Entrepreneurship the mediating role of finance and entrepreneurial education for small farmers in developing countries: Evidence from India

Purpose: This paper investigates the mediating role of access to finance and entrepreneurial education for Small and Marginal Farmers (SMFs) in the Indian northern state of Punjab. Furthermore, it examines the inter-mediatory role of entrepreneurs and the access to finance in the promotion of innovation, development and consequently poverty alleviation. Design / methodology / approach: To gain a deeper insight, we used a purposive sampling technique, involving in-depth, face-to-face interviews based on a semi-structured questionnaire amongst 185 farmers from the state of the Punjab in India. The combination of open ended and dichotomous questions amenable to the Likert scale, captured responses and the transcribed questionnaires were thematically analysed. Findings: Using the analysis of the quantitative and qualitative responses, we explain the cause and consequences of the finance gap and the impact of poverty on household income and the debt levels of SMFs. The findings suggest the expanding pool of SMFs is due to land ownership fragmentation that disenfranchises SMFs from accessing adequate finance thus limiting their ability to adapt to technological innovations, and therefore limiting their productivity and growth. This essentially limits their ability to transform their economic and social wellbeing. The findings from the data analysis suggest a lack of access to finance negatively impacts on SMFs’ ability to use innovative practices, technologies and productivity. This adversely affects income level, access to education and social goods to propel them out of poverty. The findings advocate that government policy should focus on land reforms, which provide adequate access to finance to enable the adaption of technology and an access to markets to empower marginal farmers. Research implications / limitations: Land fragmentation resulting with population growth in emerging economies continuously expands SMFs. To improve efficiency, productivity and entrepreneurial traits amongst SMFs, it is a pre-requisite to have an agile economy. However, in emerging economies such as India, the responses of 185 farmers suggest, a bespoke policy to promote the interest of SMFs through enabling them access to finance, technologies, training and education, continues to prove elusive. This novel empirical research provides evidence that demands that policy makers, commercial institutions and donors need to respond to the needs of SMFs to ensure food security and an optimal utilization of farmland. The limitation of this research is that the sample is from one country, which limits its generalization. The findings of this study could be enhanced by conducting comparative studies in other regions or economies. Originality / value: This empirical study examined the barriers to enterprise for SMFs in the Indian Punjab; it examined the causes and consequences and the implications for food security for India. The findings of this study highlight the importance of developing the entrepreneurial capabilities of SMFs through effective education, training and above all through an adequate access to finance to enable them to adapt their technology. Furthermore, the findings make a case as to why SMFs are an integral part of the food chain and why it is necessary to enhance their efficiency, productivity and their access to finance

The impact of entrepreneurship education on succession in ethnic minority family firms

Purpose – The purpose of this paper is to explore the impact that entrepreneurship education can have on succession in ethnic minority family firms that operate in the highly competitive UK economy. Design/methodology/approach – The paper employs a complex conceptual model of ethnic minority graduates' economic activities and outlines the possible influence that entrepreneurship education can have on succession in their family firms. An illustrative case study is presented of an ethnic minority graduate who returned to work in the family firm. Findings – It emerges that entrepreneurship education provision in UK HEIs is insufficiently customised to, and focused on, the specific entrepreneurial needs of graduates. Educators should take into account the complex socio‐economic and cultural differences between native and ethnic minority learning environments. Effective entrepreneurship education emerges as crucial to the survival and growth of ethnic minority family businesses in the UK and could contribute positively to ownership transfer in this type of firm. Research limitations/implications – The proposed theoretical model has not been empirically tested and it is only indicative of the impact that entrepreneurship education could have on succession in small ethnic minority family businesses in the UK. Originality/value – Although prior research has explored various aspects of ownership succession, this article focuses specifically on the impact that entrepreneurship education can have on succession in small ethnic minority family firms

The role of guanxi networks in the performance of women-led firms in China

This exploratory paper examines how knowledge acquired via guanxi (networks and connections) have enabled women-led firms in China to overcome a number of significant barriers and challenges in order to start and grow a successful business. We draw upon two case studies, in order to illustrate how they have utilized guanxi as a means of overcoming these barriers. We investigate the way in which guanxi facilitates the business owner in engaging in a process of entrepreneurial learning (Harrison and Leitch 2005; Politis, 2008) – and making connections and contacts – by which she is able to improve the firm’s performance. Further research is necessary to build upon a small number of studies that have already cleared the ground in terms of guanxi. More reliable and country-wide, but disaggregated, statistics on small businesses would be a welcome start, including information on their owner-manager’s or owner-managers’ gender

"Enter the dragoness": Firm growth, finance, guanxi, and gender in China

Purpose: The purpose of this exploratory paper is to theorise and examine gender differences in the impact of financial capital on Chinese firms' growth, and investigate the role of guanxi (connections and networks) in the process of obtaining finance. Design/methodology/approach: A structured questionnaire is used to collect comprehensive financial data from 18 women to 69 men, which is analysed empirically. Findings: Women appear to be no more disadvantaged from obtaining finance than men in China and in some respects appear to be in a better position. Both women- and men-led firms are significantly stronger in relation to having access to enough finance to grow than at the start-up phase. A majority of participants in this study used guanxi to access finance. Furthermore, the paper finds that guanxi is used equally by men and women, and that guanxi-sourced finance comprised a significant proportion of the overall capital obtained. Research limitations/implications: One major limitation of the study is that, of the 87 questionnaires returned, 21 per cent are women and 79 per cent are men and, although the findings are not representative or generalisable, the results do suggest a number of possible avenues for future research. Originality/value: The paper has illuminated the under-explored area of the financing of growth in women-led firms in China. This research agenda is particularly important because small- and medium-sized enterprise finance in China is a key need-to-know area, there is a paucity of specific research on financing women entrepreneurs in China and of the phenomenal rise of women's entrepreneurship in China. © Emerald Group Publishing Limited

Mediating agricultural entrepreneurship through embracing innovative technology: a tale from small rural enterprises in an emerging economy

Purpose The study evaluates small marginal farmers’ (SMFs) potential behavior, attitude and trust in the adoption of innovative emerging technologies. Design/methodology/approach The study employed an agile multi-factor approach to conceptualize a digital marketplace to connect a supply chain ecosystem for stakeholders. Findings The empirical findings suggest that most SMFs are willing to embrace innovative technologies. Nonetheless, they lack the necessary technological oriented education, training and funds to innovate. However, their reluctance to adapt changes is attributable to their fear of losing past customs and practices; they were threatened by the reaction of intermediaries (arthyias) to the adoption of technologies, which could result in them suffering huge losses. Originality/value This innovative disintermediation business model has a significant potential to reduce information asymmetry, cost and hoarding – and can thus increase the SMFs’ profit margins. Agricultural technological innovations have a profound potential to impact their supply chain logistics positively by reducing the wastage of perishable food and thus enhancing the consumer experience

Environmental Tax, SME Financing Constraint and Innovation. Evidence from OECD Countries

This paper examines the impact of environmental tax on SME innovation and how SME financing constraint moderates this relationship. Given the paucity of research on the implications of financing constraints on SMEs’ green innovative activities, the study adopts cross-country panel data to investigate the impact of environmental tax on SME’s innovative activities across 24 OECD countries for the period 2000-2019. Results from our study indicate that an increase in environmental tax leads to a decrease in SME innovation. Further, we also find that financing constraint positively moderates the relationship between environmental tax and SME innovation. Our findings shed new light on the theoretical and practical implications of financing constraints on SMEs’ green innovative activities

A Cognisance of Green Bond Features Preferential to Renewable Energy Project Financing in Ghana

Issuance of green bonds (GBs) is valuable for developing countries because it provides a market deepening mechanism, which enables greater liquidity for investments in Renewable Energy (RE) sector. This paper is premised on the outlook for the first GB in Ghana. The study investigates the features of GBs, which investors prioritise as preferential for RE financing (REF). Employing the literature, twelve beneficial features of GBs were identified and formed the based for a questionnaire, which was handed to experts in financial institutions to complete. Data were analysed and ranked with the relative importance index and other statistical tests. The findings illustrated that low-interest rates, similar payback period, economic convenience and transparency issuance are among the top preferential features for feasible green bond rollouts in Ghana. Findings implied that akin to other worldwide cases for renewable energy financing, GBs represent a degree of flexibility, which stems from the homogeneity in their respective features. The study illustrates the specific priorities, which must be considered by potential investors. Resultantly, enabling GBs issuers to develop GB packages that suit the needs of the investment community and ultimately contribute to RE targets' achievement