INDEXING ENTREPRENEURIAL SUCCESS OF FLORICULTURAL SMALL ENTERPRISES: EVIDENCE FROM SRI LANKA

Kalani Asmitha Kiriveldeniya; P Sivashankar; M S Elapata; R P Mahaliyanaarachchi; M Esham

doi:10.21776/ub.agrise.2020.020.3.1

INDEXING ENTREPRENEURIAL SUCCESS OF FLORICULTURAL SMALL ENTERPRISES: EVIDENCE FROM SRI LANKA

Kalani Asmitha Kiriveldeniya, P Sivashankar, M S Elapata, R P Mahaliyanaarachchi, M Esham

AGRISE,Vol 20, No 3 (2020), 179-190

Viewed : 76 times

Abstract

Commercialized agriculture shows better avenues in diversifying the rural livelihoods. Floriculture industry is an avenue to initiate successful small scale enterprises in a conductive environment. This paper explores the aspects in small scale floriculture industry to adapt strategies in rural development through indexing the success of floriculture small enterprises under eight dimensions. Both interviewer administrated questionnaire and in-depth interviews with key respondents were adapted in data collection. Findings indicate that average entrepreneurial success index of the sample is 0.57, meaning average success level and 38% were very successful. Diversification (0.78), profitability (0.68), social recognition (0.61) are the dimensions that have highest mean values and quality of supply or service (0.56), customer satisfaction (0.45) and employee satisfaction (0.27) had lower mean values. Middle age (34%) and women (64%) entrepreneurs’ engagement in the industry was high. Time spent on the enterprise and labour usage depends on whether the business is their primary or secondary income activity. Floriculture small scale enterprises have been identified as a good income avenue for middle aged women in rural areas. However, rural development strategies need to address the requirement of how to develop the management skills of rural entrepreneurs as well for the sustainability of their enterprises.

Keywords

Agripreneurs; diversification; entrepreneurial success index; floriculture; rural development; small businesses

Full Text:

PDF

References

Abimbola, T. (2001). Branding as a competitive strategy for demand management in SMEs. Journal of research in marketing and entrepreneurship, 3(2), 97-106.

Alabi, D. L., Akintola, O. M., & Famakinwa, M. (2018). Perception of Maize Processors Towards Utilization of Maize Value Addition Techniques: Implications for Rural Entrepreneurship Development–A Study in Nigeria. Journal of Agricultural Sciences – Sri Lanka, 13(2), pp.141–152.

Alvord, S. H., Brown, L. D., & Letts, C. W. (2004). Social entrepreneurship and societal transformation: An exploratory study. The journal of applied behavioral science, 40(3), 260-282.

Baron, R. A. (2000). Psychological perspectives on entrepreneurship: Cognitive and social factors in entrepreneurs' success. Current directions in psychological science, 9(1), 15-18.

Carney, D. (1998). Sustainable livelihoods. Sustainable Livelihoods: What contribution can we make.

Carter, N. M., Gartner, W. B., Shaver, K. G., & Gatewood, E. J. (2003). The career reasons of nascent entrepreneurs. Journal of Business Venturing, 18(1), 13-39.

Central Bank of Sri Lanka, (2017). National Output, Expenditure and Income. Retrieved from https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/publications/annual_report/2017/en/6_Chapter_02.pdf.

Chu, H. M., Benzing, C., & McGee, C. (2007). Ghanaian and Kenyan entrepreneurs: A comparative analysis of their motivations, success characteristics and problems. Journal of developmental entrepreneurship, 12(03), 295-322.

Clark, J. (2009). Entrepreneurship and diversification on English farms: Identifying business enterprise characteristics and change processes. Entrepreneurship and Regional Development, 21(2), 213-236.

Covin, J. G., Green, K. M., & Slevin, D. P. (2006). Strategic process effects on the entrepreneurial orientation–sales growth rate relationship. Entrepreneurship theory and practice, 30(1), 57-81.

Dalenius, T., & Hodges Jr, J. L. (1959). Minimum variance stratification. Journal of the American Statistical Association, 54(285), 88-101.

Davis, J. R. (2003). The rural-non-farm economy, livelihoods and their diversification: Issues and options. Livelihoods and their Diversification: Issues and Options (July 2003).

De Chiara, A., & Minguzzi, A. (2002). Success factors in SMEs' internationalization processes: An Italian investigation. Journal of small business management, 40(2), 144-153.

Díez-Martín, F., Blanco-González, A., & Prado-Román, C. (2016). Explaining nation-wide differences in entrepreneurial activity: A legitimacy perspective. International Entrepreneurship and Management Journal, 12(4), 1079-1102.

Drucker, P.F. (1995). The theory of business, Harvard Business Review, 75(5), 95-104.

Ebiringa, O. T. (2011). Entrepreneurship venturing and Nigeria’s economic development: The manufacturing sector in focus. International. Journal of Business Management & Economic Research, 2(6), 376-381.

Florin, J., Lubatkin, M., & Schulze, W. (2003). A social capital model of high-growth ventures. Academy of Management Journal, 46(3), 374-384.

Fried, H. O., & Tauer, L. W. (2009). Understanding the entrepreneur: An index of entrepreneurial success.

Fried, H.O. and Tauer, L.W. (2015). An entrepreneur performance index. Journal of Productivity Analysis, 44(1), 69-77.

Gray, C. (2002). Entrepreneurship, resistance to change and growth in small firms. Journal of Small Business and Enterprise Development.

Okpara, J. O., Halkias, D., Nwajiuba, C., Harkiolakis, N., & Caracatsanis, S. M. (2011). Challenges facing women entrepreneurs in Nigeria. Management Research Review.

Harada, N. (2003). Who succeeds as an entrepreneur? An analysis of the post-entry performance of new firms in Japan. Japan and the world economy, 15(2), 211-222.

Hlongwane, J. J., Ledwaba, L. J., & Belete, A. (2014). Analyzing the factors affecting the market participation of maize farmers: A case study of small-scale farmers in greater Giyani Local Municipality of the Mopani District, Limpopo Province. African journal of agricultural research, 9(10), 895-899.

Hughes, K. D. (2003). Pushed or pulled? Women's entry into self‐employment and small business ownership. Gender, Work & Organization, 10(4), 433-454.

International Centre for Research on Women, (2009). Innovation for Women’s Empowerment and Gender Equality, Retrieved from http://www. icrw.org.

Jones, E., Roberts, J. A., & Chonko, L. B. (2000). Motivating sales entrepreneurs to change: a conceptual framework of factors leading to successful change management initiatives in sales organizations. Journal of Marketing Theory and Practice, 8(2), 37-49.

Keeble, J. J., Topiol, S., & Berkeley, S. (2003). Using indicators to measure sustainability performance at a corporate and project level. Journal of Business Ethics, 44(2-3), 149-158.

Kodithuwakku, S. S., & Rosa, P. (2002). The entrepreneurial process and economic success in a constrained environment. Journal of Business Venturing, 17(5), 431-465.

Krake, F. B. (2005). Successful brand management in SMEs: a new theory and practical hints. Journal of Product & Brand Management.

Kuratko, D. F., & Audretsch, D. B. (2009). Strategic entrepreneurship: exploring different perspectives of an emerging concept. Entrepreneurship theory and practice, 33(1), 1-17.

Kuratko, D. F., & Hodgetts, R. M. (2004). Entrepreneurship: Theory, Process. Practice, 6.

Le, Q. V., & Raven, P. V. (2015). Woman entrepreneurship in rural Vietnam: Success and motivational factors. The Journal of Developing Areas, 57-76.

Mathenge, M., Place, F., Olwande, J., & Mithoefer, D. (2010). Participation in agricultural markets among the poor and marginalized: analysis of factors influencing participation and impacts on income and poverty in Kenya. Unpublished Study Report Prepared for the FORD Foundation.

Ministry of Agriculture, (2019). Agriculture Sector Modernization Project. Retrieved from http://www.agrimin.gov.lk/web/index.php/project/12-project/841-agriculture-sector-modernization-project

Mishra, A. K., El-Osta, H. S., & Sandretto, C. L. (2004). Factors affecting farm enterprise diversification.

Nagalakshmi, T., & Sudhakar, A. (2013). Agripreneurs: a case study of Dharmapuri farmers. International Journal of Science and Research, 2(8), 208-214.

Narayan, S. S., & Geethakutty, P. S. (2006). Level of entrepreneurial success among women entrepreneurs in agribusiness. Journal of Tropical Agriculture, 41, 41-44.

North, D., & Smallbone, D. (1996). Small business development in remote rural areas: the example of mature manufacturing firms in Northern England. Journal of Rural Studies, 12(2), 151-167.

Padmini, S. M. P. C., & Kodagoda, T. D. (2017). Present status and future scope of floriculture industry in Sri Lanka and its potential in women empowerment. Sri Lanka Journal of Social Sciences, 40(1).

Pyysiäinen, J., Anderson, A., McElwee, G., & Vesala, K. (2006). Developing the entrepreneurial skills of farmers: some myths explored. International Journal of Entrepreneurial Behavior & Research.

Quinn, R. E., & Spreitzer, G. M. (1997). The road to empowerment: Seven questions every leader should consider. Organizational dynamics, 26(2), 37-49.

Reid, N., & Carroll, M. (2005). Using Cluster-based Economic Development to Enhance the Economic Competitiveness of Northwest Ohio's Greenhouse Nursery Industry. In Papers and proceedings of applied geography conferences (Vol. 28, p. 309). [np]; 1998.

Rogoff, E. G., Lee, M. S., & Suh, D. C. (2004). “Who done it?” Attributions by entrepreneurs and experts of the factors that cause and impede small business success. Journal of Small Business Management, 42(4), 364-376.

Rosairo, H. R., & Potts, D. J. (2016). A study on entrepreneurial attitudes of upcountry vegetable farmers in Sri Lanka. Journal of Agribusiness in Developing and Emerging Economies.

Scoones, I. (1998). Sustainable rural livelihoods: a framework for analysis.

Sebora, T. C., Lee, S. M., & Sukasame, N. (2009). Critical success factors for e-commerce entrepreneurship: an empirical study of Thailand. Small Business Economics, 32(3), 303-316.

Sharma, Y. (2013). Women entrepreneur in India. IOSR Journal of Business and Management, 15(3), 9-14.

Simpson, M., Tuck, N., & Bellamy, S. (2004). Small business success factors: the role of education and training. Education+ Training, 46(8/9), 481-491.

Smallbone, D., North, D., & Kalantaridis, C. (1999). Adapting to peripherality: a study of small rural manufacturing firms in northern England. Entrepreneurship & Regional Development, 11(2), 109-127.

Sri Lanka Department of Census and Statistics, (2014). Census of population-2014, Retrieved from http://www.statistics.gov.lk/agriculture/Publications/Ratnapura%20SH2%20Report.pdf

Sri Lanka Department of Census and Statistics, (2016). Poverty Indicators, Household Income and Expenditure Survey – 2016. Retrieved from http://www.statistics.gov.lk/poverty/Poverty%20Indicators_2016.pdf

Sri Lanka Department of Census and Statistics, (2017). Household Income and Expenditure Survey – 2016. Retrieved from: http://www.statistics.gov.lk/HIES/HIES2016/HIES_2016_final_Result.pdf

Ulluwishewa, R. (1991). Modernization versus sustainability: disintegrating village agro-ecocomplexes in the Dry Zone of Sri Lanka. Environmental Conservation, 18(2), 103-109.

Unger, J.M., Rauch, A., Frese, M. and Rosenbusch, N. (2011). Human capital and entrepreneurial success: A meta-analytical review. Journal of business venturing, 26(3), 341-358.

Uzun, V. (2005). Large and small business in Russian agriculture: adaptation to market. Comparative Economic Studies, 47(1), 85-100.

Vik, J., & McElwee, G. (2011). Diversification and the entrepreneurial motivations of farmers in Norway. Journal of small business management, 49(3), 390-410.

Vinayagam, S. (1998) Entrepreneurial behaviour of agri-business operators in Kerala (Doctoral dissertation, Department of Agricultural Extension, College of Horticulture, Vellanikkara).

Walker, E., & Brown, A. (2004). What success factors are important to small business owners? International small business journal, 22(6), 577-594.

Weerahewa, J., Kodithuwakku, S.S. and Udayanganie, D., 2004. Is agricultural diversification available strategy for improving rural well-being in Sri Lanka? Retrieved from: https://www.researchgate.net/profile/Jeevika_Weerahewa/publication/258205483_Agricultural_Diversification_in_Sri_Lanka/links/567bfc6808ae197583839eeb/Agricultural-Diversification-in-Sri-Lanka.pdf on 26th March 2020.

Weerahewa J, Pushpakumara G, Silva P, Daulagala C, Punyawardena R, Premalal S, Miah G, Roy J et al (2012) Are Homegarden Ecosystems Resilient to Climate Change? An Analysis of The Adaptation Strategies of Homegardeners in Sri Lanka. APN Science Bulletin 2:22–27.

Wijayathilake, G., (2017). Industry Capability Report. Retrieved from: http://www.srilankabusiness.com/pdf/industry_capability_reports/floriculture-2017.pdf

DOI: https://doi.org/10.21776/ub.agrise.2020.020.3.1