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

Author

Listed:
  • 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.

Suggested Citation

  • 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
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    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. Alexander Chepurenko, 2015. "Entrepreneurship Theory: New Challenges and Future Prospects," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 9(2), pages 44-57.

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