Factors Affecting Success of Entrepreneurship in Agribusinesses: Evidence from the City of Mashhad, Iran

Sayed Saghaian, Hosein Mohammadi and Morteza Mohammadi
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Sayed Saghaian: Department of Agricultural Economic, College of Agriculture, Food and Environment, University of Kentucky, Lexington, KY 40536, USA
Hosein Mohammadi: Department of Agricultural Economics, College of Agriculture, Ferdowsi University of Mashhad, Mashhad 9177948978, Iran
Morteza Mohammadi: Department of Economics, Faculty of Literature and Humanities, Hakim Sabzevari University, Sabzevar 9617976487, Iran

Sustainability, 2022, vol. 14, issue 13, 1-12

Abstract: Entrepreneurship and innovation are the fuel of economic growth. Understanding the motivational factors that lead to the success of entrepreneurs in agribusiness can be useful in affecting the degree of successful investment that accelerates development and economic growth in the agriculture sector. In this study, we investigated the factors affecting the success of entrepreneurs in the agribusiness sector in Mashhad, Iran, using a two-stage Heckman approach. Factors affecting the success or failure of agribusiness entrepreneurship have received less attention in the literature. In this study, the aim was to determine the factors affecting agricultural entrepreneurship success and entrepreneurs’ profits. We generated the data for this study by designing a questionnaire and conducting a survey of active entrepreneurs in Mashhad in 2020. The results showed that entrepreneurship experience, risk-taking behavior, interest rates, and initial capital have a significant impact on the probability of entrepreneurship success and entrepreneur’s profits. Policies that could improve the skills of entrepreneurs, provision of initial capital requirements, and financial market efficiency had an effective role in increasing entrepreneurship and innovation in the agribusiness sector. Entrepreneurs in the field of agriculture could consider these factors to have better choices while entering or continuing with their agribusinesses. Our recommendation to policymakers and agribusiness leaders is to establish a friendlier and more stable environment for entrepreneurship and employ policies that help reduce the risk of entrepreneurs’ initial investment returns.

Keywords: sustainable entrepreneurship; innovation; business strategy; agribusinesses; economic development; environmental concerns; profits; food security (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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