Effects of entrepreneurial behaviour on market outlets choice: Evidence from rice producers in Ashanti Region, Ghana

Abstract

Smallholder rice producers have limited demand for their locally produced rice due to the complex market outlets choice decisions challenges they become confronted with as well as their limited knowledge of appropriate entrepreneurial traits required for successful rice production and marketing. This study assessed the entrepreneurial behaviours of smallholder rice producers in Ashanti region of Ghana. Using multi-stage sampling technique, the study used primary data collected from 200 rice producers in the Ashanti Region of Ghana. Entrepreneurial behavior index (EBI) and the multivariate probit model were the methods of analysis. The results showed that most rice producers have medium level of risk-taking ability, innovativeness behaviour, proactiveness behaviour, self-confidence, and decision-making ability. Also, majority of the producers consider retailers as the most appropriate market outlet among the diverse market outlet alternatives in the region. In addition, innovative behaviour, self-confidence, and decision-making ability influenced the choice of market outlet by the rice producers. The study recommends that smallholder rice producers should enhance their entrepreneurial competencies through enrollment and participation in social groups and farmer-based workshops to equip them with networking and social skills. Also, programs designed to improve the entrepreneurial skills of smallholder rice farmers should adopt a tailored approach by taking into account the fact that different farmers have different levels of entrepreneurial skills.