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Researching the entrepreneurial behaviour of new and existing ventures in European agriculture

Emilio Pindado () and Mercedes Sánchez ()
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Emilio Pindado: Universidad Pública de Navarra
Mercedes Sánchez: Universidad Pública de Navarra

Small Business Economics, 2017, vol. 49, issue 2, 421-444

Abstract: Abstract This study analyzes differences existing between new and established agri-entrepreneurs as well as differences in relation to their counterparts in non-agricultural ventures. This study uses the resource-based view and institutional economics as conceptual frameworks and focuses on the analysis of the resources and capabilities; entrepreneurial orientation (risk-taking, proactiveness and innovativeness); and legitimation affecting the entrepreneurial process. The literature points out that the specific characteristics of the sector (strong family links and institutional support) can condition the entrepreneurship process. Thus, hypotheses are developed to test these relationships. We use random effects models to test our hypotheses with the Global Entrepreneurship Monitor (GEM) for 20 European countries. Results show that agri-entrepreneurs have weaker entrepreneurial capabilities than other sectors. However, new entrants into the agricultural sector are not less entrepreneurial in relation to other sectors. On the other hand, established agri-entrepreneurs are less proactive than other sectors. Results suggest that new entrants into agriculture are more entrepreneurially oriented than established ones. Our study contributes to the entrepreneurship literature by contextualizing the entrepreneurship process and providing valuable insights for policy-makers to enhance farmers’ entrepreneurial skills and entrepreneurial orientation.

Keywords: Agricultural entrepreneurship; Family business; Entrepreneurial orientation; Resource-based view; GEM; Legitimation (search for similar items in EconPapers)
Date: 2017
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