Perceptions of the Institutional and Support Environment amongst Young Agricultural Entrepreneurs in Laos

Abstract

Efforts to achieve inclusive and sustainable agricultural-sector growth in developing economies will benefit from agricultural entrepreneurship (agripreneurship) by young farmers. However, challenges that hinder transition from subsistence to commercial agriculture remain. A better understanding of enablers and constraints that young farmers experience can facilitate the development of an enabling environment for sustainably transitioning from subsistence into commercial agriculture. We interviewed 74 young agricultural entrepreneurs (agripreneurs) in Laos, a country with a young and highly rural population, to explore their perceptions of institutions and support functions that enable or limit agripreneurship. Respondents reported that institutions and support functions have generally improved to make agripreneurship easier than before, with infrastructure, logistics, and new platforms for information sharing, banking, marketing, and delivery identified as specific improvements. However, agripreneurs identified weaknesses in the nature, scope, and quality of agricultural information and extension services that limit their performance; difficulties in accessing loans with favorable conditions, which discourages investment; opaque and costly payments and red tape processes that frustrate business establishment, operations, and regulatory compliance; and a lack of targeted policy actions towards enabling youth agripreneurship, which leaves youth feeling unsupported. Improvements in infrastructure, promotion of agri-careers, and more transparency of taxation, registration, and administration fees/systems are recommended.