop entrepreneurial
behaviour index. Factor analysis revealed that innovation proneness, achievement
motivation, risk orientation, economic motivation, management orientation and
personal efficacy were the important dimensions to measure entrepreneurial
behaviour which can be grouped into a single factor termed 'entrepreneurial
behaviour efficiency' .
Agri-business performance was measured usmg the indicators VIZ.,
capacity utilisation, hired labour, cost-benefit ratio, perceived profitability, labour
relationship, extent of diversification and social contribution from enterprise.



Majority of the respondents exhibited moderate to very high
entrepreneurial behaviour, whereas they had high to very high agri-business
performance. Comparison of the three categories of respondents revealed that there
was no difference among them with respect to both entrepreneurial behaviour and
agri-business performance.
Age, age at entry, scientific orientation, vocational diversification, self
confidence, self concept, orientation towards competition, rational orientation, self:'
reliance and media utilisation emerged as most important variables in predicting the
variation in entrepreneurial behaviour of agri-business operators.
High rate of interest, seasonality of demand, high cost of raw material,
scarcity of electric power, high labour cost, ineffective consultancy service provided
by the government agencies were the major constraints perceived by agri-business
operators in influencing the entrepreneurial behaviour.
The study established the relationship between entrepreneurial behaviour
and agri-business performance which brings out the need and importance for
organising Entrepreneurship Development Programme for farmer entrepreneurs.


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