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Farmer Entrepreneurship & their Social Context
Evidence from Emerging Economies
Dr. Domenico Dentoni, Associate Professor in Agribusiness Management
Business Management & Organization Group, Wageningen University
Photo credit: Global Forum on Ag Research (GFAR) 2017.
2nd International Conference of Agriculture and Life Sciences | Tirana, Albania, May 7-8, 2018
Key assumptions in current policy and agribusiness debate:
FARMER OR AG-ENTREPRENEURSHIP
(i.e. agricultural/rural entrepreneurship) as a key solution for:
ECONOMIC GROWTH; SOCIAL EQUITY; CLIMATE RESILIENCE
Challenging assumptions on Ag-entrepreneurship
Still open questions that we address here:
1 à WHAT exactly is AG-ENTREPRENEURSHIP?
2 à WHEN are farmers more likely to be entrepreneurial?
3 à HOW do rural YOUTH become entrepreneurial?
4 à WHY studying ag-entrepreneurship has implications?
What is ag-entrepreneurship in emerging
economies?
Photo credit: La Linea Verde (2017).
What is ag-entrepreneurship in emerging
economies?
What is ag-entrepreneurship in emerging
economies?
What is Agri-entrepreneurship vs. Innovation?
Starting a NEW
BUSINESS
Developing a NEW
PRODUCT; Using a
NEW TECHNOLOGY
Building a NEW
MARKET
CHANNEL
ENTREPRENEURIAL ORIENTATION, LEARNING
AND PROCESSES WITH EXISTING (= not new)
BUSINESSES, MARKETS, TECHNOLOGIES
Entrepreneurship (Shane & Venkataraman 2000) =
recombining resources innovatively to seize opportunities for
value creation.
…NOT ONLY IN-
FARM, BUT ALSO
AROUND AND
COMPLEMENTARY
TO FARMING!
What is Agri-entrepreneurship vs. Innovation?
INNOVATION
More visible & easier to
measure:
Starting a NEW BUSINESS;
Developing a NEW
PRODUCT; Using a NEW
TECHNOLOGY; Building a
NEW MARKET CHANNEL
ENTREPRENEURSHIP
More latent & more difficult to
measure:
ENTREPRENEURIAL
ORIENTATION, LEARNING
AND PROCESSES WITH
EXISTING BUSINESSES,
MARKETS, TECHNOLOGIES
What is ag-entrepreneurship outside the West?
Authors: Lai, Dentoni, Chan, Neyra (published in 2017)
Data: survey with 386 youth taking ag-entrepreneurship training in The Philippines (2013-2014).
Analysis: Confirmatory Factor Analysis.
Photo credit: Dr. Cynthia Lai (2016).
Innovativeness
Proactivity	or	
Autonomy
Farmers’	
Entrepreneurial	
Orientation
Risk-taking
+
+
+
What is ag-entrepreneurship outside the West?
Authors: Lai, Dentoni, Chan, Neyra (published in 2017)
Data: survey with 386 youth taking ag-entrepreneurship training in The Philippines (2013-2014).
Analysis: Confirmatory Factor Analysis.
Key Finding: differently from Western ag-entrepreneurs,
need for achievement does not reflect entrepreneurial
orientation in rural Philippines à ag-entrepreneurship
reflects different mindsets in different social contexts.
Need	for	
achievement
Farmers’	
Entrepreneurial	
Orientation
+
Proactivity	or	
Autonomy
Risk-taking
Innovativeness
+
+
+
Western-based
measurement
model
RMSEA = 0,082
Locally adapted
measurement
model
RMSEA = 0,033
Authors: Barzola, Dentoni, Mordini, Isubikalu et al. (published in 2018)
Data: survey with 152 coffee and honey farmers in Uganda (2016)
Analysis: Confirmatory Factor Analysis; Multiple Linear Regressions.
What is ag-entrepreneurship vs. Innovation?
Innovativeness
Proactivity	or	
Autonomy
Farmers’	
Entrepreneurial	
OrientationFarm	size
Farmers’	
Market	
Innovation
Risk-taking
Education
Farmers’
Product	
Innovation
Farmers’	
Process	
Innovation
+
+
+
+***
+***
What is ag-entrepreneurship vs. Innovation?
+**
+*
Authors: Barzola, Dentoni, Mordini, Isubikalu et al. (published in 2018)
Data: survey with 152 coffee and honey farmers in Uganda (2016)
Analysis: Confirmatory Factor Analysis; Multiple Linear Regressions.
Key Findings: 1) Innovative farmers with small
farm size & 2) proactive farmers with large farm
size are most likely to innovate.
Access	to	
resources
Farmers’	
Innovation
+**
+ +
+
+**
+**
-**
When people are more likely to be(come)
ag-entrepreneurial?
When are farmers entrepreneurial?
Authors: Xhoxhi, Imami, Skreli, Dentoni (working paper)
Data: survey with 200+ citrus farmers in Albania (2017).
Analysis: Structural Equation Modelling
Photo credit: AgroWeb (2017).
Innovativeness
Proactivity	or	
Autonomy
Farmers’	
Entrepreneurial	
Orientation
Access	to	
unused	
arable	land
Reciprocity
Risk-taking
Reputation
Trust
Age
+
+
+
+***
+**
+*
When are farmers entrepreneurial?
+***
+**
-***
Authors: Xhoxhi, Imami, Skreli, Dentoni (working paper)
Data: survey with 200+ citrus farmers in Albania (2017).
Analysis: Structural Equation Modelling
Key Findings: 1) youth have more
entrepreneurial orientation; 2) but age
builds trust; 3) and trust fosters
entrepreneurial orientation.
When are farmers entrepreneurial?
Authors: Barzola, Dentoni, Van der Slikke, Isubikalu et al. (under review)
Data: Semi-structured interviews with 36 coffee farmers and informants in Uganda (2016).
Analysis: Value Network Analysis; Cluster Analysis.
When are farmers entrepreneurial?
Authors: Barzola, Dentoni, Van der Slikke, Isubikalu et al. (under review)
Data: Semi-structured interviews with 36 coffee farmers and informants in Uganda (2016).
Analysis: Value Network Analysis; Cluster Analysis.
Cluster 1: Young
male farmers
Cluster 2: Elder female
farmers
Cluster 3: Middle-age male
farmers
34 years avg. 66 years avg. 52 years avg.
Mostly highlands Mostly midlands Mostly lowlands
<0,5 acres 0,5 < acres < 2,5 2,5 < acres
Low resource
diversification
High resource
reciprocity
(through cooperatives)
Low resource reciprocity; high
resource diversification
Constraints in finance,
market info &
knowledge.
Constraints in finance
and ag inputs.
Rapid growth: increased
access to banks, urban and
niche export markets.
Key Findings: geographic location, farm size and
resource diversification plays a critical role in
entrepreneurial outcomes.
How rural youth become more ag-
entrepreneurial?
How do rural youth become entrepreneurial?
Authors: Ochago, Dentoni, Lans, Trienekens (on-going research)
Data: Survey and interviews with 200+ coffee farmers in Uganda (2018).
Analysis: Structural Equation Modelling; Content analysis
Ag-
Entrepreneurial	
Experience
Ag-
Entrepreneurial	
Knowledge
Experimenting
Sense-making
Family resource
endowments
Dominant
community logics
Collectivism
Land stewardship
Land ownership
Family education
Social capital
Value networks
+/-
+
Key Hypotheses: 1) Family resource
endowments may trigger youth
entrepreneurial learning; 2) yet
dominant community logics,
depending on circumstances, may
hamper or support learning.
How do rural youth become entrepreneurial?
Authors: Afari-Kwarteng, Dentoni, Lubberink, Lans (working paper)
Data: Interviews with 47 rural community members in Ghana (2017).
Analysis: Qualitative Analysis of Critical Incidents.
How do rural youth become entrepreneurial?
Authors: Afari-Kwarteng, Dentoni, Lubberink, Lans (working paper)
Data: Interviews with 47 rural community members in Ghana (2017).
Analysis: Qualitative Analysis of Critical Incidents.
Entrepreneurial
processes:
-Idea generation
-Idea incubation
-Idea championing
-Idea implementation
Community
organization:
-Social capital (trust
and social networks)
-Governance
structures (knowledge-
sharing, decision-
making, enforcement)
External poverty
reduction
initiatives
Influencing	through	resource	access	&	peer	pressure
Developing	new	routines	&	giving	new	examples
Key Findings: 1) Community
organization and youth
individual entrepreneurial
processes challenged each
other; 2) External poverty
reduction initiatives
strengthened community yet
hampered individual
entrepreneurship.
Why this ag-entrepreneurship research has implications?
Photo credit: United Nations Albania 2018.
Why ag-entrepreneurship research has implications?
Ag-entrepreneurship in emerging economies may:
• Fuel product, process and market innovation.
• Support adaptation and resilience in turbulent contexts.
• Empower youth and marginalized actors in communities.
Yet, ag-entrepreneurship can create serious misunderstandings among
donors, policy-makers and managers :
• Meaning of ag-entrepreneurship differs across social contexts;
Donors, policy-makers and managers need to:
Ø Understand the different meanings that stakeholders give to
ag-entrepreneurship BEFORE new interventions.
Ø Collectively create a common understanding of ag-
entrepreneurship in DURING new interventions.
High risk of making powerful actors more powerful:
● Actors with larger farms and access to unused land;
● Actors with richer family endowments (education, finance, value networks);
● Elderly in relation to trust and social networks in communities;
● Actors embracing leading dominant community logics.
Donors, policy-makers and managers need to:
Ø Agree (or agree to disagree) on which specific rural actors will take
advantage through ag-entrepreneurship and which effects they generate.
Ø Systematically understand these power structures BEFORE interventions.
Why ag-entrepreneurship research has implications?
We invite you to engage on global debate on the
what, when, how and why of ag-entrepreneurship
§ Track on “Entrepreneurship &
Innovation in Emerging Economies”.
§ Conference Wageningen International
Chains & NEtworks Management
(WICANEM).
§ Ancona, Italy, July 2nd-3rd, 2018.
§ Organized every two years by
Wageningen University.
We invite you to engage on global debate on the
what, when, how and why of ag-entrepreneurship
§ Special issue on ”Entrepreneurship
and Innovation in Emerging
Economies”.
§ Sustainability journal (MDPI publisher)
§ Impact factor: 1,79.
§ Call for papers soon online.
§ Deadline January 2019.
We invite you to engage on global debate on the
what, when, how and why of ag-entrepreneurship
§ Special issue on ”New organizational
forms in emerging economies”.
§ Journal of Agribusiness in Developing
and Emerging Economies
§ Clarivate emerging citation index
§ 10 co-guest editors worldwide.
§ Call for papers soon online.
§ Deadline December 2018.
Faleminderit! Questions?
Happy to engage further in person or feel free to contact:
Dr. Domenico Dentoni, Business Management & Organization Group, Wageningen University
domenico.dentoni@wur.nl

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Farmer entrepreneurship and their social context

  • 1. Farmer Entrepreneurship & their Social Context Evidence from Emerging Economies Dr. Domenico Dentoni, Associate Professor in Agribusiness Management Business Management & Organization Group, Wageningen University Photo credit: Global Forum on Ag Research (GFAR) 2017. 2nd International Conference of Agriculture and Life Sciences | Tirana, Albania, May 7-8, 2018
  • 2. Key assumptions in current policy and agribusiness debate: FARMER OR AG-ENTREPRENEURSHIP (i.e. agricultural/rural entrepreneurship) as a key solution for: ECONOMIC GROWTH; SOCIAL EQUITY; CLIMATE RESILIENCE Challenging assumptions on Ag-entrepreneurship Still open questions that we address here: 1 à WHAT exactly is AG-ENTREPRENEURSHIP? 2 à WHEN are farmers more likely to be entrepreneurial? 3 à HOW do rural YOUTH become entrepreneurial? 4 à WHY studying ag-entrepreneurship has implications?
  • 3. What is ag-entrepreneurship in emerging economies? Photo credit: La Linea Verde (2017).
  • 4. What is ag-entrepreneurship in emerging economies?
  • 5. What is ag-entrepreneurship in emerging economies?
  • 6. What is Agri-entrepreneurship vs. Innovation? Starting a NEW BUSINESS Developing a NEW PRODUCT; Using a NEW TECHNOLOGY Building a NEW MARKET CHANNEL ENTREPRENEURIAL ORIENTATION, LEARNING AND PROCESSES WITH EXISTING (= not new) BUSINESSES, MARKETS, TECHNOLOGIES Entrepreneurship (Shane & Venkataraman 2000) = recombining resources innovatively to seize opportunities for value creation. …NOT ONLY IN- FARM, BUT ALSO AROUND AND COMPLEMENTARY TO FARMING!
  • 7. What is Agri-entrepreneurship vs. Innovation? INNOVATION More visible & easier to measure: Starting a NEW BUSINESS; Developing a NEW PRODUCT; Using a NEW TECHNOLOGY; Building a NEW MARKET CHANNEL ENTREPRENEURSHIP More latent & more difficult to measure: ENTREPRENEURIAL ORIENTATION, LEARNING AND PROCESSES WITH EXISTING BUSINESSES, MARKETS, TECHNOLOGIES
  • 8. What is ag-entrepreneurship outside the West? Authors: Lai, Dentoni, Chan, Neyra (published in 2017) Data: survey with 386 youth taking ag-entrepreneurship training in The Philippines (2013-2014). Analysis: Confirmatory Factor Analysis. Photo credit: Dr. Cynthia Lai (2016).
  • 9. Innovativeness Proactivity or Autonomy Farmers’ Entrepreneurial Orientation Risk-taking + + + What is ag-entrepreneurship outside the West? Authors: Lai, Dentoni, Chan, Neyra (published in 2017) Data: survey with 386 youth taking ag-entrepreneurship training in The Philippines (2013-2014). Analysis: Confirmatory Factor Analysis. Key Finding: differently from Western ag-entrepreneurs, need for achievement does not reflect entrepreneurial orientation in rural Philippines à ag-entrepreneurship reflects different mindsets in different social contexts. Need for achievement Farmers’ Entrepreneurial Orientation + Proactivity or Autonomy Risk-taking Innovativeness + + + Western-based measurement model RMSEA = 0,082 Locally adapted measurement model RMSEA = 0,033
  • 10. Authors: Barzola, Dentoni, Mordini, Isubikalu et al. (published in 2018) Data: survey with 152 coffee and honey farmers in Uganda (2016) Analysis: Confirmatory Factor Analysis; Multiple Linear Regressions. What is ag-entrepreneurship vs. Innovation?
  • 11. Innovativeness Proactivity or Autonomy Farmers’ Entrepreneurial OrientationFarm size Farmers’ Market Innovation Risk-taking Education Farmers’ Product Innovation Farmers’ Process Innovation + + + +*** +*** What is ag-entrepreneurship vs. Innovation? +** +* Authors: Barzola, Dentoni, Mordini, Isubikalu et al. (published in 2018) Data: survey with 152 coffee and honey farmers in Uganda (2016) Analysis: Confirmatory Factor Analysis; Multiple Linear Regressions. Key Findings: 1) Innovative farmers with small farm size & 2) proactive farmers with large farm size are most likely to innovate. Access to resources Farmers’ Innovation +** + + + +** +** -**
  • 12. When people are more likely to be(come) ag-entrepreneurial?
  • 13. When are farmers entrepreneurial? Authors: Xhoxhi, Imami, Skreli, Dentoni (working paper) Data: survey with 200+ citrus farmers in Albania (2017). Analysis: Structural Equation Modelling Photo credit: AgroWeb (2017).
  • 14. Innovativeness Proactivity or Autonomy Farmers’ Entrepreneurial Orientation Access to unused arable land Reciprocity Risk-taking Reputation Trust Age + + + +*** +** +* When are farmers entrepreneurial? +*** +** -*** Authors: Xhoxhi, Imami, Skreli, Dentoni (working paper) Data: survey with 200+ citrus farmers in Albania (2017). Analysis: Structural Equation Modelling Key Findings: 1) youth have more entrepreneurial orientation; 2) but age builds trust; 3) and trust fosters entrepreneurial orientation.
  • 15. When are farmers entrepreneurial? Authors: Barzola, Dentoni, Van der Slikke, Isubikalu et al. (under review) Data: Semi-structured interviews with 36 coffee farmers and informants in Uganda (2016). Analysis: Value Network Analysis; Cluster Analysis.
  • 16. When are farmers entrepreneurial? Authors: Barzola, Dentoni, Van der Slikke, Isubikalu et al. (under review) Data: Semi-structured interviews with 36 coffee farmers and informants in Uganda (2016). Analysis: Value Network Analysis; Cluster Analysis. Cluster 1: Young male farmers Cluster 2: Elder female farmers Cluster 3: Middle-age male farmers 34 years avg. 66 years avg. 52 years avg. Mostly highlands Mostly midlands Mostly lowlands <0,5 acres 0,5 < acres < 2,5 2,5 < acres Low resource diversification High resource reciprocity (through cooperatives) Low resource reciprocity; high resource diversification Constraints in finance, market info & knowledge. Constraints in finance and ag inputs. Rapid growth: increased access to banks, urban and niche export markets. Key Findings: geographic location, farm size and resource diversification plays a critical role in entrepreneurial outcomes.
  • 17. How rural youth become more ag- entrepreneurial?
  • 18. How do rural youth become entrepreneurial? Authors: Ochago, Dentoni, Lans, Trienekens (on-going research) Data: Survey and interviews with 200+ coffee farmers in Uganda (2018). Analysis: Structural Equation Modelling; Content analysis Ag- Entrepreneurial Experience Ag- Entrepreneurial Knowledge Experimenting Sense-making Family resource endowments Dominant community logics Collectivism Land stewardship Land ownership Family education Social capital Value networks +/- + Key Hypotheses: 1) Family resource endowments may trigger youth entrepreneurial learning; 2) yet dominant community logics, depending on circumstances, may hamper or support learning.
  • 19. How do rural youth become entrepreneurial? Authors: Afari-Kwarteng, Dentoni, Lubberink, Lans (working paper) Data: Interviews with 47 rural community members in Ghana (2017). Analysis: Qualitative Analysis of Critical Incidents.
  • 20. How do rural youth become entrepreneurial? Authors: Afari-Kwarteng, Dentoni, Lubberink, Lans (working paper) Data: Interviews with 47 rural community members in Ghana (2017). Analysis: Qualitative Analysis of Critical Incidents. Entrepreneurial processes: -Idea generation -Idea incubation -Idea championing -Idea implementation Community organization: -Social capital (trust and social networks) -Governance structures (knowledge- sharing, decision- making, enforcement) External poverty reduction initiatives Influencing through resource access & peer pressure Developing new routines & giving new examples Key Findings: 1) Community organization and youth individual entrepreneurial processes challenged each other; 2) External poverty reduction initiatives strengthened community yet hampered individual entrepreneurship.
  • 21. Why this ag-entrepreneurship research has implications? Photo credit: United Nations Albania 2018.
  • 22. Why ag-entrepreneurship research has implications? Ag-entrepreneurship in emerging economies may: • Fuel product, process and market innovation. • Support adaptation and resilience in turbulent contexts. • Empower youth and marginalized actors in communities. Yet, ag-entrepreneurship can create serious misunderstandings among donors, policy-makers and managers : • Meaning of ag-entrepreneurship differs across social contexts; Donors, policy-makers and managers need to: Ø Understand the different meanings that stakeholders give to ag-entrepreneurship BEFORE new interventions. Ø Collectively create a common understanding of ag- entrepreneurship in DURING new interventions.
  • 23. High risk of making powerful actors more powerful: ● Actors with larger farms and access to unused land; ● Actors with richer family endowments (education, finance, value networks); ● Elderly in relation to trust and social networks in communities; ● Actors embracing leading dominant community logics. Donors, policy-makers and managers need to: Ø Agree (or agree to disagree) on which specific rural actors will take advantage through ag-entrepreneurship and which effects they generate. Ø Systematically understand these power structures BEFORE interventions. Why ag-entrepreneurship research has implications?
  • 24. We invite you to engage on global debate on the what, when, how and why of ag-entrepreneurship § Track on “Entrepreneurship & Innovation in Emerging Economies”. § Conference Wageningen International Chains & NEtworks Management (WICANEM). § Ancona, Italy, July 2nd-3rd, 2018. § Organized every two years by Wageningen University.
  • 25. We invite you to engage on global debate on the what, when, how and why of ag-entrepreneurship § Special issue on ”Entrepreneurship and Innovation in Emerging Economies”. § Sustainability journal (MDPI publisher) § Impact factor: 1,79. § Call for papers soon online. § Deadline January 2019.
  • 26. We invite you to engage on global debate on the what, when, how and why of ag-entrepreneurship § Special issue on ”New organizational forms in emerging economies”. § Journal of Agribusiness in Developing and Emerging Economies § Clarivate emerging citation index § 10 co-guest editors worldwide. § Call for papers soon online. § Deadline December 2018.
  • 27. Faleminderit! Questions? Happy to engage further in person or feel free to contact: Dr. Domenico Dentoni, Business Management & Organization Group, Wageningen University domenico.dentoni@wur.nl