Entrepreneurial competency in agriculture: is it a panacea for the problem of farmers' welfare?
Journal of Agribusiness in Developing and Emerging Economies
ISSN: 2044-0839
Article publication date: 7 April 2023
Issue publication date: 29 January 2024
Abstract
Purpose
Although the majority of Ethiopians continue the on-farm and off-farm work, the country still struggles to secure food for its citizens and farmer welfare is very low. To increase farmers' welfare, improving farmers' entrepreneurial competency is believed to be the solution. However, entrepreneurial competencies are diversified, and investigating the most important dimensions specific to the agricultural sector is important. As a result, the objective of this research is to look into important entrepreneurial competencies that could help farmers.
Design/methodology/approach
To achieve the objective, survey data, collected from 178 households in North Shoa, Amhara National Regional State, Ethiopia is analyzed through structural equation modeling (SEM).
Findings
The study revealed that of the six entrepreneurs' competencies considered, only two of them (Strategic competency and relationship competency) have a significant association with the welfare of farmers. Moreover, the study revealed that the moderating effect of agricultural extension (taking model and non-model farmers as a group) on the relationship between entrepreneurial competency and farmers' welfare is not significant.
Research limitations/implications
This study focuses only on six entrepreneurial competencies from which two of them are found significant factors in farmers' welfare. Thus, future research could broaden the scope in terms of looking into additional variables.
Originality/value
The study investigated the moderating effect of the farmers' category as a model and non-model on the relationship between entrepreneurial competency and farmers' welfare, which is the first to discuss the moderation effect.
Keywords
Acknowledgements
This study is part of the third round of a regular research initiative co-sponsored by the Swedish International Development Cooperation Agency (SIDA). As a result, the researcher would like to thank the Swedish government for sponsoring this research. Furthermore, it is good to thank the Department of Management, Addis Ababa University for all of the support provided during the study period.
Finally, the researcher would like to express heartfelt appreciation to Dr Dawit Akeberegn from Debre Berhan for supervising the data collection process.
Citation
Abawa, A. (2024), "Entrepreneurial competency in agriculture: is it a panacea for the problem of farmers' welfare?", Journal of Agribusiness in Developing and Emerging Economies, Vol. 14 No. 1, pp. 60-76. https://doi.org/10.1108/JADEE-01-2022-0006
Publisher
:Emerald Publishing Limited
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