Analysis of Individual Capacity Building of Entrepreneurial Knowledge among Farmer Micro Entrepreneurs and Underlying Factors Affecting It (Case Study: Mashhad County)

Document Type : Original article

Authors

Department of Geography, Faculty of Letters and Humanities, Ferdowsi University of Mashhad Mashhad, Iran.

Abstract

Background and Purpose: Experiences of the past few decades show that the development of agricultural entrepreneurship is not achieved solely by injecting capital and technology; much more important factors, including knowledge capacity building, play a significant role in this field. Knowledge capacity building, encompassing the ability to create and acquire knowledge, networking, and business management, enables individuals to identify opportunities and take innovative actions. In the present study, individual capacity building of entrepreneurial knowledge among agricultural microentrepreneurs is of interest. Microentrepreneurs are those employed in very small businesses that typically have fewer than five employees. Considering the role of humans as a factor in the mobility of other resources in entrepreneurship, the issue of individual knowledge capacity building of agricultural microentrepreneurs requires special attention.
Methodology: The research method is descriptive-analytic. In this study, 55 villages with agricultural microentrepreneurs were identified in Mashhad city, and all 90 microentrepreneurs in these villages were examined. In this study, the capacity building of individual entrepreneurial knowledge in agricultural micro-businesses was quantified across three dimensions: networking (with 5 indicators), knowledge building (with 8 indicators), and business management (with 5 indicators), all measured on a Likert scale. Cronbach's alpha of 0.83 indicates the desired reliability of the research tool. The background factors affecting the capacity building of individual entrepreneurial knowledge in the field of agriculture were identified using the following variables: age, gender, marital status, place of birth, level of education, field of study, and agricultural activity history, which were measured on nominal, ordinal, and relative scales.
Findings and Discussion: Among micro-entrepreneurs, the average ratings for networking, knowledge building, and management and leadership were 2.91, 2.96, and 3.03, respectively, on a Likert scale. Overall, the capacity building of individual entrepreneurial knowledge among agricultural micro-entrepreneurs is not at a desirable level, with an average of 2.97. According to the correlation test, as the components of capacity building for entrepreneurial knowledge increase, we observe a significant rise in income and increased satisfaction with entrepreneurial activity. Additionally, with increasing experience in agricultural activities, the capacity for entrepreneurial knowledge building also increases. In fact, business satisfaction has the highest correlation with the components of individual capacity building and networking. Additionally, the income of small-scale agricultural entrepreneurs is influenced by management and knowledge development. Additionally, age and years of education, in most cases, have a weak or insignificant relationship with the orientation of entrepreneurial knowledge building and its components.
Conclusion: Considering the direct effect of individual knowledge capacity building on increasing income and business satisfaction, it is suggested that educational and empowerment programs for small-scale agricultural entrepreneurs be designed and implemented with a focus on developing networking, knowledge building, and business management skills in order to provide the basis for improving economic performance and sustainability of entrepreneurial activities in the agricultural sector. It is essential that policymakers and institutions responsible for rural and agricultural development design and implement targeted educational programs and empowering interventions with a focus on improving networking, knowledge building, and business management skills. This measure can pave the way for improved economic performance, sustainability of entrepreneurial activities, and more effective utilization of human capacities in the agricultural sector.

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