Abstract:
The aim of this study is to explain the determinants of entrepreneurship in agriculture
industry. What are the drivers of early stage entrepreneurial activity of agri-business
entrepreneur and how it is influenced by various cognitive and social capital factors? To
answers these questions various driving factors of entrepreneurial activity have been
explored from the literature. To achieve the objective, the study uses APS (Adult
Population Survey) 2013 data of 69 countries provided by GEM (Global Entrepreneurship
Monitor). Total number of respondents 1470, those who are alone or with others,
currently trying to start a new business, including any self-employment or selling any
goods or services to others in Agriculture Industry, were selected from the data set. To
measure the influence of cognitive and social capital factors on early stage entrepreneurial
activity logistic regression was employed. The findings show that those who see
entrepreneurial opportunities, are confident in their own skills and ability, having
personal relationship or social networks with existing entrepreneurs, and have invested
in others business as business angels are more likely to become an entrepreneur.
Additionally, fear of failure or risk perception does not prevent people to become
entrepreneur. Policy implications have been discussed. This is one the first study of its
kind and contributes to the existing literature by explaining agricultural entrepreneurship
through an integrated approach of entrepreneurial cognition and social networking.
