Drivers of Agricultural Entrepreneurship in Factor Driven Economies: A Study Based on GEM Data

Abstract

The purpose of this research work is to explain the drivers of early stage entrepreneurship in factor driven economies and how are these affected by several cognitive and social capital factors. This study covers literature on several driving factors of entrepreneurial activity, trying to formulate a framework of determinants of early stage agricultural entrepreneurial activity. For this purpose, the adult population survey (APS), 2013 data of factor driven economies published by GEM (Global Entrepreneurship Monitor) has been used. The selected respondents (848) include those individuals who, alone or with other individuals, presently involved in venture creation, including any self-employment or selling any goods or services to others in agricultural sector. The impact of cognitive and social capital factors on early stage entrepreneurial activity is measured using logistic regression. The findings suggest that its opportunity perception and selfefficacy who are the major motivators of early stage entrepreneurship in developing nations. Also, there is gender biasness and ageing negativity with respect to new agri-business creation in developing countries. The policymakers are advised to promote motivational talks by successful entrepreneurs, motivating the budding entrepreneurs and making others understand the positives of new venture creation. This study is one of its kind conducted on agricultural entrepreneurship contributing the existing literature by explaining the impact of cognitive and social capital factors on early stage agri-preneurship in factor driven economies.