Analysis of factors that motivate small farmers towards agricultural entrepreneurship activities

Abstract

Entrepreneurship is coupled with finding ways and means to create and develop a profitable farm business. The objectives are to identify the factors motivating small farmers to engage in farming and entrepreneurial activities, recognize socio-economic background, detect the involvement of entrepreneurial activities; and investigate opportunities and hindrances of small scale farmer to involve in the agricultural entrepreneurship activities in Batticaloa District. The primary data were obtained through informal interviews and distribution of pre-tested structured questionnaires for 120 farmers. Proportionate stratified random sampling technique was used to collect data from each stratum where respondents from small farmers involved in the cultivation of paddy, vegetables, other crops and aquaculture. Information and data obtained from questionnaires were coded and analyzed in SPSS 22 software. The results revealed that most farmers (77%) sold their farm produce for monetary exchange while only 15% traded the balance after home the consumption. The probit regression analysis has identified that educational level, land and opportunities positively and significantly related to the involvement in the activity of entrepreneurship. Contrastingly, the family size and the age of the key farmer negatively and significantly related to the dependent variable.