The influence of certain entrepreneurial variables on economic success in farming

The first study of the author dealing with the influence of certain entrepreneurial variables on economic success was carried out in Sweden more than two decades ago. The findings from this study were that a rationalistic way of thinking seems to be relatively common among farmers with vocational-theoretical education while emotional factors take a relatively more prominent place among farmers with only primary school education. The economic success was higher for farm entrepreneurs with at least agricultural-vocational secondary school education than for entrepreneurs with only formal primary school education. In later studies carried out in Finland during the period 1954–1970, the influence of three entrepreneurial variables was mapped out, viz. the age of the farm entrepreneur, his theoretical vocational education and his mental ability. The studies revealed that a marked successive improvement of profitability had taken place in farm groups which were objects of intensified advisory services and farm planning, but no corresponding development was seen in control farm groups outside this activity. Furthermore it was evident that younger entrepreneurs, entrepreneurs in a better-ability subgroup, as well as farm entrepreneurs with theoretical-vocational education profited more by farm planning than did the opposite sub-groups. Also there was a clear indication that the favourable development brought about by farm business planning and intensified advisory services was a lasting one.