Abstract:
This study explores the determinants that influence rural farmers in
Sri Lanka to establish agricultural-based business ventures. The
agricultural sector plays a crucial role in strengthening the rural
economy by providing both direct and indirect employment
opportunities; however, rural communities face challenges such as
unstable Income, unemployment, price fluctuations, labor
shortages, youth migration, and land fragmentation. A qualitative
case study approach was used, with primary data collected through
a pre-tested interview guide from 10 purposively selected farmers
who had already started agri-businesses. Data were analyzed using
thematic analysis. Findings revealed that key factors motivating
farmers to start businesses included the desire to earn profit rather
than a salary, limited job opportunities, financial ability, availability
of production factors, willingness to take risks, the aspiration to be
independent, education and vocational training, family and
stakeholder support, and access to excess labor or time. The study
concludes that profit orientation, lack of alternative employment,
financial resources, infrastructure, and family support are the most
significant determinants of rural agri-entrepreneurship.
Respondents also noted that government regulations negatively
affected business growth and expressed dissatisfaction with
government support. The study recommends financial and capital
assistance, knowledge and awareness programs, and stronger
government engagement with rural communities to promote
sustainable agri-business development.
