Determinants of entrepreneurial opportunity recognition by agricultural entrepreneurs

Abstract

Agriculture sector has more uncertainties than non-agriculture sector. On the other hand, due to diversity in products and services, this sector offers many entrepreneurial opportunities. The purpose of the current study was to investigate determinants of entrepreneurial opportunity recognition by agricultural entrepreneurs. This study was conducted using survey method, and the sample was made up of 140 Iranian agricultural entrepreneurs. The participants were assigned with proportionate stratified random sampling. Data was gathered using a questionnaire, and was analysed using SPSS22 and AMOS22. Path analysis results showed that 'social networks' was the most important determinant of entrepreneurial opportunity recognition with the highest direct effect (0.41). Other factors influencing opportunity recognition included creativity, self-efficacy, prior knowledge and regulatory institution. Education influenced opportunity recognition indirectly through creativity, prior knowledge and social networks, and work experience influenced opportunity recognition indirectly through self-efficacy and social networks. Relevant theoretical and practical implications and contributions are discussed.