Factors affecting risk perceptions of young entrepreneurs in agricultural startup business

Abstract

Young entrepreneurs often experience failure in maintaining the startup businesses they build. This also happens to entrepreneurs in the agricultural sector. This causes them to be more aware of risks. This study aims to find out what types of risks actually makes them insecure and turns into a risk averse person which will hinder the development of their startup business. The risk perceptions discussed in this study include production risks, marketing risks, financial risks and human resource risks. The assessed production risks are related to the risks to production inputs, use of production technology, climate and pests and diseases. The risks associated with marketing are risks related to post-harvest processing, sales and market prices. The financial risks mentioned is related to the availability of credit and interest. The risks associated with human resources is a matter of labour availability as well as health. The method used is multiple linear regression to look for factors that influence the perceptions of young entrepreneurs towards risks.