Agricultural entrepreneurship propensity among graduating class university students in Ethiopia

Purpose University students are one of the youth groups with the most entrepreneurial vitality and potential, and identifying the ways to cultivate and nurture their motivations for entrepreneurship careers, especially in agriculture, remains vital for developing countries like Ethiopia. However, empirical studies on the factors affecting students’ propensity to agricultural entrepreneurship are scanty in Ethiopia. The main objective of this study was to analyze the determinants of Graduating Class (GC) university students’ propensity to be agricultural entrepreneurs after graduation, using resources-based theory, human capital theory, social capital theory and institutional theory as theoretical frameworks. Design/methodology/approach The simple random stratified sampling technique was employed to select 325 respondent students. Cross-sectional data were collected through a self-administered questionnaire. Data analysis was performed using descriptive analysis and the logistic regression model. Findings The descriptive analysis showed that 64% of the students had the propensity to pursue careers in agriculture. The binary logistic regression results revealed that age, faculty, residential background (rural), perceived educational support, perceived social recognition, agricultural entrepreneurial attitude and prior agribusiness experience increased the odds of becoming agricultural entrepreneurs for students. However, perceived institutional support and perceived credit access decreased students’ propensity for agricultural entrepreneurship. In this study, gender and grade point average showed no significant effects. Research limitations/implications Although it offers several insightful implications, this study has limitations too. First, it is based on cross-sectional data collected at a given point in time. Second, it relied on a single university to analyze the determinants of agricultural entrepreneurship. Third, the data were collected through a questionnaire, which may have allowed respondents to hide their true characteristics, which in turn might have affected the results of the study. Thus, future studies have the room to improve the accuracy of results using panel data, considering a large number of Ethiopian youth and enhance the generalizability of the results. Originality/value To the best of our knowledge, our study is the first one to create accurate proxy explanatory variables for the context of agricultural entrepreneurship. This study also contributes to literature by extending the application of established theories, including resource-based theory, human capital theory, social capital theory and institutional theory, in the context of students’ propensity to agricultural entrepreneurship.