Determinants of Agri-Based Venture Creation Among Rural Farmers in Sri Lanka: A Qualitative Case Study

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.