Agholo , Isaac Azikiwe; Chowdhu y, A aha ul; Shehu Fola anmi Gbolahan Yusu
A icle
Ag i-p eneu ial esilience and success: The co ela ion
and demog aphic cha ac e is ics o smallholde s in Sou h
A ica
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(2024) : Ag i-p eneu ial esilience and success: The co ela ion and demog aphic cha ac e is ics o
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Ci a ion: Agholo , Isaac Azikiwe,
A aha ul Chowdhu y, and Shehu
Fola anmi Gbolahan Yusu . 2024.
Ag i-P eneu ial Resilience and
Success: The Co ela ion and
Demog aphic Cha ac e is ics o
Smallholde s in Sou h A ica.
Adminis a i e Sciences 14: 256.
h ps://doi.o g/10.3390/
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adminis a i e
sciences
A icle
Ag i-P eneu ial Resilience and Success: The Co ela ion and
Demog aphic Cha ac e is ics o Smallholde s in Sou h A ica
Isaac Azikiwe Agholo 1,* , A aha ul Chowdhu y 2and Shehu Fola anmi Gbolahan Yusu 3
1School o Ag icul u e, Uni e si y o Mpumalanga, Mbombela 1200, Sou h A ica
2School o En i onmen al Design and Ru al De elopmen , Uni e si y o Guelph,
Guelph, ON N1G 2W1, Canada; [email p o ec ed]
3Depa men o Ag icul u e, Uni e si y o Fo Ha e, Alice 5700, Sou h A ica; [email p o ec ed]
*Co espondence: [email p o ec ed]
Abs ac : The incen i es and subsidies needed o s imula e g ow h, esilience, and success in ag i-
p eneu ial businesses will only be ealized h ough nume ous in e en ions as ag i-p eneu ship
con ibu es signi ican ly o sus ainable ag icul u al de elopmen in Sou h A ica. This s udy p o ided
a no el insigh in o ag i-p eneu ial esilience and success and e idenced he hypo hesis ha he e
is no signi ican posi i e co ela ion be ween ag i-p eneu ial esilience, a m success, and selec ed
demog aphic cha ac e is ics o smallholde s. We su eyed a o al o 200 ag i-p eneu s who we e
willing and able o pa icipa e in his s udy. This s udy used a s uc u ed ques ionnai e ha was
di ided in o he ollowing sec ions: (i) demog aphic in o ma ion; (ii) ag i-p eneu ial esilience;
and (iii) ag i-p eneu ial success. Desc ip i e s a is ics and a eg ession analysis we e employed o
a icula e esponses. Fou dis inc models we e employed o asce ain he goodness o i ness and
he hypo hesis, and assess he ela ionship be ween success, esilience, and selec ed demog aphic
cha ac e is ics o ag i-p eneu s. To de e mine esilience, he Conno –Da idson Resilience Scale
(CD-RISC) wi h 10 i ems was used because he CD-RISC jus i ies he bes psychome ic cha ac e is ics
ha po ays he le els o esilience amongs ag i-p eneu s. In measu ing success, he scale i ems
we e g adua ed and anked on a 5-poin scale om 1 o 5. The eliabili y o he scale was also
es ed, and
α
= 0.93 was ob ained. This s udy ob ained a C onbach alpha alue o 0.96, indica ing
op imum eliabili y. Addi ionally, we an a ac o analysis o ce i y he eliabili y o he a iable,
which ga e one ac o om he ou i ems. Signi ican posi i e co ela ions we e ound be ween
gende , age, educa ion, income, household size, di e si ica ion, and ag i-p eneu ial esilience and
success. This s udy concluded ha mos o he selec ed demog aphic cha ac e is ics we e p edic o s
o ag i-p eneu ial esilience and success. Howe e , demog aphic a iables may be in luenced by
nume ous ac o s gi en he he e ogenei y o ag i-p eneu s in he s udy a ea.
Keywo ds: ag i-p eneu ial esilience; success; demog aphic cha ac e is ics; co ela ion; smallholde s;
Sou h A ica
1. In oduc ion
Ag icul u e as a business in Sou h A ica plays a dis inc socio-economic ole as a
p o ide o aw ma e ials, o eign exchange ea nings, and employmen , no ably in u al
a eas. Sou h A ica has mo ed om he p ima y sec o o p oduc ion o an economy ha is
d i en by he e ia y sec o , culmina ing in an o e all es ima e o 69% o he GDP (A ican
Union 2012). Howe e , employmen in he ag icul u al sec o , which accoun s o abou
5.4%, declined om abou 2 million in he yea 2000 o app oxima ely 885,000 in 2017
(STATS 2017;A.I. Agholo e al. 2023). Engaging in nume ous income-gene a ing s a egies
is pa amoun o educing po e y and enhancing he li elihoods o households in Sou h
A ica. This epo indica es ha o e hal o Sou h A ican households a e ca ego ized as
poo , no wi hs anding he gene al dec ease in po e y be ween 2006 and 2011. Howe e ,
Adm. Sci. 2024,14, 256. h ps://doi.o g/10.3390/admsci14100256 h ps://www.mdpi.com/jou nal/admsci
Adm. Sci. 2024,14, 256 2 o 18
he po e y le el inc eased in 2015 wi h a su ge in ood insecu i y amongs households
(Acs e al. 2013). Acco ding o a gene al household su ey in 2018, a me s engaged in
he cul i a ion o g ains we e 50.6% and ui s and ege ables 53.3%, while 48.7% and
36.6% we e in ol ed in li es ock and poul y p oduc ion, espec i ely. Fu he mo e, abou
10% o households in a ming ecei ed ag icul u al- ela ed suppo , including a m c edi s
wi h he highes suppo p o ided o Eas e n Cape (25.1%) and No he n Cape (17.3%).
In addi ion, 1.3% o households had aining by ex ension pe sonnel in li es ock- ela ed
se ices (STATS 2018;Agholo and Kanayo 2021).
Clima e- ela ed e en s mani es ing in p olonged d ough and high empe a u e ouch-
ing almos all pa s o Sou h A ica be ween 2015 and 2017 exace ba ed ad e se e ec s on
he ag icul u al sec o , especially small a m businesses, led o he decla a ion o na ional
s a e o disas e om 13 Ma ch o 13 June 2018 o su moun he c isis espoused by clima e
change. The decla a ion was in ended o mobilize esou ces o build up in e en ion mea-
su es o deal wi h he unin ended consequences o d ough . This phenomenon a ac ed
ZAR six billion alloca ed o he na ional budge o he 2018/2019 inancial yea (Odendaal
2018;I.A. Agholo e al. 2024). Sou h A ican ag icul u e emains dualis ic in p ac ice,
whe e he comme cial ag icul u e exis s wi h subsis ence smallholde a me s who eside
in u al a eas (Tshuma 2015;Agos ini e al. 2020). Apa om d ough challenges, land
e o m was also ini ia ed o help imp o e ag icul u al businesses and u al li elihoods
since he in oduc ion o democ a ic go e nmen in 1994. The p ima y objec i e o land
e o m was o cu ail he injus ices ha emana ed om he successi e ule o apa heid
go e nmen and o assis in educing po e y (P os e man and Hans ad 2003;Als e e 2008).
The es i u ion and edis ibu ion h us o he land e o m policy c ea ed a ca ego y o
land e o m bene icia ies who a emp ed o engage in comme cial ag icul u al ac i i ies in
hei espec i e a eas. Howe e , s a e assis ance in he o m o machine y and implemen s
we e no adequa ely ma ched by land bene icia ies’ abili y and skills in ob aining wo king
capi al o complemen assis ance om go e nmen . Land bene icia ies we e challenged by
enu e es ic ions ha disallow hem om using hei asse (land) as colla e al o loans.
Ne e heless, while land e o m ini ia i es exis ed o almos wo decades o boos u al
access o land, ag icul u al p ac ice emains domina ed by smallholde a me s wi h land
e o m bene icia ies disgus ed by he go e nmen ailu e o ende ull implemen a ion
(Ak am-Lodhi 2008). The c edi challenges o smallholde a me s in Sou h A ica a e
wo sening wi h inadequa e po en ial o ag i-p eneu s o access c edi exace ba ed by
insu icien c edi channels and colla e als in u al a eas (Akgün and Keskin 2014).
Acco ding o S auss (1996), Al Issa (2021), u al bank cus ome s ha e access o sa ing
acili ies o he han c edi access because o he high ansac ion cos usually associa ed wi h
c edi ansmission accoun . The a eas co e ed by ag icul u al inance include inancial se -
ices such as pe sonal sa ings, emi ances and ans e s, insu ance, and loans, po en ially
equi ed o ag icul u al business and a m subsidia y ac i i ies encompassing he pu chase
o a m inpu and supply, p ocessing, ma ke ing, and e ail. These ac i i ies o en ake place
in u al communi ies, while he la ge ag icul u al p ocessing and ma ke ing businesses
occu in u ban and pe i-u ban cen e s (Awo oye and Singh 2017). In con as o mos o
Sub-Saha an A ica, Sou h A ica has a p oduc i e and unc ioning comme cial a ming
sec o wi h an expanded ag icul u al p oduc ion ha includes he cul i a ion o g ains
like maize, mille , so ghum, and ba ley. Addi ionally, oilseeds, ui s, suga cane, ci us,
nume ous ege ables, and wine a e commonly p oduced. The dominan li es ock ac i i ies
include he ea ing o bee and dai y ca le, pigs, goa s, sheep, as well as poul y p oduc s.
On a e age, one i h o he en i e ag icul u al expo alue ob ained in Sub-Saha an A ica
is gene a ed om Sou h A ica (Babu e al. 2014). Go e nmen assis ance and good use
o public unds emain he ounda ion o bo h subsis ence and comme cial ag icul u al
g ow h in A ica. The in es men in u al ag icul u e, complemen ed wi h policies and
ins i u ional amewo ks emains he d i e o enhanced p oduc i i y. Sou h A ican go -
e nmen suppo o u al ag icul u e since independence has been o e whelming and is
in ended o amelio a e po e y. The comp ehensi e ag icul u al suppo p og am (CASP)
Adm. Sci. 2024,14, 256 3 o 18
is one o he p ima y p o isions o add ess he inadequa e access o suppo se ices,
pa icula ly o ag i-p eneu s (Bazan e al. 2020;Phe la 2017).
The p ime mo e s o ag icul u e in Sou h A ica anges om esea ch and c edi s
o imp o ed ins i u ions and capi al o ma ion. The need o he go e nmen ’s inc eased
in es men in ag icul u e is pa amoun and will go a in enhancing ag icul u al g ow h
(Ba e e al. 2001). Acco ding o he Wo ld Bank indica o , Sub-Saha an A ica’s economy
is expec ed o dec ease om 4.1% in 2021 o 3.3% in 2022 because o inc eased isk o deb ,
d ough , and ising in la ion exace ba ed by he Russian–Uk aine wa . This un o una e
end is exposing ood-insecu e egions in Sub-Saha an A ica o ad e se ha dship (Zhang
e al. 2022;Ba on and Pea 2014). Wi h a ailable da a om abou 33 coun ies in Sub-
Saha an A ica, 29 had in la ion o mo e han 5% in July 2022, while 17 coun ies we e in
double digi s wi h highe bo owing cos s. Fo ins ance, o Ghana, amids weakening local
cu ency, he cedi had in la ion hi ing 33.9% in Augus 2022 and had sough help om he
in e na ional mone a y und (IMF) despi e a g ow h o ecas o 3.5% o he same yea . The
Wo ld Bank also dec eased hi he o; he pe cen age o ecas o Nige ia and Sou h A ica
anging om 3.8% and 2.1% o 3.3% and 1.9%, co espondingly. Howe e , he g ow h
posi ion o Angola, which p o i ed om inc eased oil p ices, was ele a ed o 3.1% om 2.9
in Ap il 2022, while I o y Coas was p edic ed o be he as es g owing economy in Wes
A ica, wi h 5.7% in expec ed g ow h o he yea unde e iew (Ba on and Pea 2014).
The inancial cons ain s o ag i-p eneu s we e widely acknowledged in Sou h A ica as an
impedimen o sus ainable ag icul u al g ow h, in a coun y whe e a la ge sha e o he
popula ion depends on ag icul u e. Banks and o he inancial ins i u ions a e eluc an
and unwilling o lead o small ag i-p eneu ial businesses, ci ing high ailu e in epaymen
and inadequa e colla e al as he easons. Besides, access o u al c edi s by small a m
businesses is also limi ed by he high cos o lending and se icing (Binuomo e e al. 2021).
The pe o mance o small a m businesses in Sou h A ica is bleak and emains daun ing
in he ace o es ic ed access o c edi s. The sea ch o s uc u ed c edi managemen
s a egies and an impac on he na ional subsidy in a pe iod o he en ep eneu ial spi i
o small a m business owne s o comme cialize, unde pinned by a su ey app oach, has
been elusi e.
2. Li e a u e Re iew
2.1. The G ow h Pa h o Ag icul u e
A ican go e nmen in es men owa ds ag icul u al de elopmen is expec ed o
inc ease ollowing planned commi men s a all le els. No able commi men s a e add essed
by he comp ehensi e A ica ag icul u e de elopmen p og amme (CAADP) and he Eas
A ican communi y (EAC)—which ocuses on ways o elimina ing non- a i ade ba ie s
(Boyne and Meie 2009). Sub-Saha an A ica is di e se wi h human and na u al esou ces
ha could gene a e inclusi e g ow h and educe po e y in he a ea. Sub-Saha an A ica
(SSA) is he wo ld’s la ges ee ade a ea, c ea ing an en iable de elopmen pa h and
u ilizing he po en ial o i s eno mous esou ces. The a ea is made up o low, lowe -middle,
uppe middle o high-income coun ies wi h 22 coun ies a ec ed by con lic and 13 s a es
cha ac e ized by low popula ion, inadequa e skill, human capi al, and limi ed land a ea
(Binswange -Mkhize 2014). SSA’s economic pe o mance was o ecas o be a 4% in 2021, an
inc ease om a con ac ion in pe o mance o 2% in 2020. Howe e , he an icipa ed g ow h
o 4% in 2021 was up om economic g ow h o 2% in 2020. SSA economies a e expec ed o
g ow a 3.9 pe cen and 4.2 pe cen in 2023 and 2024, co espondingly. This g ow h pa h has
signi ican impac on ag icul u al p oduc i i y since mos SSA coun ies a e dependen on
ag icul u e (Binswange -Mkhize 2009). The e a e g owing symp oms o ecession, which
is al eady pu ing p essu es on mone a y policy adjus men s. Rese e banks a e saddled
wi h ade-o be ween allowing a weak economy ha is associa ed wi h in la iona y
ou look and ba ling in la ion o limi possible ecession. Meanwhile, many coun ies in
he egion a e ei he wallowing in indeb edness wi h liabili ies and deb dis ess, g owing
om 52.6% o 60.5%. To cushion he isk o a con inued inc ease in deb s and sus enance,
Adm. Sci. 2024,14, 256 4 o 18
some pa s o he egion ha e in oduced aus e i y measu es o manage and educe deb
le els. Imp o ing a ming is c ucial in d i ing a g ow h-enhancing change p ocess. Amids
inc eases in ood p ices and supply es ic ions, occasioned by he Russian–Uk aine wa ,
economic policy make s need o ensu e in e na ional ade lows and a oid a i s and
axes inc eases on expo ed and impo ed goods and se ices. In a ious SSA egions,
comme cializa ion and indus ial de elopmen a e sh inking, and a ming is no c ea ing
su icien e u ns o help in accele a ing ag icul u al comme cializa ion (Campanella e al.
2020). Howe e , he peculia i ies o SSA a ming ha indica e special cons ain s in e ms o
good ag icul u al p oduc ion include clima e aga ies, poo soil e ili y and deg ada ion,
dominance o ain- ed ag icul u e, inadequa e i iga ion, inadequa e a m mechaniza ion,
di e si ied a ming sys ems, gende issues and poo ma ke condi ions (Chadha and
Du a 2020). These cons ain s ha e a - eaching implica ions o he comme cializa ion
o smallholde a ming. Ne e heless, ag icul u al comme cializa ion assis s in os e ing
g ow h o he ma ke in he ag icul u al sec o . The es ablishmen o a m in as uc u es
and imp o ed ag icul u al ex ension se ices could in luence decisions o comme cialize
small a m businesses.
S udies (Ogu u and Qaim 2019;U and Pinho 2010), acknowledged he ole o a m
c edi and in as uc u es in encou aging comme cializa ion. P e ious g ow h in he ag i-
cul u al sec o lagged a ound 3%, which is g ossly inadequa e o a sus ained g ow h a e
o he 6% needed o as - ack ag icul u e expansion and a ge o app op ia e comme -
cializa ion, po e y alle ia ion, and ood secu i y (Coope e al. 2013). Howe e , sui able
policy in e en ion and in es men s, including esusci a ion o in as uc u e, echnology,
an imp o ed ma ke , and an inc eased sha e o ou pu will add ess he inadequacies in
SSA’s ag icul u e and induce comme cializa ion as u baniza ion is happening in he egion.
Ins i u ional se ings equi ed o comme cializa ion o SSA’s ag icul u e show ema kable
success, mani es ing in he imp o emen o he p i a e sec o , independen ci il socie ies,
communi ies, and sec o ins i u ions saddled wi h he p o ision o ag icul u al suppo . A
well- o mula ed and ope a ional ins i u ion can deal wi h all he elemen s o u al de elop-
men , om p ima y heal h ca e and social p o ec ion o ag icul u e. In SSA, go e nmen
egula ions ha e also impeded ood c ops comme cializa ion by in e - egional and bo de
es ic ions. Local demand o mos a m p oduce, no ably he main s aples, is inelas ic in
compa ison o p ice and income shi s. The e o e, an inc ease in p oduc ion would educe
domes ic p ices and p o i in he a ming sec o . Ne e heless, ac oss- he-bo de expo s
o c ops in SSA ha a e no in he na ional ood b acke ha e emained inde ini e o e
ime and hus pa ed way o he comme cializa ion o only c ops ha a e ho icul u al.
The egional ma ke equi es ni y and well-designed go e nmen policies o elimina e
non- a i obs acles linked o he ine ec i e managemen o phy osani a y inspec ions,
anspo cons ain s, and cus oms challenges. Howe e , he ecen go e nmen ’s com-
mi men and ini ia i es a egional and na ional scales o in es mo e in ag icul u e is
gaining momen um. These impo an commi men s encompass he comp ehensi e A ican
ag icul u e de elopmen P og amme (CAADP) and he Eas A ican communi y (EAC)—a
egional ma ke encumbe ed wi h, among o he obliga ions, he emo al o non- a i ade
cons ain s (Chisasa and Makina 2012).
2.2. C edi Access and Ru al Finance in Sou h A ica
The majo i y o Sou h A ican ag i-p eneu s and households li e in in o mal se le-
men s whe e po e y is i e. Howe e , he ci cums ances o small a m businesses wi h
espec o c edi suppo se ices is wo sening (Collie and De con 2009). Ag icul u e
emains an impo an sec o o he Sou h A ican economy, p o iding abou 3% o he
GDP, while gene a ing he highes employmen po en ial o he ci izen y. Ne e heless, he
ull p ospec s o op imum p oduc ion ha e no been ealized because o he inadequa e
access o c edi acili ies equi ed o a m inpu s. Undoub edly, adequa e access o c edi
plays a i al ole o a m business success, pa icula ly o poo u al households who
Adm. Sci. 2024,14, 256 5 o 18
depend en i ely on ag icul u e o sus ainable li ing (Depa men o Ag icul u e Fo es y
and Fishe ies 2014;Owusu-An wi and An wi 2010).
P esen ly, households ace eno mous challenges in accessing c edi om o mal c edi
ma ke s mainly because o inadequa e in o ma ion exace ba ed by inadequa e c edi dis i-
bu ion channels and unnecessa y bu eauc acy. The implausible easons usually adduced
by c edi ins i u ions o no lending o ag i-p eneu s a e because o he high a e o de-
aul , unce ain y, inadequa e colla e al, he minimal a e o in e es on ag icul u al loan,
long- e m mo a o ium, and he associa ed isk inhe en in a m business (Del Giudice e al.
2017). The less esou ced ag i-p eneu s o en esul in g oup lending as a mechanism o
add ess c edi challenges. Howe e , g oup lending h ough coope a i es enhances social
ela ions and iendships while enjoying he bene i s o pulling esou ces oge he o
he o e all ad an age. Ne e heless, emo ing es ic ions in accessing c edi s can assis
households o cushion he e ec s o shocks and ulne abili ies. The Sou h A ican c edi
ma ke , e en hough obus , p esen s limi a ions in he p o ision o c edi in i s p esen
o m o e ec i ely p o ide c edi o u al a m businesses and poo households due o
dis o ed in o ma ion. The households con inue o be ma ginalized and pushed a he
away om accessing c edi . The mic o-lende s in Sou h A ica ocus only on he o mally
employed people so ha hei sala ies could be apped o se e as colla e al o ensu e
epaymen o he loans. The loans a e ad anced a high in e es a es. Some s a ed o o e
mic o loans, which a e no secu ed by p ope y, bu by a pledge o he bo owe ’s pension
o p o iden und. Mos poo households do no mee hese equi emen s and do no ha e
colla e al o aluable asse s o secu e c edi and a e also unable o a o d high in e es a es.
2.3. Ag i-P eneu ial Businesses
Ag i-p eneu ial businesses is Sou h A ica is mainly domina ed by small landholde s
and ope a ed a a ela i ely small scale. The e a e many iews and pe cep ions on whe he
hese smallholde s’ ag icul u al p ac ices could be ans o med in o comme cial a ms.
Howe e , deba e on he plausibili y o comme cializa ion models o ag i-p eneu busi-
nesses and i s ela i e ad an ages and disad an ages has been s i ed by some economis s,
de ailing smallholde a m business as he engine o po e y alle ia ion (Ranie i and
Ramos 2013;Demi güç-Kun e al. 2022). The highe ood p ices exace ba ed by clima e
change ha e inc eased ea s and doub s o he impending g ow h and comme cializa ion
o smallholde a m businesses in A ica (De Pu e e al. 2007). Ne e heless, in es men in
ag icul u e is d i en by nume ous ac o s, including he desi e o ace compe i ion o land
and subsidies. The incen i es and subsidies needed o s imula e g ow h in small-scale a m
businesses will be ealized h ough nume ous in e en ions, om bank assis ance o ma ke
de elopmen and echnology (Dina 2006;Eshel e al. 2019). Mo eo e , Fe a is e al. (2017),
asse ed ha he e a e h ee scena ios ha can boos ag i-p eneu ial comme cializa ion and
ans o ma ion in A ica. These scena ios include he ollowing: de elopmen in sciences
and echnology, he c ea ion o egional ma ke s o p o ide subsidies, and good go e nance
ha will assis in emphasizing long- e m ag a ian e o m. Ag icul u e comme cializa ion
in ol es changes om small scale a m business o a b oade ma ke -o ien ed sys em
ha includes inc easing g ow h uni s o ou pu , alue addi ion, and p epa a ion o bo h
domes ic and o eign ma ke s. The comme cializa ion o a m business is mo i a ed by eco-
nomic g ow h and ela i e success in ag icul u al p oduc ion (Fishe e al. 2016;Foxall and
Yani-de-So iano 2005). Ag i-p eneu s a e deposed o comme cializa ion only when he e
a e known po en ial bene i s associa ed wi h comme cializa ion and beha io al adop ion
decision (Guioma e al. 2018).
Fu he mo e, he eno mous ansac ion cos , oge he wi h luc ua ion in p ices in
ag icul u al ma ke s, a ec s subsidies and incen i es o ag i-p eneu s (Gab iele e al.
2020). The s a egies ha can assis in alle ia ing nume ous un a o able ansi ional
e ec s include suppo and in es men in a m in as uc u e, c op b eeding, esea ch,
ex ension se ices, secu ed land igh s and capi al ma ke libe aliza ion (Gama and Isaac
2022). Addi ionally, in es men in wa e esou ces, pa icula ly i iga ion schemes, is
Adm. Sci. 2024,14, 256 6 o 18
conside ed as a pa amoun and key de e minan o an inc ease in ood secu i y and
imp o ed li elihoods o u al de elopmen (Sha ma 2006;Haywa d 2013). Adequa e
ag icul u al inances enhance comme cializa ion, which means mo e han he sales o
a m ou pu bu encompasses p oduc choice and a m inpu use and he decisions based
on he ideology o p o i in ensi ica ion. Ag icul u al ma ke s play a dis inc i e ole in
he comme cializa ion o a m businesses and assis in educing he cos o exchanging
ag icul u al p oduc s. An app op ia e ag icul u al ma ke ing sys em no only educes
he cos o ansac ions bu assu es he s abili y o ood supply in ways ha bene i ag i-
p eneu s, ag icul u al ma ke e s, and consume s (Heba d and Lambe son 2017;In e nal
Labou O ganiza ion 2017). Howe e , he majo cons ain s inhe en in ag icul u al ma ke s
in A ican ag icul u e comp ise inadequa e in as uc u e, insu icien suppo se ices, he
inc easing cos o ansac ion, p ice ola ili y, and weak ins i u ional subsidy. Acco ding o
a s udy conduc ed in Tanzania, he ege able supply chain had a highe ma gin be ween he
p ice paid o ag i-p eneu s wi h small land holdings han he one paid o consume s. Ag i-
p eneu s wi h small land holdings a e inunda ed wi h inadequa e physical in as uc u es
such as s o age acili ies, anspo , ma ke in o ma ion, and access cascading he inc eased
cos o ope a ions (Wale and Chip upa 2021;Joh i e al. 2024). In con empo a y A ica,
ma ke ailu e eminiscence in he high cos o ansac ions a e widesp ead, culmina ing in
apping he u al a ming households in abjec po e y. The go e nmen policy posi ion
demons a es ha ma ke ailu e can be add essed by ensu ing adequa e inpu subsidy, bu
he cos o subsidy may limi he a ailabili y o unds o public in es men in anspo ,
ma ke s, and esea ch ha will s imula e sus ained g ow h in a m business.
2.4. Ag i-P eneu ial Resilience
Rela i e o ag icul u e, en ep eneu ship is simply deno ed as ag i-p eneu ship con-
sis en wi h he applica ion o con o mis en ep eneu ship p inciples and p ac ices in
ag icul u e (Juma 2011). Ag i-p eneu ship has a ious conno a ions, and o his s udy, i
is de ined as an ag icul u al business ha employs he ac o s o p oduc ion o e ec i e
u iliza ion. Ne e heless, ac o s in ag i-p eneu ship a e ag i-p eneu s who ope a e in a
plausible and dynamic en i onmen , while s ill lounde ing wi h h ea ened and nume ous
subjec i e challenges (Tejada and Punzalan 2012). In his ci cums ance, a me s gene ally
decide o adap and emb ace s a egies while ag i-p eneu s esul o modi ica ion o beha -
io o add ess hese challenges (Kazukauskas e al. 2014;Kau mann and Shams 2015). In
ou con empo a y socie ies, nume ous a ms and businesses ace a ca alog o challenges,
and discon inui ies occasioned by ins abili y wi hin he ambi o ope a ions (Khalilo and
Yi 2021), hus acing an e a ic u u e ha is b anded by unce ain ies. An eceden ly, i is
p oposed ha esilien o ganiza ions can manage unce ain ies by ole a ing and adjus ing
o en i onmen al aga ies (Saba ino 2016).
In heo y, he e m ‘ esilience’ has been conside ed as he capabili y o an o ganiza ion,
(in his scena io ag i-p eneu s) o esis ad e se condi ions (Lengnick-Hall e al. 2011).
Resilience conno es an abili y ha allows ag i-p eneu s o ake he app op ia e ac ion in
esponse o un o eseen and unan icipa ed occu ences ha may po en ially endange hei
con inued su i al (Kimhi e al. 2020). Resilien ag i-p eneu s emb ace a he han ebu
changes and ake isks o achie e p ede e mined goals. A a pe sonal le el, esilience
indica es how an indi idual adap s o a change in a ole o p ojec ; i illus a es how an
indi idual eco e s om a mis ake o a ailu e; o how a pe son pu sues a pe sonal goal
no wi hs anding he obs acles. The a ibu es o esilien ag i-p eneu s li e ally gi e hem
he s eng h and agili y o success. Consis en wi h o he de ini ions, de ine esilience as
he endu ing abili y o ag i-p eneu s o eco e quickly om shocks and ad e se e en s
and con inues o emain ele an in a m business.
2.5. Ag i-P eneu ial Success
Acco ding o (I.A. Agholo e al. 2024), ag i-p eneu ship is conside ed an ac i i y
encompassing he coo dina ion o all a m ope a ions, wi hin he alue chain. Ag i-
Adm. Sci. 2024,14, 256 7 o 18
p eneu ship unde aken has shown ema kable ele ance in oday’s pecunia y li e a u e,
p ima ily due o he con empo a y economic woes expe ienced by mos coun ies in ecen
imes. I is he desi e o an ag i-p eneu o ind and imbibe good business ideas and edesign
a p oac i e business model ha will imp o e hei a ming business o success (Zhai e al.
2019;Chadha and Du a 2020). This inna e desi e o ob ain and mee a ge s illus a es,
in pa , he meaning o success o some ag i-p eneu s. The e m success is subjec i e
and may no ca y a uni e sally accep ed de ini ion (McMichael 2009). Ne e heless, i is
h ough asc ibing alues and using measu emen me ics ha success can be analyzed, bu
consequen ly, one le el o quan i a i e echniques applied in measu ing success will be
lawed. Howe e , he p e equisi e o his s udy is o ob ain ope a ional measu es o a m
success. Ag i-p eneu s apply a m inancial pe o mance as a unila e al me ic o success,
bu nume ous s udies (Lusch e al. 2016;Mo is e al. 2005; and Mulaudzi e al. 2023) ha e
linked a m success o o he a iables, such as he le el o goal a ainmen achie ed by
an ag i-p eneu and second, he amoun o money ea ned om in es men (Nunnally
1978;O unoye 2017). In his con ex , an ag i-p eneu who has a ained a p ede e mined
goal may be seen as success ul, while o he s who ha e ecei ed su icien money om
a m in es men could also be said o be success ul. O he s use a m-le el me ics like
g ow h a e (size), su i al a e (exis ing), and emaining in a m business o p o ide a
sa is ac o y measu e o success. A unique p oblem o applying su i al a e alone is
ha no all ag i-p eneu s who emain in business can be ega ded as success ul. A new
su i ing a m may decide o educe in size o e ime by selling asse s in an icipa ion o
ailu e, while olde ag i-p eneu s may decide o educe in size by disposing asse s no
because o ailu e bu in an icipa ion o e i emen . Con e sely, a educ ion in a m size
o younge ag i-p eneu s may imply ha he owne ailed o ea n enough p o i o mee
o e head and loan epaymen and had o dispose o asse s o emain in business. On he
o he hand, an inc ease in a m size may deno e ha he owne ealized su icien a m
income and, he e o e, is assu ed o p o i (Kazukauskas e al. 2014). Thus, o nume ous
su i ing a ms, he a e o g ow h p o ides a use ul index abou success. Howe e , he
weakness o ocusing on g ow h only is ha a g ow h a e analysis o in e p e a ion is
limi ed o a known popula ion. While a g ow h a e analysis may iden i y he ac o s ha
hinde g ow h, i canno con incingly iden i y he de e minan s o ag i-p eneu ial su i al,
which is necessa y o success.
Addi ionally, se e al s udies (O unoye 2017;Ogujiuba e al. 2022) used a simple di-
cho omous a iable model o he illus a ion o a m success, neglec ing o ecognize ha
success can be seen pa ially and could be measu ed on a con inuum. Las ly, mos o hese
s udies did no examine household collec i e ac ion a ound a m success o how household
beha io a ec s esilience and a m success. Agains his backd op, his s udy a emp s o
close hese gaps and p o ide no el insigh s in o a m success and esilience. This s udy,
he e o e, hypo hesized as ollows: (i) The e is no signi ican posi i e co ela ion be ween
ag i-p eneu ial esilience and selec ed demog aphic cha ac e is ics. (ii) The e is no signi i-
can posi i e co ela ion be ween a m success and selec ed demog aphic cha ac e is ics.
3. Ma e ials and Me hods
3.1. S udy A ea
This su ey was conduc ed in he Ehlanzeni dis ic , Mbombela Local Municipali y,
Sou h A ica. Ehlanzeni include ou main local municipali ies: Nkomazi Local Municipal-
i y, Mbombela Local Municipali y, Thaba Chewu Local Municipali y and Bushbuck idge Lo-
cal Municipali y. Amongs he communi ies, six we e selec ed o he su ey, which include
Kayamazane, Mpakeni, Kabokweni, Je usalema, Maleku u, and Mahushu. Mbombela
has in e media e biome zones o g assland and sa annah. The a ea is associa ed wi h
mild win e s and summe ain alls wi h sub opical clima e, which a o s a m business.
The zone eco ds an a e age ain all o 300–500 mm annually wi h a o al su ace a ea o
5394 km
2
and is geog aphically posi ioned in 25
◦
25
′
30
′′
, 30
◦
55
′
0
′′
. Wi h a popula ion o
app oxima ely 588,794, which is domina ed by 89.4% black Sou h A icans, he mino i y
Adm. Sci. 2024,14, 256 8 o 18
acial g oups include A ikaans (0.9%), whi es (8.7%), and Indians (0.7%). The languages
spoken in he a ea include Swa i (78.7%), A ikaans (6.8%), English (4.6%), Tsonga (4.1%),
and he o he languages we e 5.8% (Mulaudzi e al. 2023). This a ea was conside ed o
his s udy because i is domina ed by ag i-p eneu s.
3.2. The App oach
The hypo hesis includes he ollowing: (i) A e he e signi ican posi i e co ela ions
be ween selec ed demog aphic cha ac e is ics and ag i-p eneu ial esilience? (ii) A e he e
signi ican posi i e co ela ions be ween selec ed ag i-p eneu ial esilience ai s and a m
success? The e o e, he di ec ion o his s udy is o ob ain an accu a e and ope a ional
measu e o (i) ag i-p eneu ial success and he co ela ion wi h selec ed demog aphic cha -
ac e is ics o ag i-p eneu s and (ii) he selec ed demog aphic cha ac e is ics and co ela ion
wi h ag i-p eneu ial esilience. This s udy adop ed a quan i a i e esea ch p ocedu e. The
sample size conside ed o his s udy was calcula ed using Slo in’s o mula, which allowed
us o es ima e he numbe o esponden s equi ed o gua an ee ealis ic accu acy o he
esul s wi h app op ia e p ecision (Tejad 2012). Acco ding o (Als e e 2008) o easons o
ac o analysis, a minimum o 100 esponden s may be allowed in any su ey. The sample
size ini ially conside ed o his s udy was 285 esponden s, bu his numbe could no be
eached because o he sca e ed se lemen pa e n o ag i-p eneu s.
We he e o e su eyed a o al o 200 a me s who we e willing and able o pa icipa e
in his s udy. In p epa a ion o he da a collec ion, 5 ained enume a o s we e assigned
o 20 a me s o a p e es su ey o he ques ionnai e i em o ensu e con en alidi y.
All esponden s who pa icipa ed in his s udy we e ei he p ac icing ag i-p eneu s a a
la ge o small scale. This s udy used he s uc u ed ques ionnai e di ided in o sec ions: (i)
demog aphic in o ma ion; (ii) ag i-p eneu ial esilience; and (iii) ag i-p eneu ial success.
In he da a analysis, desc ip i e s a is ics and a eg ession analysis we e employed
o a icula e esponses. The e sion 28 o he S a is ical Package o Social Sciences (SPSS)
so wa e was used o da a analysis. In compliance wi h e hical issues, all pa icipan s in
his s udy we e p e-in o med abou he objec i es o his s udy, con iden iali y assu ance,
anonymi y, and olun a y pa icipa ion. Howe e , he a iables employed in his s udy
we e measu ed and cong uen wi h he objec i e o ag i-p eneu ial esilience. S udies
showed ha di e en scales a e employed o de e mine he le els o esilience o indi iduals
(Wall e al. 2004;Pa ida e al. 2016;Fa oki 2018). In his s udy, he Conno –Da idson
Resilience Scale (CD-RISC) wi h 10 i ems, was used because he CD-RISC jus i ies he bes
psychome ic cha ac e is ics ha po ay he le els o ag i-p eneu esilience. The scale
i ems we e g adua ed and anked on a 5-poin scale om 1 o 5. Whe e 1 = “does no
desc ibe me a all” o “desc ibe me e y well”. A simila s udy (Pa el e al. 2019;Pingali
e al. 2019) also employed he same scale, and subsequen ly, his s udy ob ained a C onbach
alpha alue o 0.96, indica ing op imum eliabili y. Addi ionally, we an he ac o analysis
o ce i y he eliabili y o he a iable, which ga e one ac o om he ou i ems. The ou
i ems we e he ollowing: I igo ously explo e ways o es o e he losses I encoun e in li e;
I us ha I can de elop in posi i e ways by dealing wi h complica ed si ua ions; I hun
o inno a i e ways o change di icul si ua ions; and i espec i e o wha happens o me,
I us I can con ol my esponse o i . The ea e , a composi e measu e o ag i-p eneu ial
esilience was calcula ed by inding he a e age o each sco e. In he analysis, he ou
i ems we e used as dependen a iables, while he ag i-p eneu ial success a iables we e
used as independen a iables.
In measu ing ag i-p eneu ial success, a i e-poin Like scale ha anged om
1—s ongly ag eed o 5—s ongly disag ee was used. The i ems a e he ollowing: (i) “I
conside mysel success ul i I am pe sonally sa is ied wi h my li e and a m business”;
(ii) “I su pass my a m business goals ha I se ou o achie e”; (iii) “my a m business
g ows cons an ly”, and (i ) “my a m business g ows in he e u ns on in es men ”. These
ou i ems we e a e aged o gi e he mean sco e o ag i-p eneu ial success (Shaul e al.
2024;Pe i e al. 2019). The eliabili y o he scale was also es ed, and
α
= 0.93 was ob ained.
Adm. Sci. 2024,14, 256 15 o 18
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