Exploring the potential determinants to favour available entrepreneurial strategies among dairy farmers of southern Punjab in Pakistan

Abstract

ABSTRACT Purpose This paper envisages potential determinants to foster available entrepreneurial strategies among dairy farmers in the Southern region of Punjab, Pakistan. Harnessing the potential of the dairy sub-sector for sustainable development is coupled with appropriate entrepreneurial strategies in developed countries. However, the entrepreneurial strategies among dairy farmers in low-income countries such as Pakistan are little researched. Design/Methodology/Approach This paper examines the potential determinants to foster available entrepreneurial strategies among dairy farmers in the Southern region of Punjab, Pakistan. We developed a classification scheme to explore different entrepreneurial strategies (e.g. reduction, continuance, expansion, diversification, and a combined expansion and diversification plan) practised by dairy farmers in the study area. Utilising original farm-level data (n = 273) of dairy farmers, we employed a multinomial logit model (ML). Findings The ML estimates revealed that access to marketing channels, modern techniques, market information, and government support for dairy farmers significantly affect entrepreneurial strategies. Of these variables, access to agricultural extension services and access to alternate marketing channels attract farmers to expand their farming activities. From this perspective, the availability of marketing channels and access to agricultural extension services appears as the most promising policy option. Practical implications Farmers’ entrepreneurial abilities and strategies can be improved by enhancing the marketing structure and ensuring access to contemporary technology, agricultural extension services, and market knowledge. This will create beneficial synergies for the development of the dairy sub-sector and sustainable development in general. Theoretical Implications The study classifies the farmers’ entrepreneurial strategies into reduction, continuation, expansion, diversification, and both expansion and diversification. It explains the determinants of various entrepreneurial strategies fostering farmers’ decision-making and provides contexts resistant to robust entrepreneurial strategies. Originality/Value The result of this study may be of high interest to policymakers, dairy farmers, and other stakeholders within the dairy sector for designing effective entrepreneurial strategies.