HOW PROLONGED DROUGHTS AND FARM SUBSIDIES INFLUENCE ENTREPRENEURIAL VENTURES BY FARMERS

Ram Ranjan

Journal of Developmental Entrepreneurship (JDE), 2015, vol. 20, issue 04, 1-21

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.

Keywords: Farm subsidies; risk of business failure; water-scarce agriculture; human capital; social capital; social networking; entrepreneurial activity; non-farm enterprise (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S1084946715500259
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:jdexxx:v:20:y:2015:i:04:n:s1084946715500259

Ordering information: This journal article can be ordered from

DOI: 10.1142/S1084946715500259

Access Statistics for this article

Journal of Developmental Entrepreneurship (JDE) is currently edited by Peter Koveos

More articles in Journal of Developmental Entrepreneurship (JDE) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().