Sayed Jalil Hashimi ¹*; Muhammad Asef Shaiq ²

1, Agricultural Economics and Extension Department, Faculty of Agriculture, University of Bamyan, Bamyan, Afghanistan

2, Agricultural Extension and Economic Department, Faculty of Agriculture, Baghlan University, Baghlan, Afghanistan

 

Manuscript link
http://dx.doi.org/10.30493/DAS.2025.507024

Abstract

Agricultural entrepreneurship is considered one of the most important rural and urban development strategies today. Although entrepreneurship is not the only solution for job creation and increasing the income of rural people, it is certainly the most effective and rapid approach. This research aims to examine the factors affecting agricultural entrepreneurship development in the Bamyan Province center. For that purpose, a quantitative methodology using a non-experimental (survey) strategy was utilized. The main research tool was a questionnaire with a Cronbach’s alpha reliability score of 0.767. The statistical population of this research consists of all agricultural entrepreneurs in the Bamyan Province center, with a sample size of 106 selected using Cochran’s formula. In addition to descriptive statistics, exploratory factor analysis was used to analyze data. The results of the exploratory factor analysis indicate that six factors (knowledge and awareness, infrastructure, self-confidence, government support, economic factors, and educational and human support) account for 69.28% of the total observed variance in participants’ opinions regarding the development of agricultural entrepreneurship in the study area. Among these, knowledge and awareness have the greatest impact, while educational and human support have the least. The findings of this study can provide valuable insights for stakeholders and officials in the field of entrepreneurship in Afghanistan.

Keywords: Agricultural entrepreneurship, Development, Factor Analysis, Infrastructure, Bamyan

Introduction

Entrepreneurship is the methodical identification, building, and running of new and creative business ideas [1]. This process is carried out by individuals who, by will, tenacity, imagination, and invention, turn creative ideas into feasible business operations, therefore promoting expansion and development inside their enterprises [2]. Entrepreneurship is extremely significant in both the economic system and society [3-5]. The initiative creates jobs, drives economic development, produces social and financial value, supports innovation and technological progress, improves living conditions, and assist community’s positive transformation. Entrepreneurship appears in many different economic and social spheres including the development of new goods and services, the use of modern technologies, the founding and launching of businesses, the discovery of untapped markets, and the delivery of creative solutions to society problems [6].

Examining the factors shaping the development of agricultural entrepreneurship provides insightful analysis of the challenges and opportunities in this field. Improvement of agricultural infrastructure is a vital factor in the evolution of agricultural entrepreneurship. Essential infrastructures that can support the abilities of agricultural entrepreneurs and enable sustainable development are: efficient use of agricultural land; suitable distribution of seeds and fertilizers; modern irrigation systems; and the evolution of agricultural technologies [7]. The marketing and distribution of agricultural products presents great difficulty for the development of agricultural entrepreneurship. Establishing direct sales channels, offering financial resources and support for accessing both domestic and foreign markets, as well as creating suitable supply chains and logistics for product movement all reflect possible ways to promote agricultural entrepreneurship. Moreover, agricultural entrepreneurs’ education and training are highly valued in this context. Specialized and practical training in fields including agriculture, business management, marketing, and entrepreneurial skills provides agricultural entrepreneurs the tools they need to improve their business management skills, therefore promoting more growth and development [6]. In Afghanistan, a positive and significant relationship was found between psychological, educational, economic, socio-cultural, and policy-making factors and the development of entrepreneurial skills [8].

Establishing a business presents principal difficulties including providing funds, government policy impact, ongoing societal economic concerns, and widespread job market mistrust. A previous study examined the aspects and dimensions shaping the growth of agricultural entrepreneurship in rural areas [9]. The researchers investigated the effects of the four different groups of influencing variables from the perspectives of entrepreneurs and non-entrepreneurs. From a viewpoint of conventional agricultural practitioners, the economic, environmental-infrastructural, social, and institutional components were of great relevance. Entrepreneurs ranked the economic concerns first, followed by social issues, environmental-infrastructural, and institutional components last. Another study showed that the improvement of entrepreneurship is greatly influenced by several variables, including economic, promotional, behavioral, and psychological factors. Among these, economic elements stood out as the most influential, while psychological elements were found to be the least significant [10]. Economic, personal, and structural issues were found in another study to be the main barriers to entrepreneurial growth [11]. A research conducted in Malaysia showed that the elements of attitude, acceptance, and knowledge have a major influence on the choices of young individuals to follow agricultural entrepreneurship [12]. A further study found that the most important variables affecting agricultural development are educational level, entrepreneurial abilities, economic considerations, and supporting elements [13]. Other research has found that demographic factors and social capital issues are the main drivers of agricultural entrepreneurial development [14].

Entrepreneurship is a key driver of value creation in agricultural products and has a major impact on market dynamics including globalization, population growth, changes in the agricultural sector, food security, and market competition. Therefore, agriculture is among the most important economic sectors in Bamyan Province. It plays a key role in providing people with jobs and means of subsistence. Many residents have therefore participated in rural entrepreneurial activities [15]. Though many of them live in rural areas, a large portion of the population still struggles with poverty and unemployment [16][17].

Renowned as a key area within Afghanistan, the province of Bamyan stands out for its substantial historic value and remarkable natural and cultural qualities. Notwithstanding its considerable potential, this province has struggled to effectively leverage its entrepreneurial capabilities owing to prevailing economic challenges. The progress of entrepreneurial activities in Bamyan has the possibility to improve economic growth, create jobs, and raise the general quality of life for the residents. Reaching these goals depends on knowing and investigating the elements influencing entrepreneurial growth. Important factors that can greatly affect this process are those including availability of financial resources, adequate infrastructure, government support, entrepreneurial education and skills, as well as the prevailing entrepreneurial culture in the community.

This paper examines the factors affecting entrepreneurial development in Bamyan province. The present study seeks to methodically find, classify, and rank the several elements affecting entrepreneurial growth in Bamyan. The findings of this study offer insightful analysis for local businesses, educational institutions, and government officials, thereby assisting them to create and carry out efficient plans meant to promote sustainable entrepreneurial growth in Bamyan. Therefore, this study intends to answer the following question: What are the determinants influencing the advancement of agricultural entrepreneurship in the central region of Bamyan province?

Material and Methods

Study area

Bamyan Province is a prominent mountainous region in central Afghanistan. It is located 190 kilometers northwest of Kabul on the northern slopes of the Baba mountain range. The area is characterized by its cold winters when minimum temperature can drop to around -20°C. Bamyan makes up 2.8% of Afghanistan’s total area, with an area of 18,029 square kilometers. This province is characterized by the production of crops such as beans, potatoes, barley, and wheat. However, due to a severe lack of water resources, fragmented land ownership, extreme food poverty, and poor soil quality, a sizable portion of the land remains unproductive and inaccessible.

Research methodology

The questionnaire

The current research employed a quantitative methodology via a non-experimental survey procedure. The primary instrument utilized in this research was the questionnaire developed after a thorough review of the relevant background and existing theories pertaining to the research problem. The survey was structured into two primary sections. The initial section comprised the personal details of the respondents, while the subsequent section addressed the factors influencing agricultural entrepreneurship. The inquiries presented in the subsequent section were derived from the referenced materials [9][10][18-20]. Subsequently, this questionnaire underwent a thorough evaluation by faculty members from the Department of Agricultural Economics and Extension at Bamyan University. Following the incorporation of their feedback, the finalized questionnaire was developed as a closed format, comprising twenty queries including demographic inquiries. The spectrum of measurement employed for the data encompassed nominal, ordinal (utilizing a five-level Likert scale), and interval scales, contingent upon the specific type of data being analyzed.

Sample selection

The statistical population of this study comprises agricultural entrepreneurs in Bamyan Province center. Cochran’s formula was applied to the unspecified population, yielding a sample size of 106.

Where:

Z_∝/2: Critical value from the standard normal distribution (based on 90% confidence level).

p: Estimated proportion of the population with a certain characteristic (0.5 for maximum variability).

q: (1−p) Estimated proportion without the characteristic.

e: Margin of error

In order to evaluate the sufficiency of the sample size, the Kaiser–Meyer–Olkin (KMO) coefficient was utilized. The KMO value, representing sample adequacy, was determined to be 0.708 at the 99% confidence level, suggesting that the sample size is adequate for conducting factor analysis. The snowball sampling technique was utilized owing to the absence of a definitive registry of agricultural entrepreneurs. This strategy is typically utilized when there is minimal or no information regarding the examined population, whereby each participant (interviewed entrepreneur) would refer another entrepreneur to partake in the research.

Data collection and analysis

The method of data collection utilized involved conducting face-to-face interviews, following a comprehensive explanation of the study’s objectives and obtaining the participant’s consent to engage in the research anonymously. Bartlett’s test was applied to ascertain the correlation among the data for the purpose of performing factor analysis. The results of Bartlett’s test revealed a chi-square value of 765.395 df=153, which was significant at the 1% error level. This finding suggests that the requisite correlation for performing factor analysis among the variables is present.

Following the collection of data, inferential statistics and exploratory factor analysis were employed. In this study, a total of 17 factors were incorporated into the exploratory factor analysis to ascertain the elements that impact the development of entrepreneurship. All statistical analyses were conducted utilizing SPSS software version 26.

Results

Descriptive statistics

The ages of the agricultural entrepreneurs (respondents) varied from 24 to 52 years, with an average of 35.46±5.77 years. The predominant age group was 30-40 years, comprising 66% of the sample analyzed (Fig. 1 A). The number of family laborers contributing to entrepreneurship ranged from 1 to 5, with a mean of 2.84±0.984. The predominant observation was fewer than 3 family laborers, whereas the least common observation was more than 4 family laborers (Fig. 1 B). Beekeeping constituted the predominant entrepreneurial activity in the examined sample at 48%, succeeded by poultry farming at 23%, vegetable farming at 22%, fish farming at 4%, and cow breeding at 3% (Fig. 1 C).

Factor analysis of agricultural entrepreneurship development

The entire variation explained by a specific principal component is represented by Eigenvalues (Table 1). The initial section enumerates the eigenvalues of each factor together with the explained variance attributable to each factor from the total data. Factors with eigenvalues below one are omitted from the factor analysis as they do not contribute to the total explained variance. The second section comprises the eigenvalues, variance percentages, and cumulative variance for the residual components in the study when the selected factors remain unrotated. The final section enumerates the eigenvalues of the residual factors post-rotation, indicating the total variance accounted for by these factors. In summary, six principal elements persist accounting for a significant 69.28% of the total observed variance; hence, the 17 examined variables were classified into these six overarching categories.

This rotating matrix of variables displays the factor loadings of each categorical variable across the six principal components (Table 2). The first factor, termed ‘Knowledge and Awareness’, has an eigenvalue of 3.304, indicating it accounts for 18.36% of the total variance. Four variables have been incorporated within this component. Of the four variables examined in this factor, ‘Preparedness and ability to manage unforeseen risks’ (e.g., floods, droughts, frost, etc.) with a loading of 0.783, and ‘Knowledge of market product rates’ with a loading of 0.761, have exerted the most substantial influence on agricultural entrepreneurship in the analyzed region. The second factor, termed ‘Infrastructure’, possesses an eigenvalue of 2.737, signifying its capacity to independently account for 15.20% of the variance. Four variables have been incorporated into this factor. The variables exerting the greatest influence on agricultural entrepreneurship in the examined region include the availability of sufficient infrastructure—specifically water, electricity, and gas—with a loading of 0.783; ‘Market entry rules and regulations’ (including permits and licenses) with a loading of 0.765; and the accessibility of transportation for the conveyance of goods to sales centers, which has a loading of 0.728. The third factor, designated ‘Self-Confidence’, possesses an eigenvalue of 1.928 and accounts for 10.71% of the variance autonomously. Three variables have been incorporated within this component. The variables ‘Motivation to change the quality of life’ with a loading of 0.711 and ‘Willingness to confront obstacles and difficulties’ with a loading of 0.704 exert the most substantial influence on agricultural entrepreneurship in the examined region. The fourth, fifth, and sixth factors concentrated on ‘Government Support’, ‘Economic’ and ‘Educational and Human Support’ and explained 8.715%, 8.213%, 8.089% of the variance, respectively.

Discussion

Bamyan province possesses substantial potential for the advancement of agricultural business due to its abundant natural resources and fertile terrain. Nevertheless, various obstacles have impeded the complete application of these capabilities. Entrepreneurs and farmers in Bamyan encounter limited access to contemporary technologies and modern agricultural practices, which has created obstacles to their competitiveness in both domestic and international markets. Furthermore, insufficient infrastructure, such as roads, irrigation systems, and storage facilities, has impeded the advancement of agricultural entrepreneurship in Bamyan, elevating production costs and diminishing market access. This study aimed to determine the elements affecting entrepreneurship development from the viewpoint of agricultural entrepreneurs in Bamyan province.

Descriptive statistics reveal that the entrepreneurs examined have a mean age of 35. More than 80% are aged 24 to 40, indicating that the investigated population is mostly young, which may facilitate the advancement of agricultural business. Furthermore, they possess an average of over 7 years of entrepreneurial experience (data not shown), signifying adequate capability to operate their enterprises. However, more than 60% of the examined entrepreneurs own less than a high school education (data not shown), underscoring the necessity for enhanced educational initiatives. Previous works showed that younger individuals are usually more open to innovation and adaption of new ideas [21], which is an extremely necessary trait in the modern agribusiness environment.

The exploratory factor analysis results reveal that six elements—knowledge and awareness, infrastructure, self-confidence, government assistance, economic considerations, and educational and human support—are significant in the advancement of agricultural entrepreneurship in the research area. These factors are previously reported as key elements in other agriculture entrepreneurship-oriented studies [9-12]. The findings indicated that knowledge and awareness were the most crucial factors in the advancement of agricultural entrepreneurship in the examined region. Knowledge and awareness are essential for the advancement of agricultural entrepreneurship [22][23] as these factors empower farmers to develop essential skills for improved management of their fields and resources. Moreover, through acquiring contemporary agricultural methodologies, businesses can enhance productivity and diminish expenses. Conversely, entrepreneurs’ cognizance of market trends and consumer demands enhances their ability to promote items more efficiently. By cultivating enough understanding, entrepreneurs can more effectively manage the risks linked to climate change and market volatility. This empowers them to make more informed judgments concerning their investments and resources. Ultimately, education and awareness serve as important elements in the advancement of agricultural entrepreneurship, enabling farmers to attain enhanced success.

The second significant component in the advancement of agricultural entrepreneurship, particularly from the viewpoint of entrepreneurs in this sector, is recognized as infrastructure, which constitutes around 15% of the overall variation. The enhancement of infrastructure is vital for a nation’s progress. These infrastructures enable the transportation of individuals and commodities, creating physical linkages across regions, which ultimately fosters economic development and improves the quality of social and economic life. Investment in infrastructure projects is a fundamental prerequisite for the continuity and durability of economic growth in any nation. Entrepreneurs invest just when sufficient amenities, including transportation, energy, telecommunications, water, and sanitation, are accessible. Consequently, enhancing infrastructure is vital as a fundamental element in the investment sector for entrepreneurs. The initial two factors represented 33.55% of the overall variation in the analyzed sample.  This observation is substantiated by the fact that nearly half of the participants were beekeepers.  A successful beekeeping enterprise, akin to any agribusiness, must be founded on scientific methodologies and market insight.  Beekeeping is distinguished by the diverse array of products that can be obtained.  Various forms of honey can be produced throughout the year, many of which are specific, such as wildflower honey, acacia honey, and alfalfa honey.  Furthermore, various products associated with beekeeping, such propolis, bee bread, and royal jelly, may necessitate distinct environments and methodologies for their production.  Consequently, a prosperous beekeeping enterprise necessitates a profound comprehension of both local and international markets to focus on certain, highly sought-after products instead of those with lower demand.  The heightened sensitivity of bees to environmental circumstances necessitates enhanced comprehension and preparedness, underscoring the importance of the first factor (Knowledge and awareness).  Furthermore, beekeeping necessitates dependable roadways and transportation methods for the seasonal relocation of bee hives, underscoring the significance of the second element (Infrastructure).

Self-confidence and self-assured entrepreneurs benefit from multiple advantages in diverse circumstances. Individuals possessing ample self-confidence are more inclined to attract clientele, investors, and business associates [24][25]. These individuals get increased respect and trust from their teams, facilitating superior decision-making and enhanced operational efficiency. Thus, self-confidence was acknowledged as the third crucial aspect in the advancement of agricultural entrepreneurship in the studied population.

The findings of this study reveal that governmental assistance for agricultural entrepreneurship development constitutes the fourth component, accounting for 8.7% of the total variance. The advancement of agricultural entrepreneurship is unattainable without governmental help. In the absence of such assistance, the trajectory of development becomes arduous and perhaps unviable. Government financial support for entrepreneurs promotes their advancement and alleviates numerous difficulties in their entrepreneurial endeavors. Access to investment and banking credit (Financial factor) is also crucial for farmers and agricultural entrepreneurs. Ample financial resources permit the acquisition of new technology, the expansion of cultivated area, and the commercialization of their goods. Attending to these economic elements and managing them can foster agricultural entrepreneurship and enhance production in this industry. The final identified component accounted for around 8% of the total variation and was designated as the educational component. Specialized expertise in agriculture undoubtedly equips entrepreneurs with knowledge of contemporary cultivation techniques, soil management, irrigation, and insect control. This technical expertise can enhance the performance and quality of agricultural products. Moreover, education may cultivate innovation and creativity in entrepreneurs. By fostering an environment that promotes creative thinking, entrepreneurs might generate innovative ideas for developing new agricultural products or services. In this context, educational activities are essential for cultivating entrepreneurs, as education serves as a foundational element of entrepreneurial development. The objective of entrepreneurship education is to foster and enhance creative and inventive individuals. Consequently, endorsing educational initiatives designed to cultivate creativity is acknowledged as a pivotal element in promoting entrepreneurship.

Conclusion

Agricultural entrepreneurship is a crucial strategy for rural development and economic advancement, significantly enhancing the economic and social conditions of rural areas. This paper evaluated the determinants affecting the emergence of agricultural entrepreneurship in central Bamyan province. The results demonstrate that multiple critical elements influence this process from the entrepreneurs’ point of view. The primary and most significant factor is knowledge and awareness, recognized as the predominant element. This suggests that increasing awareness and expertise among agricultural entrepreneurs might enhance performance and foster agricultural entrepreneurship development. The second crucial component is the advancement of infrastructure. The presence of suitable infrastructure, such as roads, irrigation systems, and local markets, enables entrepreneurs to effectively create and distribute their products. Consequently, investment in infrastructure enhancement should be integral to developmental initiatives. Self-assurance and self-confidence were considered the third factor as it enables entrepreneurs to undertake essential risks for initiating and growing agricultural enterprises. In this context, counseling and psychological support programs can enhance entrepreneurs’ self-confidence. The fourth aspect, government assistance, underscores the significance of legislation and political endorsement in agricultural entrepreneurship. The government ought to establish a conducive climate for entrepreneurial endeavors by offering subsidies, financial resources, and specialist advisory services. Ultimately, economic and educational elements are recognized as the least impactful; yet, they can still enhance the human and technical capabilities of entrepreneurs. This research’s findings can be a significant resource for stakeholders and policymakers in agricultural entrepreneurship in Afghanistan. It is advised that educational programs and infrastructural investment be prioritized in developmental policy-making. These measures can bolster agricultural entrepreneurship and ultimately elevate the economic and social standing of rural areas.

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Cite this article:

Hashimi, S. J., Shaiq, M. A. Factor analysis of key drivers shaping agricultural entrepreneurship in Bamyan, Afghanistan. DYSONA – Applied Science, 2025;6(2): 389-397. doi: 10.30493/das.2025.507024