A CB-SEM Approach to Modelling Agri-preneurship Development Prospects in Haryana, India

Abstract

Agri-Entrepreneurship Development (AED) refers to a process wherein people are equipped with necessary knowledge, skills and competencies so that they may run business on their own. In this purview, we assert that entrepreneurial competencies and managerial capacity play an imperative role as the markers of ‘necessary knowledge, skills and competencies’ that mediate the relationship between institutional support as the supportive factor and farm business performance as a qualitative measure of AED. We further argue that these mediators positively and independently interact with institutional support and farm business performance. The proposed conceptual model is tested with covariance-based structural equation modelling approach using survey data from 240 agri-entrepreneurs in Haryana. Our findings demonstrate that institutional support exercises both direct and indirect positive effects on farm business performance, with the latter being mediated by managerial capacity and entrepreneurial competencies. Limitations and future research have also been discussed.