Perceived Survival Risk, Motivation for New Enterprises, and Entrepreneurship Knowledge: A Case from Small Agricultural Entrepreneurs in Tennessee

Aditya Khanal, Michael Crawford, Sujan Ghimire, Fisseha Tegegne — Fri, 23 Aug 2024 00:00:00 +0000

Entrepreneurship can create significant positive changes for economic development in rural areas. Specific to small farmers, who find it difficult to directly compete with large operations through conventional production in local and global marketplaces, the development of new feasible enterprises could be an important sustainable strategy. To understand the motivations of farm businesses, perceived survival risks, and entrepreneurship knowledge, we conducted a primary survey among small agricultural entrepreneurs (SAEs) in Tennessee. Based on the findings from our sample, SAEs are highly passionate and motivated in farming, the majority have business-related education or background (67% of the sampled SAEs) and consider themselves as self-employed (51% of sampled SAEs). Over half of our sampled SAEs developed 1 to 3 new enterprises in their farm or related businesses in the past 5 years while a few SAEs developed up to six new enterprises. However, we found that SAEs find their operation risky to continue and are challenged mainly by the shortage of skilled and reliable labor, finance and loans, and competitive markets. We also examined SAE’s level of understanding of different aspects of entrepreneurship and discussed the implications of our findings.

Willingness to Pay for Cattle Insurance in Nepal: A Double-Hurdle Model Perspective

Saugat Khanal, Ujjal Tiwari, Sarav Khanal — Fri, 23 Aug 2024 00:00:00 +0000

Since the adoption of the Crop and Livestock Insurance Directives in 2013, the adoption of livestock insurance has gained popularity in Nepal. In the eight years since implementation, adoption rates have remained low, even with 80% government premium subsidies. This study uses a double-hurdle model for quantitative analysis and focuses on the determinants of willingness to pay (WTP) for cattle insurance. The research identifies significant factors influencing insurance adoption decision, including positive impacts from farmer’s age, education, livestock loss history, awareness of insurance, dairy farm income, number of cattle, and loan access. However, male gender, extensive cattle rearing experience, and larger households negatively affect willingness to insure. A number of factors affect premium determination, including age, size of household, livestock loss, off-farm income, number of cattle, and loan accessibility; on the other hand, factors that have a negative impact on premium levels include breed type, marital status, and revenue from dairy farms. According to the findings, the annual WTP for cattle insurance among dairy farmers varies from $48 to $71 (NRs. 6315-9341), with an average of $58 (NRs. 7631). Interestingly, the majority of farmers demonstrate their commitment to risk management by accepting premiums equal to 5% of the value of the cattle. The research contributes to understanding livestock insurance premiums in developing countries, specifically in Nepal, and suggests a scope for extending insurance programs, while also noting a gap in awareness among dairy farmers regarding government subsidy programs.

Global Journal of Agricultural and Allied Sciences

Perceived Survival Risk, Motivation for New Enterprises, and Entrepreneurship Knowledge: A Case from Small Agricultural Entrepreneurs in Tennessee

Willingness to Pay for Cattle Insurance in Nepal: A Double-Hurdle Model Perspective