How prolonged droughts and farm subsidies influence entrepreneurial ventures by farmers

Ram Ranjan*

*Corresponding author for this work

    Research output: Contribution to journalArticle

    Abstract

    A conceptual model of entrepreneurial uptake by water-scarce farmers explores how farmers accumulate social and human capitals while managing multiple risks in current and future livelihood choices. Social networking and human capital accumulation differentially impact on successes in agriculture and entrepreneurial ventures. The risk of farm subsidy removal and the uncertainties associated with finding and succeeding in a suitable enterprise, present the farmer with difficult trade-offs in terms of which type of capital to accumulate. Results suggest that in the presence of multiple risks, farmers may act to increase their investments in human capital even when chances of finding a suitable business opportunity are low; whereas in some cases, they may accumulate higher social capital to enhance their farm subsidy support even under better chances of finding suitable business opportunities. Further, an increase in risk of agricultural unviability, by itself, does not automatically lead to farmers shifting to enterprise.

    Original languageEnglish
    Article number1550025
    Pages (from-to)1550025-1-1550025-21
    Number of pages21
    JournalJournal of Developmental Entrepreneurship
    Volume20
    Issue number4
    DOIs
    Publication statusPublished - 1 Dec 2015

    Keywords

    • Farm subsidies
    • entrepreneurial activity
    • human capital
    • non-farm enterprise
    • risk of business failure
    • social capital
    • social networking
    • water-scarce agriculture

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