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Determinants of Rural Industrial Entrepreneurship of Farmers in West Bengal: A Structural Equations Approach

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  • Henk Folmer

    (Department of Spatial Sciences, University of Groningen, Netherlands, College of Economics and Management, Northwest A & F University, Yangling, China)

  • Subrata Dutta

    (Sardar Patel Institute of Economic and Social Research, Ahmedabad, India, subratacalcutta@hotmail.com)

  • Han Oud

    (Behavioural Science Institute, Radboud University Nijmegen, Netherlands)

Abstract

This article presents a structural equations model of rural industrial entrepreneurship (RIE) among farmers in the Bardhaman district, West Bengal, India. It identifies the determinants of RIE but also analyzes impacts of RIE on its endogenous determinants. Age, education, marital status, number of children, number of crops, financial family support, innovativeness, wealth, and occupational status are identified as the main determinants of RIE. On the basis of these findings, promotion, education, and training programs are suggested as important policy handles to encourage and support farmers to start a rural industrial enterprise. Moreover, the development of properly functioning capital markets in rural areas is recommended. This policy instrument may not only stimulate rural industrialization but may also be instrumental in controlling the development of inefficient rural industrial activities.

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  • Henk Folmer & Subrata Dutta & Han Oud, 2010. "Determinants of Rural Industrial Entrepreneurship of Farmers in West Bengal: A Structural Equations Approach," International Regional Science Review, , vol. 33(4), pages 367-396, October.
    • Handle: RePEc:sae:inrsre:v:33:y:2010:i:4:p:367-396
    DOI: 10.1177/0160017610384400
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      • Alexander Chepurenko, 2015. "Entrepreneurship Theory: New Challenges and Future Prospects," Foresight-Russia Форсайт, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 9(2 (eng)), pages 44-57.
    2. Siddhivinayak Hirve & Johan Oud & Somnath Sambhudas & Sanjay Juvekar & Yulia Blomstedt & Stephen Tollman & Stig Wall & Nawi Ng, 2014. "Unpacking Self-Rated Health and Quality of Life in Older Adults and Elderly in India: A Structural Equation Modelling Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 117(1), pages 105-119, May.
    3. Amitrajeet A. Batabyal & Peter Nijkamp, 2012. "A Schumpeterian Model of Entrepreneurship, Innovation, and Regional Economic Growth," International Regional Science Review, , vol. 35(3), pages 339-361, July.
    4. Haoying Li & Jonas Østergaard Nielsen & Rui Chen, 2023. "Rural Entrepreneurship Development in Southwest China: A Spatiotemporal Analysis," Land, MDPI, vol. 12(4), pages 1-22, March.
    5. Dongni Meng & Yingying Shang & Xiaoxu Zhang & Ying Li, 2023. "Does Entrepreneurship Policy Encourage College Graduates’ Entrepreneurship Behavior: The Intermediary Role Based on Entrepreneurship Willingness," Sustainability, MDPI, vol. 15(12), pages 1-19, June.
    6. Rupak Goswami & Soumitra Chatterjee & Binoy Prasad, 2014. "Farm types and their economic characterization in complex agro-ecosystems for informed extension intervention: study from coastal West Bengal, India," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 2(1), pages 1-24, December.
    7. Bogdan-Constantin Ibanescu & Alexandra Gheorghiu & Mioara Cristea & Gabriela Carmen Pascariu, 2023. "The Evolution of Job Insecurity in Spatial Contexts in Europe During COVID-19 Pandemic," International Regional Science Review, , vol. 46(5-6), pages 552-576, September.
    8. Adedeji, Abdulkabir Niran & Sidique, Shaufique Fahmi & Rahman, Azmawani Abd & Law, Siong Hook, 2016. "The role of local content policy in local value creation in Nigeria's oil industry: A structural equation modeling (SEM) approach," Resources Policy, Elsevier, vol. 49(C), pages 61-73.
    9. Chan Yang & Xiaogang He & Xiaoyan Wang & Jinjun Nie, 2022. "The Influence of Family Social Status on Farmer Entrepreneurship: Empirical Analysis Based on Thousand Villages Survey in China," Sustainability, MDPI, vol. 14(14), pages 1-27, July.
    10. Bannor, Richard Kwasi & Ros-Tonen, Mirjam A.F. & Mensah, Princess Ophelia & Derkyi, Mercy & Nassah, Valerie Fumey, 2021. "Entrepreneurial behaviour among non-timber forest product-growing farmers in Ghana: An analysis in support of a reforestation policy," Forest Policy and Economics, Elsevier, vol. 122(C).
    11. Giuseppe Arbia, 2011. "A Lustrum of SEA: Recent Research Trends Following the Creation of the Spatial Econometrics Association (2007--2011)," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(4), pages 377-395, July.
    12. Subrat Sarangi & R. K. Renin Singh & Brajaballav Kar, 2022. "A comparative assessment of migrant and indigenous entrepreneurs on regional development: A case of Odisha, India," Growth and Change, Wiley Blackwell, vol. 53(1), pages 170-199, March.
    13. Jiafeng Gu, 2024. "Family social capital and entrepreneurship in rural China: potential mediating mechanisms," Economic Change and Restructuring, Springer, vol. 57(4), pages 1-30, August.
    14. Dhruv Pande & Munmun Jha, 2016. "Collective and Organic Farming in Tamil Nadu: Women’s Participation, Empowerment and Food Sovereignty," Asian Social Science, Canadian Center of Science and Education, vol. 12(8), pages 184-184, August.
    15. Małgorzata Wosiek & Adam Czudec, 2019. "The Relationship between the Entrepreneurship and the Local Environment: Evidence from Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 262-289.
    16. Peng, Y. & Turvey, C. & Kong, R., 2018. "An Analysis of China s Reforms on Mortgaging and Transacting Rural Land Use Rights and Entrepreneurial Activity," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277308, International Association of Agricultural Economists.

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