Assessment of entrepreneurial risk and water quality in urban agriculture.
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Date
2022
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Abstract
Urban agriculture (UA) serves diverse purposes in various societies. However, there are many
difficulties that urban farmers must overcome in UA, as it is a risky industry like any other
sector. The limited availability of natural resources such as land and water, present production
risk for the farmers as they are subjected to production on small areas of land available. The
practice of agricultural production further depletes the water supplies that are accessible.
Urbanization is predicted to lead to a decline in water quantity and quality because agriculture
uses a big portion of the water supply and population increase. Measures, such as water
resource management, drip irrigation, and wastewater re-use, are taken to manage the
deterioration of water quality, as they affect how money and decisions are made. Factors such
as production, pricing (market), and human, financial, and institutional risk are all risk concerns
for farmers as they affect their "entrepreneurial spirit" and willingness to take on any risk. Over
the years, research has addressed risk variables that influence smallholder and commercial
farmers in rural regions; however, there has been little research on the risk factors that affect
entrepreneurship in UA. Furthermore, the presence of risk in agriculture also presents food and
nutrition insecurity as farmers tend to be risk averse.
The study aimed to evaluate the risk factors on decisions making by urban farmers and the
effects on income generation, while also reviewing the literature on the water policies on
access, use and quality, and the farmer’s perception of the use of WW in UA and the role of
UA in food and nutrition security. The study’s methodology was a mixed-method approach,
employing both qualitative and quantitative data collection and data analysis methods. A
multistage sampling technique was used to randomly select 78 urban households. The sample
included 48 urban farmers and 30 non-urban respondents who were purposefully selected to be
part of the study. The selection was complimented through a structured questionnaire survey
complemented by observations and focus group discussions. For data analysis of the qualitative
and quantitative results, the study made use of a thematic and content analysis of the policies;
the study also employed Principal Component Analysis (PCA) and logistic regression analysis
of the results. This study employed a review of literature on the policies in place that govern
water access, use and quality in South Africa.
The socio-demographic results from the study show that the respondents were mostly females;
with the mean age of 58, and only a few of the respondents were classified as youth between
the ages 18-40. The findings revealed that there are policies in place that govern water access
and use, and quality. However, the findings show that there are no policies that are specific to
water access, use and quality in urban agriculture. Moreover, it was found that there are
guidelines relating to water quality as urban farmers have been found to use WW due to the
water shortages in cities. To cover the shortfall, the farmers, use other sources of water such as
rainwater, river, dam and wastewater. The results on farmer perception revealed that the
majority of the farmers were not open to using WW even though they were aware of its use in
agriculture. The findings further revealed that the respondents are somewhat aware of the risk
factors in UA and how they impact their income generating capacity. It was found that factors
such as age, education, water quality, entrepreneurial risk factors like (production risk and price
risk) and psychological capital, were found to be statistically significant and have the potential
to influence the risk factors of the respondents and subsequently increase urban agriculture
participation ultimately leading to increased incomes. The study results also show that majority
of the respondents were farming to ensure food and nutrition security at a household level due
to food and economic hardships, while only a few of the participants were farming to sell at
the market. Even with those who were selling at the market, they found that the costs
outweighed the benefits and were somewhat not motivated.
The study, therefore, concluded that farmers need more information on the safe use of WW in
agriculture. There is also a need for the farmers to develop their risk awareness in UA, and how
to better manage the risk. Enhanced risk management strategies will ensure continued income
generation and also invoke the “entrepreneurial spirit” necessary to become a successful
entrepreneur. The study further concludes that youth involvement in UA is essential as the
majority of the participants were elderly, who are mostly subsistent farmers, while young
farmers weren’t motivated enough to go into agriculture.
Key words: urban agriculture, entrepreneurial risk, water polices, water quality, food
security, principal component analysis, entrepreneurship, logit regression.
Description
Masters Degree. University of KwaZulu-Natal, Pietermaritzburg.