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

Sayed Saghaian, Hosein Mohammadi, Morteza Mohammadi

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

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.

Original languageEnglish
Article number7700
JournalSustainability (Switzerland)
Volume14
Issue number13
DOIs
StatePublished - Jul 1 2022

Bibliographical note

Publisher Copyright:
© 2022 by the authors. Licensee MDPI, Basel, Switzerland.

Keywords

  • agribusinesses
  • business strategy
  • economic development
  • environmental concerns
  • food security
  • innovation
  • profits
  • sustainable entrepreneurship

ASJC Scopus subject areas

  • Computer Science (miscellaneous)
  • Geography, Planning and Development
  • Renewable Energy, Sustainability and the Environment
  • Building and Construction
  • Environmental Science (miscellaneous)
  • Energy Engineering and Power Technology
  • Hardware and Architecture
  • Computer Networks and Communications
  • Management, Monitoring, Policy and Law

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