Policy Implications

The literature review defined policy implications as findings and conclusions that, as a consequence of the research undertaken, indicate:

· how regional or local governments could take action to improve or enhance entrepreneurial development;

· how management competency can be developed; ƒ how local economies and communities can be developed;

· how sustainable entrepreneurial organisations can be developed; or,

· how universities can develop entrepreneurial and enterprising graduates.

According to Gnyawali and Fogel (1994) the entrepreneurial environment can be grouped into five dimensions: 1) government policies and procedures, 2) socio-economic conditions, 3) entrepreneurial and business skills, 4) financial support to businesses, and 5) non-financial support to businesses.

MacFarlane (1996) explored the relationship and interaction between the farm and the farmer and examined the related decision making process under conditions of agricultural and rural policy change. The findings are modelled and the author argues strongly for the importance of the work for policy makers.

Segmentation framework

There has been relatively little research that attempts systematically to segment the farm industry. Following Atherton and Lyon (2001) a segmentation framework was devised which segments three aspects of the farm and farmer:

· The personal characteristics of the farmer

· The characteristics of the farm enterprise

· The activities and processes undertaken by the farm.

In Atherton and Lyons’s original framework the ‘personality’ of the individual was designated as a key personal characteristic. In this iteration of the framework, this characteristic has been replaced with the concept of ‘entrepreneurial alertness’ derived from the theory of alertness (Kirzner, 1979).

The segments are depicted in the Annex.

The segmentation framework is not designed merely to determine business characteristics, activities and processes. It is intended to be used as an iterative device, which can in itself be used as a predictive tool.

This framework was designed for two reasons: firstly, because it offers a comprehensive mechanism for analysis of a particular sector and, secondly, because it enables the classification of farmers by the above mentioned aspects.

Furthermore, the framework identifies different types of entrepreneurial farmers. The resulting segmentation framework shows different types of entrepreneurial farmers and tends to reflect the strategic orientation of the farm.

Different strategic orientations in farming may require different skills. It is anticipated that the segmentation framework will seek to determine what these skills are. In this way a gap analysis is provided of the core skills which farmers possess and the skills and support they may need in order to become more entrepreneurially aware.

Its primary objective is to enable an overall picture to emerge of the farm sector. The questionnaire used in the main stage was designed using the segmentation framework.

Conclusions

This literature shows that the farming sector is a complex area.

Preliminary research indicates that farming is not a homogeneous sector; rather, it is one that operates in a complex and multi-faceted environment. To conceive of farmers as a homogeneous group is a mistake and hinders policy development. One of the significant questions posed is which should be the unit of analysis – the farmer or the farm? A further area for investigation is the concept of ‘constrained entrepreneurship’. By this it is suggested that farmers operate in a tightly constrained and regulated environment, which acts as a significant barrier to entrepreneurial activity.

The review suggested that farm entrepreneurship is a special case in the entrepreneurship discipline. Many questions were generated, which were the subject of the larger research project. The questions raised included: the effects of the changes in the CAP; the debates surrounding specialisation versus diversification; the barriers and opportunities that face farmers, how those barriers may be ranked and how they determine how farmers use networks.

Questions relating to farmers’ entrepreneurial skills form the core elements of this research project. The longer-term goal is to attempt to map the skills and competencies of farmers with a view to informing policy. The results of the search indicate that little research has been carried out in this area.

The segmentation framework was deemed useful for two reasons: firstly, because it offered a comprehensive mechanism for analysis of a particular sector and, secondly, because as a device it enabled the classification of farmers and farms by their entrepreneurial disposition and the processes and characteristics of the farm. Such a framework is unique in attempting to classify the farm sector.