SOLVENCY, ENTREPRENEURIAL ACTION AND THE ECONOMIC ENVIRONMENT: LESSONS FROM THE RECENT PAST

H. D. van Schalkwyk and J. A. Groenewald

Agrekon, 1993, vol. 32, issue 4

Abstract: Average solvency in South African agriculture deteriorated considerably between 1976 and 1985, improved somewhat from 1985 to 1988 and thereafter deteriorated once again. Considerable interregional differences exist in relative levels of solvency. Entrepreneurial and managerial influences on this are manifested through financial management involving particularly mechanization, choice of financiers and risk acceptance or avoidance. A cross sectional and discriminant analysis was done to explain solvency differences between regions. Solvency was shown to be a function of land ownership, education, percentage established pastures, enterprise mix, financier, type of management and long term average rainfall. The output/input price ratio, enterprise mix and percentage of debt load financed by co-operatives explained the difference between regions with below and above average solvency ratios.

Keywords: Agricultural and Food Policy; Public Economics (search for similar items in EconPapers)
Date: 1993
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Persistent link: https://EconPapers.repec.org/RePEc:ags:agreko:267695

DOI: 10.22004/ag.econ.267695

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