Entrepreneurship , market access and the role of water security in Urban-based farming.

Abstract

Due to the growing urban population and the need for food, urban farming (UF) has gained support and appeal globally in recent years. UF has gained attention from researchers due to the growing need for food in urban areas, and the COVID-19 pandemic constraints revealing the weakness of urban agri-food systems in developing countries. Urban residents have chosen to use their agricultural expertise to combat poverty due to unemployment and limited livelihood options in urban settings, which has led to the growth of UF. Through the construction of short food supply chains, job possibilities, and biodiversity enhancement, UF has enormous potential for social, economic, and environmental development. Urban-based farming has become essential to environmental sustainability, economic growth, and food security. As more entrepreneur’s venture into the urban agricultural sector, market access and water security become crucial to their success. There are opportunities and problems at the nexus of market accessibility, water security, and entrepreneurship. On the one hand, urban farmers have a large market potential due to the rising demand for food produced locally. However, their potential is constrained by poor infrastructure, scarce water supplies, and obstacles to market access. By thoroughly examining the effects of market accessibility and water security on urban farming entrepreneurs, this study seeks to shed light on tactics that can promote the growth of resilient, sustainable urban agriculture ecosystems. The specific objectives of the study were to (i) identify the determinants of market participation decisions and level of market participation among smallholder urban vegetable farmers. (ii) determine the drivers of agricultural entrepreneurship among smallholder urban vegetable farmers. (iii) assess the role of water security on market access and entrepreneurship among smallholder urban vegetable farmers. (iv) explore the relationship between water security, market access, and entrepreneurship among smallholder urban vegetable farmers. The study used primary data, which was collected from a total of 156 smallholder urban vegetable farmers who were selected using multi-stage sampling. The study focused on two areas in the Province of KwaZulu-Natal, namely Sobantu Township, which is an urban area, and Mphophomeni Township, which is a peri-urban area. While analyzing the factors affecting the decision of smallholder urban vegetable farmers to participate in the market, the logistic model revealed that market participation decision among smallholder urban vegetable farmers was significantly influenced by credit use, access to market information, access to labour, and owning a smartphone. Moreover, the fractional response model revealed that the level of market participation among smallholder urban vegetable farmers was significantly influenced by age, cooperative membership, free input, storage, and market training. The study also investigated the factors influencing agricultural entrepreneurship among smallholder urban vegetable farmers. The agricultural entrepreneurship index was created using principal component analysis and used as a dependent variable to determine factors influencing agricultural entrepreneurship in a two-step generalized least-squares (GLS) model for dealing with multiplicative heteroskedasticity. The results indicated that entrepreneurial spirit, entrepreneurial attitude, farming interest, gender, education, farming information, selling produce, and the distance to input suppliers were significant factors that influenced agricultural entrepreneurship among smallholder urban vegetable farmers in the study areas. The study further investigated the entrepreneurship, market access, and water security nexus in the context of smallholder urban farming using a Structural Equation Modelling (SEM) approach. The results revealed a significant inverse relationship between water security and entrepreneurial engagement, suggesting that higher water security may reduce the motivation for risk-taking and innovation among farmers. Conversely, market access did not have a statistically significant influence on entrepreneurship underscoring the need to explore other factors that might be more critical in driving entrepreneurship. These findings challenge conventional assumptions and highlight the need to consider local barriers beyond resource availability, such as market conditions and institutional support. This study contributes to the understanding of the complex association between entrepreneurship, market access, and water security, highlighting the complex dynamics influencing entrepreneurship in the urban agricultural sector and suggesting policy interventions to address non-resource-related constraints on entrepreneurial growth. The results point to an essential nuance in the Theory of Planned Behaviour (TPB), where resource availability, while facilitating operational aspects, might reduce the perceived necessity for entrepreneurial action. This study recommends that local municipalities should develop urban policies and programs that strengthen market training activities and form farmer co-operatives to meet market requirements and improve market participation among smallholder urban farmers Support institutions must be strengthened immediately because of the impact that institutional elements have on the agricultural production systems smallholder farmers. This might entail setting up strong extension services, offering technical support, and making credit and storage facilities more accessible. Furthermore, the study recommends urban policies and programs that strengthen urban farming activities, market information sources, and entrepreneurship training to improve agricultural entrepreneurship endeavors among smallholder urban farmers. It is suggested that conducting longitudinal studies would be beneficial in tracking how changes in resource availability, such as land, water access, and market conditions, influence entrepreneurial activities over time.