Perceptual and sociocultural determinants of agricultural entrepreneurship in developing countries: a GEM data analysis
Ghulam Raza, Muhibul Haq, Raza Ali, Kratzer Jan, Robin Bell, Naveed YasinPurpose
Responding to calls for greater understanding of the behavioural drivers of agricultural entrepreneurship, this study examines how perceptual and sociocultural factors, together with key demographic characteristics, influence individuals' engagement in early-stage agricultural entrepreneurship in developing economies.
Design/methodology/approach
This study uses data from the Global Entrepreneurship Monitor (GEM) Adult Population Survey (2020). Logistic regression analysis is applied to examine the influence of perceptual factors (opportunity perception, fear of failure and entrepreneurial self-efficacy), sociocultural factors (entrepreneurial role models, social status of entrepreneurs, media coverage and entrepreneurship as a desirable career choice) and demographic characteristics (age, gender and household income) on individuals' engagement in early-stage agricultural entrepreneurship across 20 developing countries.
Findings
Findings indicate that entrepreneurial self-efficacy is the only perceptual factor with an independent effect on engagement in agricultural entrepreneurship. When the variables were aggregated into broader perceptual and sociocultural constructs, both constructs were significantly associated with engagement in agricultural entrepreneurship, indicating the relevance of both individual perceptions and the broader sociocultural environment. Analysis also reveals a significant gender difference, with women less likely than men to engage in early-stage agricultural entrepreneurial activity.
Research limitations/implications
Findings indicate that entrepreneurial self-efficacy is the only perceptual factor with an independent effect on engagement in agricultural entrepreneurship. When the variables were aggregated into broader perceptual and sociocultural constructs, both constructs were significantly associated with engagement in agricultural entrepreneurship, indicating the relevance of both individual perceptions and the broader sociocultural environment. Analysis also reveals a significant gender difference, with women less likely than men to engage in early-stage agricultural entrepreneurial activity.
Social implications
Fostering agricultural entrepreneurship could help address poverty, unemployment, and gender disparities in developing countries, as the vast majority are associated with agriculture.
Originality/value
This study contributes to the agricultural entrepreneurship literature by providing empirical evidence on the behavioural drivers of engagement in agricultural entrepreneurship in developing economies. By examining perceptual, sociocultural and demographic determinants using cross-country GEM data, the study advances understanding of the respective roles of individual capabilities and sociocultural environments in agricultural entrepreneurial engagement in agricultural systems where agriculture remains central to rural livelihoods and economic development.