Analysis of Business Risk Measurement and Factors Influencing Plantation-Based Farming Cooperatives: Evidence from Guizhou Province, China

Plantation-based farming cooperatives are important carriers to promote agricultural and rural modernization and increase farmers’ income. Their risk management is related not only to their own sustainable development but also to the practical interests of farmers. Based on the survey data of 226 sample cooperatives in Guizhou Province, this study measures the business risk of plantation-based farming cooperatives via factor analysis and empirically tests its influencing factors using a structural equation model. This research shows that there are different types of operational risks in plantation-based farming cooperatives, and the order of these risks is as follows: market risk (0.334) > policy risk (0.162) > natural risk (0.140) > technical risk (0.104) > management risk (0.097). In terms of the factors influencing business risk, the impact effect value of the economic environment is 0.522, making it the most important external interference factor. The technology environment and policy environment have a greater impact on business risk (effect values of 0.323 and 0.219, respectively). The effect of the social service environment (an effect value of 0.114) is relatively weak. The internal factor, operator characteristics, is the core factor (an effect value of 0.533) that affects the business risk of plantation-based farming cooperatives, which determines the development prospects of the cooperatives. Resource endowment is an important internal factor affecting the business risk of cooperatives (an effect value of 0.331). According to the conclusions of our research, some policy implications on how to promote the high-quality development of plantation-based farming cooperatives are presented, i.e., to refine the policy support for plantation-based farming cooperatives, optimize the economic environment of the agricultural market, further improve agricultural infrastructure, deepen the reform of the agricultural land transfer system, and improve the internal management level of cooperatives.