Timonen, Raija
(Helsingin yliopisto, taloustieteen laitos, 2000)
Julkaisuja
The aim of the study was to search for relationships between entrepreneurship, management and success in farm businesses. Entrepreneurship (’yrittävyys’ in Finnish) is considered as a qualitative characteristic of a person. It is defined as the combination of certain values and attitudes, which are concept of human being; attitudes towards property, labour and uncertainty as well as innovativeness. Management is considered as a labour process on three levels: the institutional level, the economical level and the operative level. Entrepreneurship was measured with a one-dimensional construction called ideology of entrepreneurship. The effectiveness of management on different levels was measured with sum variables. The empirical data of the study was collected from bookkeeping farms in the region of Southern Finland. The main conclusions of the study are as follows.
Well-educated farmers and farmers of large farms were more entrepreneurial and more effective as managers than those with lower education and smaller farms. The more entrepreneurial the orientation of the farmer, the higher the effectiveness of management on all the three levels. Innovative farmers and farmers who are willing to take risks were more effective as managers than the less innovative and the risk minimizers. The score on the measure of ideology of entrepreneurship and the coefficient of profitability were positively correlated. The correlation was higher on small farms than on large farms. Three out of five components of ideology of entrepreneurship correlated with the coefficient of profitability on a significant level. The components were attitudes toward property, labour and uncertainty. The scores on the measures of effectiveness on all the managerial levels had a stronger relationship with the technical success (average yield) than with the economical success (coefficient of profitability). Regression analysis demonstrated that besides arable area entrepreneurship is a significant predictor of economical success. Other variables in the model were forest area, insitutional effectiveness and the production line. The model explained 39 percent of the variance in the coefficient of profitability.