Undergraduate students’ willingness to start own agribusiness venture after graduation: a Ghanaian case

Abstract

Agriculture and related businesses in Ghana for the past decades have been the preserve for the smallholder, aged and illiterate farmers. Meanwhile, hundreds of students graduate in Agricultural Sciences from the universities over the years. This study seeks to investigate potential determinants of the entrepreneurial spirit of agricultural students to do self-employed businesses in the agricultural sector. A survey of 165 undergraduate students of agriculture in the University of Cape Coast, Ghana was undertaken to examine factors that influence their decision to enter into agribusiness as a self-employment venture after graduation. The results show that the majority of the students were males (87%) and approximately, 67% were willing to enter into agribusiness after school. The factors that students perceived to be hindrance to entering into agribusiness was the market competition of agro-products with imported products, unstable prices of agro-products, absence of insurance policy for agribusiness and unfavourable land tenure arrangement in Ghana. Correlation analysis showed negative and significant relationship between students’ willingness to enter agribusiness as a self-employment venture and the following personal characteristics: (1) level of education of mother, (2) level of education of guardian other than parents, (3) students who live in farming communities and (4) students who undertake farming activities at home. There were also positive and significant relationships between students’ willingness to enter agribusiness and the following: (1) availability of market for agro-products, (2) accessibility of market for agro-products and (3) accessibility of transportation facilities for agribusiness. Regression analysis showed that (1) level of education of mother, (2) students living in farming communities, (3) accessibility of transportation facilities for agribusiness and (4) accessibility of market for agro-product were the factors that best predict undergraduate agricultural students’ willingness to enter into agribusiness as a self-employment venture after graduation. To motivate students to take agribusiness as self-employment after graduation, the study suggests the development of comprehensive and sustainable long-term policy to inspire and attract the youth into agribusiness; creation of conducive environment to minimise risk and constraints associated with agribusiness in Ghana