Statistical Results of Activities Categorization in Czech Agricultural Companies

Abstract

In today's competitive environment, to identify and correctly adjust the individual components of the business model is an important strategic device for every entrepreneur. This paper (preliminary study) deals with different types of business models applied to the sector of small and medium-size farms in the Czech Republic. The main objective was to identify and categorize activities undertaken by Czech farmers into homogeneous clusters and offer recommendations on possible business model modification. The research was based on data from the Farm Accountancy Data Network (hereafter FADN). The principal component analysis and cluster analysis were carried out as part of the assessment, under which farms are categorized into homogeneous groups. The results showed that the farms surveyed can be categorized according to similar economic characteristics, production plans, and implementation processes into three basic clusters. The first business model is elaborated for the classic field production and various kinds of vegetable or livestock production, the second model for the special crop and livestock production, and the third one for the animal production. The use of FADN data and the fact that most Czech agricultural companies are of small- and medium-size should be taken into account as limiting factors of the study.