Entrepreneurial Skills in Agribusiness Management

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Entrepreneurial Skills in Agribusiness Management

• Ag Econ 415
• Larry W Van Tassell

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• Why do people go into
• agriculture?

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What is an Entrepreneur?
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What is an Entrepreneur?

• A rational decision maker who assumes the risk
  and provides the management for the firm.
  Cantillon, circa 1700
• Mill (1848) is credited with bringing the term
  into general use among economists.
• Focused on risk bearing as the key
  differentiating factor between entrepreneurs and
  managers

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What is an Entrepreneur?

• One who sees an opportunity, sizes up its value,
  and finds the resources to make the most of
  it. NxLeveL

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What is an Entrepreneur?Sadler-Smith et al.,
2003, JSBM

• Proposition 1a
• There will be a positive relationship between
  entrepreneurial style and those managerial
  behaviors that
• (1) promote a culture of creativity and risk
  taking
• (2) create flat informal structures
• (3) formulate strategy in order to take advantage
  of identified objectives

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What is an Entrepreneur? Sadler-Smith et al.,
2003, JSBM

• Proposition 1b
• There will be a negative relationship between
  entrepreneurial style and those managerial
  behaviors that emphasize planning, control,
  monitoring, evaluation, and formalized
  organization structures.

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What is an Entrepreneur? Sadler-Smith et al.,
2003, JSBM

• Proposition 2
• There will be a positive relationship between
  entrepreneurial style and firm type (high growth)

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Type of Entrepreneur(Smith and Miner)

• Craftsman
• narrowness in education and training
• low social awareness and involvement
• a feeling of incompetence in dealing with the
  social environment
• a limited time orientation.

• Opportunistic
• breadth in education and training
• high social awareness and involvement
• confidence in their ability to deal with the
  social environment
• an awareness of, and orientation to, the future

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Type of Entrepreneur(Smith and Miner)

• The more the individual fit the craftsman model,
  the greater the likelihood that the firm would be
  rigid in nature.
• The greater the degree of fit with the
  opportunistic model, the more probable it was the
  firm would be changing and adaptive.
• Adaptive firms headed by opportunistic
  entrepreneurs were found to have experienced
  rates of sales growth 8.8 times as great as rigid
  firms headed by craftsman.

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Type of Entrepreneur(Smith and Miner)

• The type of person who can create an organization
  as an entrepreneur is different in numerous
  respects from the type that can manage it at some
  subsequent stage of growth.

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Small Business Owner

• An individual who establishes and manages a
  business for the principal purpose of furthering
  personal goals.
• The business must be the primary source of income
  and will consume the majority of ones time and
  resources
• The owner perceives the business as an extension
  of his or her personality, intricately bound with
  family needs and desires.

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• Is it wrong not to be an entrepreneur?

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Are Entrepreneurs Born or Made?

• Most of what you hear about entrepreneurship is
  all wrong. Its not magic its not mysterious
  and it has nothing to do with genes. Its a
  discipline, and, like any discipline, it can be
  learned. Peter Drucker

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Entrepreneurial or NOT? (NxLeveL)
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Entrepreneurial or NOT? (NxLeveL)
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Entrepreneurial or NOT? (NxLeveL)
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Entrepreneurial or NOT? (NxLeveL)