Entrepreneurial behaviour of agri-business operators in Kerala

Abstract

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.