Evaluating Inspiring Factors and Obstacles in the Start-Up of Owned Agri-Preneurial Businesses: Underlying Evidence from South Africa
Abstract
:1. Introduction
Theoretical Framework
2. Literature Review
Failure of Agri-Preneurship Businesses
3. Materials and Methods
3.1. Sample and Sampling Procedure
3.2. Multinominal Logistics Regression Model
3.3. Data Analysis
4. Results and Discussion
4.1. Descriptive Statistics
4.2. Sources of Agri-Preneurial Business Ideas
4.3. Inspiration for Starting an Agri-Preneurial Business
4.4. Obstacles Hampering the Start-Up of One’s Own Agri-Preneurial Business
4.5. Relationship between Demographic Characteristics and Inspirational Factors
4.6. Relationship between Independent Variables and Inspirational Factors
5. Conclusions
6. Limitations and Future Research
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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1 | Economic theory deals with motivation as the primary driver of entrepreneurial initiatives |
2 | The resource-based theory focuses on heterogeneousness because of variations in natural endowment influencing entrepreneurial intention. |
3 | The opportunity-based theory resonates as a recognition of opportunities and resources that are either neglected or under-exploited within the business environment. |
4 | The subsistence theory articulates the instinct and drive for the survivalist enterprise in the informal economy. |
5 | The psychological theory expresses the behavioral theory of the firm, which postulates that behavior is learned through interaction with the environment. |
6 | The social theory considers a set of shared values that permits individuals to function together as a group with mutual trust to achieve a common goal. |
Gender | Age | Level of Formal Education | Marital Status | Farm Size | Source of Income | Farm Experience | Household Size | |
---|---|---|---|---|---|---|---|---|
Valid | 458 | 458 | 458 | 458 | 458 | 458 | 458 | 458 |
Mean | 1.6725 | 4.2271 | 1.924 | 1.5328 | 1.5153 | 2.4367 | 2.7096 | 1.9803 |
Gender | ||||||||
Frequency | Percent | Valid Percent | Cumulative Percent | |||||
Valid | Male | 150 | 31.1 | 32.8 | 32.8 | |||
Female | 308 | 63.9 | 67.2 | 100.0 | ||||
Total | 458 | 95.0 | 100.0 | |||||
Missing | System | 24 | 5.0 | |||||
Total | 482 | 100 | ||||||
Age | ||||||||
Frequency | Percent | Valid Percent | Cumulative Percent | |||||
Valid | <20 years | 21 | 4.4 | 4.6 | 4.6 | |||
20–30 years | 36 | 7.5 | 7.9 | 12.4 | ||||
31–40 years | 58 | 12.0 | 12.7 | 25.1 | ||||
41–50 years | 149 | 30.9 | 32.5 | 57.6 | ||||
51–60 years | 91 | 18.9 | 19.9 | 77.5 | ||||
>61 years | 103 | 21.4 | 22.5 | 100.0 | ||||
Total | 458 | 95.0 | 100.0 | |||||
Missing | System | 24 | 5.0 | |||||
Total | 482 | 100.0 | ||||||
Level of Formal Education | ||||||||
Frequency | Percent | Valid Percent | Cumulative Percent | |||||
Valid | No school | 210 | 43.6 | 45.9 | 45.9 | |||
Primary | 94 | 19.5 | 20.5 | 66.4 | ||||
Secondary | 133 | 27.6 | 29.0 | 95.4 | ||||
Tertiary | 21 | 4.4 | 4.6 | 100.0 | ||||
Total | 458 | 95.0 | 100.0 | |||||
Missing | System | 24 | 5.0 | |||||
Total | 482 | 100.0 | ||||||
Marital Status | ||||||||
Frequency | Percent | Valid Percent | Cumulative Percent | |||||
Valid | Single | 256 | 53.1 | 55.9 | 55.9 | |||
Married | 177 | 36.7 | 38.6 | 94.5 | ||||
Divorced | 8 | 1.7 | 1.7 | 96.3 | ||||
Windowed | 17 | 3.5 | 3.7 | 100.0 | ||||
Total | 458 | 95.0 | 100.0 | |||||
Missing | System | 24 | 5.0 | |||||
Total | 482 | 100.0 | ||||||
Farm Size | ||||||||
Frequency | Percent | Valid Percent | Cumulative Percent | |||||
Valid | <1 acre | 234 | 48.5 | 51.1 | 51.1 | |||
1–5 acres | 212 | 44.0 | 46.3 | 97.4 | ||||
6–10 acres | 12 | 2.5 | 2.6 | 100.0 | ||||
Total | 458 | 95.0 | 100.0 | |||||
Missing | System | 24 | 5.0 | |||||
Total | 482 | 100.0 | ||||||
Source of Income | ||||||||
Frequency | Percent | Valid Percent | Cumulative Percent | |||||
Valid | Salary | 82 | 17.0 | 17.9 | 17.9 | |||
Grant | 169 | 35.1 | 36.9 | 54.8 | ||||
Pension | 132 | 27.4 | 28.8 | 83.6 | ||||
Other | 75 | 15.6 | 16.4 | 100.0 | ||||
Total | 458 | 95.0 | 100.0 | |||||
Missing | System | 24 | 5.0 | |||||
Total | 482 | 100.0 | ||||||
Farm Experience | ||||||||
Frequency | Percent | Valid Percent | Cumulative Percent | |||||
Valid | <5 years | 122 | 25.3 | 26.6 | 26.6 | |||
6–10 years | 69 | 14.3 | 15.1 | 41.7 | ||||
11–15 years | 87 | 18.0 | 19.0 | 60.7 | ||||
>16 years | 180 | 37.3 | 39.3 | 100.0 | ||||
Total | 458 | 95.0 | 100.0 | |||||
Missing | System | 24 | 5.0 | |||||
Total | 482 | 100.0 |
Frequency | Percent | Valid Percent | Cumulative Percent | ||
---|---|---|---|---|---|
Valid | Hobby | 101 | 21.0 | 22.1 | 22.1 |
Professional activities | 41 | 8.5 | 9.0 | 31.0 | |
Personal dream | 24 | 5.0 | 5.2 | 36.2 | |
Knowledge through research | 68 | 14.1 | 14.8 | 51.1 | |
Media | 39 | 8.1 | 8.5 | 59.6 | |
Friends and relatives | 58 | 12.0 | 12.7 | 72.3 | |
Peers’ impression | 38 | 7.9 | 8.3 | 80.6 | |
Inheritance | 58 | 12.0 | 12.7 | 93.2 | |
Government programs | 13 | 2.7 | 2.8 | 96.1 | |
Market survey | 18 | 3.7 | 3.9 | 100.0 | |
Total | 458 | 95.0 | 100.0 | ||
Missing | System | 24 | 5.0 | ||
Total | 482 | 100.0 |
Inspiration | Frequency | Percent | Valid Percent | Cumulative Percent | |
---|---|---|---|---|---|
Valid | Self-satisfaction | 98 | 20.3 | 21.4 | 42.4 |
Self-realization | 96 | 19.9 | 21.0 | 21.0 | |
Social status | 79 | 16.4 | 17.2 | 87.6 | |
Possibility of higher returns | 56 | 11.6 | 12.2 | 54.6 | |
Pride of ownership of business | 49 | 10.2 | 10.7 | 65.3 | |
Affirmation of value | 30 | 6.2 | 6.6 | 94.1 | |
Pursuit of self-trial | 27 | 5.6 | 5.9 | 100.0 | |
Independence in decision making | 23 | 4.8 | 5.0 | 70.3 | |
Total | 458 | 95.0 | 100.0 |
Obstacles | Frequency | % |
---|---|---|
Inadequate capital for start-up | 61 | 13.3 |
Inadequate experience | 56 | 12.2 |
Taxation and licensing | 51 | 11.1 |
Fear of failure | 31 | 6.8 |
Incessant changes to investment legislation | 27 | 5.9 |
Unstable government and governance | 26 | 5.7 |
Fear of competition | 25 | 5.5 |
Inadequate assistance and advice concerning businesses | 24 | 5.2 |
Unhealthy business environment and infrastructure | 23 | 5.0 |
Exorbitant labor cost | 21 | 4.6 |
Regulations concerning business registration | 20 | 4.4 |
Psychological effects of being referred to as a farmer (a job for the dirty and poor) | 19 | 4.1 |
Other | 18 | 3.9 |
Inadequate business ideas | 15 | 3.3 |
Inadequate market and access | 14 | 3.1 |
IT knowledge and skills | 14 | 3.1 |
Stereotype in farming (a job for a particular group or race) | 11 | 2.4 |
Total | 458 | 100.0 |
Case Processing Summary | ||||
---|---|---|---|---|
Inspiration for Starting Up an Agri-Preneurial Business | N (482) | Marginal Percentage | ||
Self-satisfaction | 98 | 21.4% | ||
Self-realization | 96 | 21.0% | ||
Social status | 79 | 17.2% | ||
Possibility of higher returns | 56 | 12.2% | ||
Pride of ownership of business | 49 | 10.7% | ||
Affirmation of value | 30 | 6.6% | ||
Pursuit of self-trial | 27 | 5.9% | ||
Independence in decision making | 23 | 5.0% | ||
Valid | 458 | 100.0% | ||
Missing | 24 | |||
Total | 482 | |||
Sub-population | 88 a | |||
a. * The dependent variable has only one value observed in 5 (5.7%) sub-populations. | ||||
Model Fitting Information | ||||
Model | Model Fitting Criteria | Likelihood Ratio Tests | ||
−2 Log Likelihood | Chi-Square | df | Sig. | |
Intercept Only | 1209.946 | |||
Final | 1096.902 | 113.044 | 56 | <0.001 |
Goodness-of-Fit | ||||
Chi-Square | df | Sig. | ||
Pearson | 919.622 | 553 | 0.001 | |
Deviance | 803.114 | 553 | 0.001 | |
Pseudo R-Square | ||||
Cox and Snell | 0.219 | |||
Nagelkerke | 0.223 | |||
McFadden | 0.063 | |||
Likelihood Ratio Tests | ||||
Effect | Model Fitting Criteria | Likelihood Ratio Tests | ||
−2 Log Likelihood of Reduced Model | Chi-Square | df | Sig. | |
Intercept | 1108.169 | 11.267 | 7 | 0.127 |
Gender | 1104.081 | 7.179 | 7 | 0.410 |
Age | 1128.716 | 31.813 | 7 | 0.001 |
Level of formal education | 1109.808 | 12.906 | 7 | 0.074 |
Marital status | 1128.366 | 31.464 | 7 | 0.001 |
Farm size | 1101.388 | 4.486 | 7 | 0.722 |
Source of income | 1098.993 | 2.091 | 7 | 0.955 |
Farm experience | 1116.778 | 19.876 | 7 | 0.006 |
Parameter Estimates | |||||||||
---|---|---|---|---|---|---|---|---|---|
Inspiration for Starting Up an Agri-Preneurial Business a | B | Std. Error | Wald | df | Sig. | Exp.B. | 95% Confidence Interval for Exp(B) | ||
Lower Bound | Upper Bound | ||||||||
Self-realization | Intercept | −0.210 | 1.837 | 0.013 | 1 | 0.909 | |||
Gender | −0.066 | 0.530 | 0.016 | 1 | 0.900 | 0.936 | 0.331 | 2.644 | |
Age | 0.573 | 0.271 | 4.466 | 1 | 0.035 * | 1.774 | 1.042 | 3.020 | |
Level of formal education | 0.442 | 0.312 | 2.007 | 1 | 0.157 | 1.556 | 0.844 | 2.868 | |
Marital status | 0.740 | 0.346 | 4.563 | 1 | 0.033 * | 0.477 | 0.242 | 0.941 | |
Farm size | −0.040 | 0.457 | 0.008 | 1 | 0.930 | 0.961 | 0.392 | 2.353 | |
Household size | −0.118 | 0.356 | 0.109 | 1 | 0.741 | 0.889 | 0.442 | 1.787 | |
Source of income | 0.028 | 0.262 | 0.011 | 1 | 0.916 | 1.028 | 0.615 | 1.719 | |
Farm experience | −0.091 | 0.258 | 0.123 | 1 | 0.726 | 0.913 | 0.551 | 1.514 |
Parameter Estimates | |||||||||
---|---|---|---|---|---|---|---|---|---|
Inspiration for Starting Up an Agri-Preneurial Business a | B | Std. Error | Wald | df | Sig. | Exp.B. | 95% Confidence Interval for Exp(B) | ||
Lower Bound | Upper Bound | ||||||||
Self-satisfaction | Intercept | 0.294 | 1.852 | 0.025 | 1 | 0.874 | |||
Gender | 0.371 | 0.536 | 0.479 | 1 | 0.489 | 1.449 | 0.507 | 4.139 | |
Age | 0.146 | 0.259 | 0.318 | 1 | 0.573 | 1.158 | 0.696 | 1.925 | |
Level of formal education | 0.511 | 0.309 | 2.747 | 1 | 0.097 | 1.668 | 0.911 | 3.053 | |
Marital status | −1.564 | 0.409 | 14.610 | 1 | 0.001 * | 0.209 | 0.094 | 0.467 | |
Farm size | 0.236 | 0.464 | 0.259 | 1 | 0.611 | 1.266 | 0.510 | 3.142 | |
Household size | −0.096 | 0.361 | 0.071 | 1 | 0.790 | 0.908 | 0.448 | 1.843 | |
Source of income | 0.126 | 0.259 | 0.238 | 1 | 0.626 | 1.135 | 0.683 | 1.886 | |
Farm experience | 0.275 | 0.257 | 1.145 | 1 | 0.285 | 1.316 | 0.796 | 2.178 |
Parameter Estimates | |||||||||
---|---|---|---|---|---|---|---|---|---|
Inspiration for Starting Up an Agri-Preneurial Business a | B | Std. Error | Wald | df | Sig. | Exp.B. | 95% Confidence Interval for Exp(B) | ||
Lower Bound | Upper Bound | ||||||||
Possibility of higher returns | Intercept | −0.399 | 2.001 | 0.040 | 1 | 0.842 | |||
Gender | −0.134 | 0.566 | 0.056 | 1 | 0.813 | 0.875 | 0.289 | 2.652 | |
Age | 0.172 | 0.282 | 0.372 | 1 | 0.542 | 1.188 | 0 | 2.064 | |
Level of formal education | 0.772 | 0.329 | 5.487 | 1 | 0.019 * | 2.164 | 1.134 | 4.127 | |
Marital status | −0.539 | 0.378 | 2.036 | 1 | 0.154 | 0.583 | 0.278 | 1.223 | |
Farm size | 0.214 | 0.490 | 0.190 | 1 | 0.663 | 1.238 | 0.474 | 3.235 | |
Household size | −0.274 | 0.383 | 0.513 | 1 | 0.474 | 0.760 | 0.359 | 1.611 | |
Source of income | −0.084 | 0.274 | 0.094 | 1 | 0.759 | 0.919 | 0.537 | 1.574 | |
Farm experience | 0.203 | 0.277 | 0.535 | 1 | 0.465 | 1.225 | 0.712 | 2.107 |
Parameter Estimates | |||||||||
---|---|---|---|---|---|---|---|---|---|
Inspiration for Starting Up an Agri-Preneurial Business a | B | Std. Error | Wald | df | Sig. | Exp.B. | 95% Confidence Interval for Exp(B) | ||
Lower Bound | Upper Bound | ||||||||
Pride of ownership of business | Intercept | −2.398 | 2.104 | 1.299 | 1 | 0.254 | |||
Gender | −0.001 | 0.582 | 0.000 | 1 | 0.998 | 0.999 | 0.319 | 3.125 | |
Age | 0.554 | 0.304 | 3.323 | 1 | 0.068 | 1.740 | 0.959 | 3.158 | |
Level of formal education | 0.777 | 0.343 | 5.127 | 1 | 0.024 * | 2.176 | 1.110 | 4.264 | |
Marital status | −0.549 | 0.368 | 2.227 | 1 | 0.136 | 0.577 | 0.281 | 1.188 | |
Farm size | 0.130 | 0.496 | 0.069 | 1 | 0.793 | 1.139 | 0.431 | 3.013 | |
Household size | −0.171 | 0.388 | 0.195 | 1 | 0.659 | 0.843 | 0.394 | 1.802 | |
Source of income | −0.017 | 0.288 | 0.004 | 1 | 0.952 | 0.983 | 0.558 | 1.730 | |
Farm experience | 0.113 | 0.286 | 0.156 | 1 | 0.692 | 1.120 | 0.639 | 1.962 |
Parameter Estimates | |||||||||
---|---|---|---|---|---|---|---|---|---|
Inspiration for Starting Up an Agri-Preneurial Business a | B | Std. Error | Wald | df | Sig. | Exp.B. | 95% Confidence Interval for Exp(B) | ||
Lower Bound | Upper Bound | ||||||||
Pride of ownership of business | Intercept | −2.398 | 2.104 | 1.299 | 1 | 0.254 | |||
Gender | −0.001 | 0.582 | 0.000 | 1 | 0.998 | 0.999 | 0.319 | 3.125 | |
Age | 0.554 | 0.304 | 3.323 | 1 | 0.068 | 1.740 | 0.959 | 3.158 | |
Level of formal education | 0.777 | 0.343 | 5.127 | 1 | 0.024 * | 2.176 | 1.110 | 4.264 | |
Marital status | −0.549 | 0.368 | 2.227 | 1 | 0.136 | 0.577 | 0.281 | 1.188 | |
Farm size | 0.130 | 0.496 | 0.069 | 1 | 0.793 | 1.139 | 0.431 | 3.013 | |
Household size | −0.171 | 0.388 | 0.195 | 1 | 0.659 | 0.843 | 0.394 | 1.802 | |
Source of income | −0.017 | 0.288 | 0.004 | 1 | 0.952 | 0.983 | 0.558 | 1.730 | |
Farm experience | 0.113 | 0.286 | 0.156 | 1 | 0.692 | 1.120 | 0.639 | 1.962 |
Parameter Estimates | |||||||||
---|---|---|---|---|---|---|---|---|---|
Inspiration for Starting Up an Agri-Preneurial Business a | B | Std. Error | Wald | df | Sig. | Exp.B. | 95% Confidence Interval for Exp(B) | ||
Lower Bound | Upper Bound | ||||||||
Social status | Intercept | 0.877 | 1.880 | 0.217 | 1 | 0.641 | |||
Gender | −0.117 | 0.545 | 0.046 | 1 | 0.829 | 0.889 | 0.306 | 2.588 | |
Age | −0.316 | 0.264 | 1.435 | 1 | 0.231 | 0.729 | 0.435 | 1.223 | |
Level of formal education | 0.422 | 0.313 | 1.819 | 1 | 0.177 | 1.525 | 0.826 | 2.816 | |
Marital status | −0.092 | 0.340 | 0.073 | 1 | 0.787 | 0.912 | 0.469 | 1.774 | |
Farm size | 0.430 | 0.459 | 0.877 | 1 | 0.349 | 1.537 | 0.625 | 3.780 | |
Household size | −0.433 | 0.361 | 1.438 | 1 | 0.231 | 0.648 | 0.319 | 1.316 | |
Source of income | −0.031 | 0.262 | 0.014 | 1 | 0.906 | 0.969 | 0.580 | 1.621 | |
Farm experience | 0.521 | 0.267 | 3.798 | 1 | 0.051 * | 1.684 | 0.997 | 2.843 |
Parameter Estimates | |||||||||
---|---|---|---|---|---|---|---|---|---|
Inspiration for Starting Up an Agri-Preneurial Business a | B | Std. Error | Wald | df | Sig. | Exp.B. | 95% Confidence Interval for Exp(B) | ||
Lower Bound | Upper Bound | ||||||||
Affirmation of value | Intercept | −2.602 | 2.399 | 1.177 | 1 | 0.278 | |||
Gender | 0.831 | 0.684 | 1.478 | 1 | 0.224 | 2.296 | 0.601 | 8.765 | |
Age | 0.185 | 0.324 | 0.326 | 1 | 0.568 | 1.203 | 0.637 | 2.272 | |
Level of formal education | 0.653 | 0.372 | 3.085 | 1 | 0.079 | 1.922 | 0.927 | 3.983 | |
Marital status | −0.646 | 0.434 | 2.214 | 1 | 0.137 | 0.524 | 0.224 | 1.227 | |
Farm size | 0.367 | 0.553 | 0.442 | 1 | 0.506 | 1.444 | 0.489 | 4.267 | |
Household size | −0.247 | 0.427 | 0.334 | 1 | 0.563 | 0.781 | 0.338 | 1.805 | |
Source of income | −0.141 | 0.323 | 0.190 | 1 | 0.663 | 0.869 | 0.461 | 1.636 | |
0.250 | 0.313 | 0.634 | 1 | 0.426 | 1.284 | 0.694 | 2.373 | ||
Farm experience | 0.250 | 0.313 | 0.634 | 1 | 0.426 | 1.284 | 0.694 | 2.373 |
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Agholor, I.A.; Chowdhury, A.; Olamide, E. Evaluating Inspiring Factors and Obstacles in the Start-Up of Owned Agri-Preneurial Businesses: Underlying Evidence from South Africa. Adm. Sci. 2024, 14, 47. https://doi.org/10.3390/admsci14030047
Agholor IA, Chowdhury A, Olamide E. Evaluating Inspiring Factors and Obstacles in the Start-Up of Owned Agri-Preneurial Businesses: Underlying Evidence from South Africa. Administrative Sciences. 2024; 14(3):47. https://doi.org/10.3390/admsci14030047
Chicago/Turabian StyleAgholor, Isaac Azikiwe, Ataharul Chowdhury, and Ebenezer Olamide. 2024. "Evaluating Inspiring Factors and Obstacles in the Start-Up of Owned Agri-Preneurial Businesses: Underlying Evidence from South Africa" Administrative Sciences 14, no. 3: 47. https://doi.org/10.3390/admsci14030047
APA StyleAgholor, I. A., Chowdhury, A., & Olamide, E. (2024). Evaluating Inspiring Factors and Obstacles in the Start-Up of Owned Agri-Preneurial Businesses: Underlying Evidence from South Africa. Administrative Sciences, 14(3), 47. https://doi.org/10.3390/admsci14030047