1- Yasouj Universit
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Extended Abstract
Introduction and Objective: The agricultural sector is a cornerstone of food security and a primary engine of economic development in many countries, including Iran. In Iran, this sector serves as the main source of raw materials for processing industries and non-oil exports, playing a vital role in the national economy. Despite its crucial importance, Iranian agriculture faces serious challenges, such as population growth, limited water and soil resources, climate change, environmental pollution, and intense competition in global markets. Agricultural entrepreneurship represents a key strategy to address these challenges. By creating new jobs and providing services to other farmers—such as specialized consulting, mechanization services, and suitable equipment—it promotes production diversification, increases incomes, improves the quality of rural life, empowers youth, and helps reduce migration and poverty, thereby contributing to sustainable development. However, most agricultural entrepreneurs in Iran operate on a small scale, which limits their access to markets, technology, capital, and support networks. These constraints result in weak competitiveness, economic instability, and dependence on government subsidies. In contrast, large-scale entrepreneurs, with their autonomous decision-making power, adoption of modern technologies, access to broader markets, and professional management, are more successful in navigating the challenges of the agricultural sector.
Therefore, scaling up the businesses of agricultural entrepreneurs can be considered a key strategy for rural economic and social development. Given the lack of sufficient studies on the factors influencing the scale of these enterprises—especially in underdeveloped regions such as Kohgiluyeh and Boyer-Ahmad Province, which, despite its human resource potential, natural assets, and rich cultural heritage, suffers from high unemployment—this study seeks to identify the factors affecting the upscaling of entrepreneurial farmers' businesses (both small- and large-scale) and propose solutions for improving their situation in this province.
Material and Methods: This research employed a survey methodology. The statistical population included 90 entrepreneurial beneficiaries, from which a sample of 73 individuals (comprising 61 large-scale and 12 small-scale entrepreneurs) was selected using stratified random sampling with proportional allocation. A researcher-designed questionnaire served as the data collection instrument, with its validity confirmed by experts in the field. The reliability of the questionnaire was established through a pilot test and the calculation of Cronbach's alpha coefficient. To confirm the factor structure of the variables related to the supportive context and to appropriately categorize the items into their underlying components, exploratory factor analysis was employed. Data analysis was conducted using discriminant analysis and path analysis to investigate the factors influencing the business scale of entrepreneurs.
Results: Discriminant analysis identified the key factors distinguishing small-scale from large-scale entrepreneurial farmers. The variables with the most substantial positive effects on scaling operations were product value (standardized coefficient: 0.68), knowledge (0.66), and access to technology (0.50). These were followed by motivation (0.37) and skill (0.15). Conversely, several factors demonstrated a negative relationship with business scale: supportive context (-0.49), market orientation (-0.24), interactive customer relationships (-0.19), creativity (-0.11), and social pressure (-0.06). These results indicate that large-scale farmers typically produce higher-value goods and possess superior knowledge, skills, motivation, and technological access. In contrast, small-scale farmers appear more susceptible to social pressures, maintain weaker customer relationships, face challenges in market orientation, and have constrained access to broader markets. They also tend to operate in less supportive environments and exhibit lower levels of creativity. The structural matrix further confirmed that product value and access to technology are among the most critical differentiating factors.
Conclusion: The analysis of the results indicates that product value, knowledge, and access to technology are the primary factors distinguishing small-scale from large-scale entrepreneurial farmers. Enhancing agricultural product value is therefore essential for business growth. To achieve this, farmers should focus on elevating quality by adopting modern techniques such as precision irrigation, integrated pest and disease management, and standardized fertilizer use, all of which can boost market demand. Strengthening marketing skills and implementing effective branding through professional packaging, targeted advertising, and improved sales techniques are also crucial. Further strategies to increase value include product diversification, the innovation of new crop varieties, the processing of agricultural products, and supply chain optimization. Following product value, knowledge is a significant determinant of business scale for farmer entrepreneurs. To address this, we recommend organizing specialized training courses in entrepreneurship and agriculture, establishing support networks, and fostering collaboration between government agencies, universities, and research centers to facilitate the exchange of knowledge, experience, and new technologies. Providing practical workshops and internships on advanced farms, coupled with hands-on experience using relevant equipment, would be highly beneficial. Moreover, developing online platforms, mobile applications, and educational software would ensure easier access to up-to-date information, significantly enhancing business performance. Finally, access to and the utilization of technology profoundly impact the scale of agricultural enterprises. Therefore, increasing this access—through support for agricultural technology startups, fostering innovation, and establishing technological infrastructure (such as mobile systems, e-commerce, and communication platforms)—can connect farmers to markets and information, thereby driving business growth. Consequently, governments, relevant organizations, and technology producers should focus on creating access networks, providing financial and technical support, and improving technology availability for entrepreneurial farmers. Organizing training courses tailored to local needs and based on these new technologies will further empower farmers to utilize them effectively.
Introduction and Objective: The agricultural sector is a cornerstone of food security and a primary engine of economic development in many countries, including Iran. In Iran, this sector serves as the main source of raw materials for processing industries and non-oil exports, playing a vital role in the national economy. Despite its crucial importance, Iranian agriculture faces serious challenges, such as population growth, limited water and soil resources, climate change, environmental pollution, and intense competition in global markets. Agricultural entrepreneurship represents a key strategy to address these challenges. By creating new jobs and providing services to other farmers—such as specialized consulting, mechanization services, and suitable equipment—it promotes production diversification, increases incomes, improves the quality of rural life, empowers youth, and helps reduce migration and poverty, thereby contributing to sustainable development. However, most agricultural entrepreneurs in Iran operate on a small scale, which limits their access to markets, technology, capital, and support networks. These constraints result in weak competitiveness, economic instability, and dependence on government subsidies. In contrast, large-scale entrepreneurs, with their autonomous decision-making power, adoption of modern technologies, access to broader markets, and professional management, are more successful in navigating the challenges of the agricultural sector.
Therefore, scaling up the businesses of agricultural entrepreneurs can be considered a key strategy for rural economic and social development. Given the lack of sufficient studies on the factors influencing the scale of these enterprises—especially in underdeveloped regions such as Kohgiluyeh and Boyer-Ahmad Province, which, despite its human resource potential, natural assets, and rich cultural heritage, suffers from high unemployment—this study seeks to identify the factors affecting the upscaling of entrepreneurial farmers' businesses (both small- and large-scale) and propose solutions for improving their situation in this province.
Material and Methods: This research employed a survey methodology. The statistical population included 90 entrepreneurial beneficiaries, from which a sample of 73 individuals (comprising 61 large-scale and 12 small-scale entrepreneurs) was selected using stratified random sampling with proportional allocation. A researcher-designed questionnaire served as the data collection instrument, with its validity confirmed by experts in the field. The reliability of the questionnaire was established through a pilot test and the calculation of Cronbach's alpha coefficient. To confirm the factor structure of the variables related to the supportive context and to appropriately categorize the items into their underlying components, exploratory factor analysis was employed. Data analysis was conducted using discriminant analysis and path analysis to investigate the factors influencing the business scale of entrepreneurs.
Results: Discriminant analysis identified the key factors distinguishing small-scale from large-scale entrepreneurial farmers. The variables with the most substantial positive effects on scaling operations were product value (standardized coefficient: 0.68), knowledge (0.66), and access to technology (0.50). These were followed by motivation (0.37) and skill (0.15). Conversely, several factors demonstrated a negative relationship with business scale: supportive context (-0.49), market orientation (-0.24), interactive customer relationships (-0.19), creativity (-0.11), and social pressure (-0.06). These results indicate that large-scale farmers typically produce higher-value goods and possess superior knowledge, skills, motivation, and technological access. In contrast, small-scale farmers appear more susceptible to social pressures, maintain weaker customer relationships, face challenges in market orientation, and have constrained access to broader markets. They also tend to operate in less supportive environments and exhibit lower levels of creativity. The structural matrix further confirmed that product value and access to technology are among the most critical differentiating factors.
Conclusion: The analysis of the results indicates that product value, knowledge, and access to technology are the primary factors distinguishing small-scale from large-scale entrepreneurial farmers. Enhancing agricultural product value is therefore essential for business growth. To achieve this, farmers should focus on elevating quality by adopting modern techniques such as precision irrigation, integrated pest and disease management, and standardized fertilizer use, all of which can boost market demand. Strengthening marketing skills and implementing effective branding through professional packaging, targeted advertising, and improved sales techniques are also crucial. Further strategies to increase value include product diversification, the innovation of new crop varieties, the processing of agricultural products, and supply chain optimization. Following product value, knowledge is a significant determinant of business scale for farmer entrepreneurs. To address this, we recommend organizing specialized training courses in entrepreneurship and agriculture, establishing support networks, and fostering collaboration between government agencies, universities, and research centers to facilitate the exchange of knowledge, experience, and new technologies. Providing practical workshops and internships on advanced farms, coupled with hands-on experience using relevant equipment, would be highly beneficial. Moreover, developing online platforms, mobile applications, and educational software would ensure easier access to up-to-date information, significantly enhancing business performance. Finally, access to and the utilization of technology profoundly impact the scale of agricultural enterprises. Therefore, increasing this access—through support for agricultural technology startups, fostering innovation, and establishing technological infrastructure (such as mobile systems, e-commerce, and communication platforms)—can connect farmers to markets and information, thereby driving business growth. Consequently, governments, relevant organizations, and technology producers should focus on creating access networks, providing financial and technical support, and improving technology availability for entrepreneurial farmers. Organizing training courses tailored to local needs and based on these new technologies will further empower farmers to utilize them effectively.
Keywords: Agricultural entrepreneurship, Business scale, Small-scale enterprise, Large-scale entrepreneur, Discriminant analysis, Path analysis
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