Farming under Urban Pressure: Business Models and Success Factors of Peri-Urban Farms

Abstract

This study aims to identify the success factors and main barriers and threats to developing peri-urban farms implementing various business models. For that purpose, a survey was conducted among a group of Polish farms located in the areas surrounding the largest Polish cities. Farms achieving economic success and implementing different business models were selected. The analyses were based on the concept of the business model developed by Osterwalder. The research shows that in recent years (due to the COVID-19 pandemic, among other things), there has been a considerable convergence in employed business solutions. The convergence process is particularly evident in the customer side of business models, i.e., customer relationships and channels. According to the respondents, the success of peri-urban farms is determined mainly by three groups of factors: (1) motivation, diligence, and creativity, (2) the high quality of products and services, and (3) the cultivation of deep bonds with customers. Thus, success comes from within the enterprise (relational capital), but the customer (service-dominant logic) is central to business model development. Farm managers indicated relatively few problems and barriers in their farms’ development process. However, urban pressure (an external factor independent from farm managers) was considered the most important factor. The research enabled the presentation of the best business solutions and formulation of a few recommendations for peri-urban farming development.