The entrepreneurial farmer

Abstract

This study investigates the activities of a selected group of entrepreneurial farmers in an attempt to understand why they have pursued off-farm product related activities. The aim of the study is to examine the personal characteristics of these farmers so an understanding may be gained of how this influences their farm business management and how it distinguishes them from other conventional farmers. The study also looks into the problems and benefits that arose during the establishment and management of entrepreneurial farm businesses.

A qualitative method of data sampling involving a series of 15 in-depth interviews with farmers was used. To effectively distinguish the characteristics of entrepreneurial farmers from their conventional counterparts, a smaller group of successful conventional farmers were also interviewed to test whether particular characteristics are unique to entrepreneurial farmers. The case studies were used to examine a number of factors, including the respondents' approach to information gathering and implementing change in the farm businesses. Risk was also examined in terms of farmers' attitude and management of key sources of risk. Personal characteristics of entrepreneurial farmers were also studied and comparisons made with conventional farmers.

The results of this study have led to the development of a model of emerging entrepreneurship among New Zealand farmers. The model describes a pattern of change occurring within the entrepreneurial group of farmers. These farmers had reached the point of achieving most farm-based goals and had decided to pursue new challenges and goals for their farm business. This change involved off-farm activities such as marketing, processing or innovation in production. The farmers were often motivated by frustration with existing selling structures, and had the confidence to pursue their own vision of creating a new business and ultimately improving their farm returns.

There were fewer differences between the management style of the entrepreneurs and the conventional farmers than was expected. What did distinguish the entrepreneurial farmer from the conventional farmer was a higher level of confidence, a preparedness to accept higher levels of risk, and the extensive use of information from different sources that they then used in different ways.

The model of emerging entrepreneurship suggests that farm level entrepreneurship may be an option for farmers to improve their on-farm returns, as the transition is likely to be less problematic than in other industries. However, there is likely to be a relationship between confidence and level of resources for the continued emergence of entrepreneurship on New Zealand farms.