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Tropentag, September 14 - 16, 2022, Prague

"Can agroecological farming feed the world? Farmers' and academia's views."


Food entrepreneurship: what matters for success: the case of young entrepreneurs in Ghana

Bernard Kwamena Cobbina Essel1, Miroslava Bavorov√°2, Kaechele Harald 3, Giri Prasad Kandel4

1Czech University of Life Sciences Prague, Fac. of Tropical AgriSciences - Dept. of Economics and Development, Czech Republic
2Czech University of Life Sciences Prague, Fac. of Tropical AgriSciences - Dept. of Economics and Development, Czech Republic
3Leibniz-Centre for Agricultural Landscape Research (ZALF),, institute of Socioeconomics, Germany
4Czech University of Life Sciences Prague, Fac. of Tropical AgriSciences, Dept. of Economics and Development, Czech Republic


Abstract


Youth unemployment has become a worrying issue and a canker in Sub-Saharan Africa and has often attracted the attention of policymakers and governments in the sub-region. For most young people, entrepreneurship, particularly Agri-entrepreneurship, provides a way out of unemployment and poverty. Based on this, the focus of the study was on young people in Ghana who work in agri-food processing micro and small businesses. The study aims to identify factors that influence the success (sales growth and employee growth) of agri-food processing. A cross-sectional survey was conducted among 244 young agri-food processing business owners selected using multi-stage sampling in Ghana's Northern, Ashanti and Greater Accra regions from May to June 2021. Descriptive analysis and multiple linear regression were used to determine success factors influencing Ghana's agri-food processing businesses. The descriptive analyses show that female entrepreneurs (82%) dominate the food-based micro and small businesses. Further, the business type is mainly sole proprietorship (81%), with insignificant numbers being partnerships (6%) and limited liability companies (4%). The regression results show that access to entrepreneurship training positively affects business success in sales growth and employee growth (p < 0.1). Similarly, entrepreneurship experience in a similar business positively affects business success in terms of sales growth (p < 0.1), whereas business registration and accessing credit from financial institutions negatively affect business success (p < 0.1). Based on our findings, emphasis should be placed on entrepreneurship training, provision of industrial attachment for young people who wants to venture into a particular area of food processing and lastly, an essential consequence of the findings is the need for improved support for access to financial capital at a moderate rate for business growth.


Keywords: Entrepreneur, entrepreneurship, food enterprises, human capital, youth


Contact Address: Bernard Kwamena Cobbina Essel, Czech University of Life Sciences Prague, Fac. of Tropical AgriSciences - Dept. of Economics and Development, 16500 Kamýcká 129 , Czech Republic, e-mail: esselb@ftz.czu.cz


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