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The agri-food system plays a vital role in the socioeconomic well-being of the USA. For example, it comprises
4.8% of US gross domestic product (GDP) and nearly
10% of all jobs, while 15% of all household expenditures are on food (USDA Economic Research Service,
2014). In rural Vermont, the setting for this study, the
contributions are even larger. The total contribution of
agri-food to the states economy is estimated at US$2.7
billion (Vermont Sustainable Jobs Fund, 2011), about
12% of state GDP (US Department of Commerce,
2012), and the agri-food system provides 57,089 jobs
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(Vermont Sustainable Jobs Fund, 2011). The importance of fostering entrepreneurs is reinforced by the
role of small businesses in the US economy. Small
businesses make up more than 99% of all private US
firms, provide almost half of all employment and
almost two-thirds of new employment (Small Business
Administration, 2012). Numerous studies over the
years have also confirmed the importance of small and
medium-scale entrepreneurial businesses to community
social and economic well-being (Goldschmidt, 1947;
Lyson, 2004).
Despite the agri-food systems potential contributions to social-economic well-being and provision of
ecosystem services, it is important to note many
scholars concerns about grave damage to ecosystems,
communities and public health through a broad array
of means, including (but not limited to) pollution,
biodiversity loss, unfair labour practices, antibiotic
resistance and illegal activities (Lymbery, 2014; Smith
and McElwee, 2013; Tegtmeier and Duffy, 2004;
Zhang et al, 2007). The sustainable or alternative
agriculture and sustainable community-based food
system paradigms are widely seen as mitigating the
damage and accentuating positive contributions (Beus
and Dunlap, 1990; Conner and Levine, 2007; Feenstra,
2002). The University of Vermont, like many higher
education institutions, actively promulgates sustainable
agriculture and food systems through its education,
research and outreach efforts, including its sustainable
farming training programme, its food systems, minor
and graduate programmes and transdisciplinary research initiative. Commitment to sustainable
community development is also embedded in Vermonts Farm to Plate food systems strategic plan. A
firm must be profitable for it to continue to contribute
to sustainability outcomes: hence the focus of this
paper on entrepreneurial skills needed for business
success. Agri-food firms specific contributions to
community development and sustainability are the
subject of another paper (Conner et al, under review)
within this project and beyond the scope of this paper.
The community economic development potential of
fostering successful food entrepreneurs suggests a role
for higher education to educate the next generation of
entrepreneurs. This study explores gaps in entrepreneurial knowledge and skills, along with strategies for
effectively delivering them to prospective entrepreneurs.
Building on previous studies (Conner et al, under
review, and 2014), it uses a survey of agri-food entrepreneurs in Vermont to understand what knowledge and
skills they need most in their businesses, and how and
where they learned these skills. Implications will focus
on strategies to improve entrepreneurship education in
agricultural colleges and universities.
Literature review
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209
Methodological considerations
This paper reports on results of an online survey of agrifood entrepreneurs in Vermont. It builds on two
previous studies within the same project which utilized
(i) interviews of agri-goods entrepreneurs (Conner et al,
under review) and (ii) university instructors of entrepreneurship and recent graduates interested in starting a
business (Conner et al, 2014). These studies were highly
idiographic, utilizing qualitative methods to gain depth
of understanding of our subjects experiences in entrepreneurship education and practice. For this paper, we
chose to supplement these findings with a more nomothetic account which measures the preponderance of and
relationships among variables developed through
analysis of key themes of the aforementioned interviews
in a larger and broader sample.
Methods
The online survey was designed to explore the knowledge and skills needed to foster agri-food entrepreneurs
in Vermont and how this information should be taught.
The University of Vermonts Institutional Review Board
approved the research protocol. The survey questions
were based on the findings of 20 qualitative interviews
of Vermont agri-food entrepreneurs conducted in the
autumn of 2012 (Archer, 2013). The list of skills was
gathered from previous studies and the qualitative
interviews of the Vermont agri-food entrepreneurs. The
survey was designed to obtain information about
important skills and knowledge to run a business, where
these skills were learned, and knowledge the resources
and format they use for continuing educational needs
as well as firmographic and demographic characteristics.
The survey was piloted by three agri-food entrepreneurs
and revised accordingly.
The unit of analysis was the individual entrepreneur.
The survey sample frame was agri-food entrepreneurs in
Vermont, and included any business in the agri-food
supply chain. For example, there were: input suppliers,
farmers/ranchers, processors, food manufacturers,
distributors, wholesalers or retailers. We estimate that
this represents about 12,000 businesses. A list of 25
related professional organizations, service providers and
government organizations was created to deliver the
survey to the sample frame. The survey was uploaded
on an online survey platform, and e-mails containing a
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Results
Survey respondent characteristics
Summary demographic and firmographic statistics are
presented in Table 1. The sample is highly educated, as
57.5% of the respondents hold a Bachelors degree and
25.0% hold a Graduate degree. Respondents were on
average 48.7 years old and the sample was gender-split
(52.6 male and 47.4% female). Majors in college were
reported in an open-ended question. Out of the 33
respondents who reported a major, 18.2% had a degree
related to business, entrepreneurship or economics.
Other majors included engineering, environmental
studies, agriculture, geography, anthropology and
education.
In terms of firm characteristics, 85.4% had started the
business, and respondents had been operating the
business for an average of 14.8 years. The size of the
operations tended to be small, with 87% of respondents
running an operation which had a 2012 gross revenue
under $500,000. More entrepreneurs reported being in a
phase of growth (48.7%) and fewer reported being in a
start-up phase (25.6%). Overall, 51.2% of respondents
desired their business to be somewhat bigger and 26.8%
desired it to be much bigger. Products produced by the
businesses included: fruits and vegetables, meat, cheese,
maple syrup, mustard, bread and caramels.
Where did agri-food entrepreneurs learn the skills they
have?
Entrepreneurs were asked where they had learned the
skills needed to run an operation (Table 2). Entrepreneurs possessed most of the identified skills. Three skills
were reported as being the most intuitively learned
skills: aligning values and passions to business opportunities (32.5%), oral communication (29.3%) and
innovation (23.1%). Entrepreneurs reported that they
just know it as the manner in which these skills were
learned. Three skills were most often reported as never
learned this. These were: risk management (15.4%),
supply chain management (13.5%) and bookkeeping
(11.6%). Two skills were possessed by the entire
sample: aligning values and passions to business
opportunities, and marketing.
Sample mean/proportion
Gender (n = 40):
Female
Male
Education (n = 40):
No high school diploma
High school diploma
Some college
Bachelors degree
Graduate degree
Age (n = 39)
Number of employees (n = 41)
Number of years in business (n = 41)
Ownership of business (n = 41):
Started the business
Purchased the business
Inherited the business
Dont own the business
2012 gross revenue:
Less than $100,000
$101,000 to $250,000
$250,001 to $500,000
$500,001 to $750,000
$750,001 to $1 million
More than $1 million, less than $5 million
Standard deviation
47.4
52.6
2.5
15.0
57.5
25.0
48.7
4.3
14.8
12.8
7.3
20.9
85.4
7.3
4.9
2.4
59.0
10.3
17.9
7.7
0.0
2.6
2.6
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212
Risk management
Supply chain management
Bookkeeping
Human resources management
Managing life stages of the business
Promotion
Market development
Written communication
Finance
Receiving and acting on
customer feedback
Innovation
Operations
Product development
Pricing
Legal (food safety, tax law)
Oral communication
Business plan writing
Computer skills
Aligning values and passions
to business opportunities
Marketing
5.1
0.0
14.0
0.0
0.0
0.0
2.6
2.5
7.5
0.0
2.6
2.4
4.8
7.0
9.3
4.9
24.4
9.3
10.0
7.1
2.6
0.0
2.4
0.0
4.7
22.0
4.9
20.9
0.0
0.0
Non-formal
education
(outreach)
setting
7.7
5.4
7.0
2.6
5.3
2.4
2.6
42.5
10.0
4.4
Formal
education
(classroom)
setting
47.6
43.6
43.9
50.0
51.2
46.5
19.5
22.0
23.3
40.0
33.3
48.6
37.2
39.5
50.0
46.3
55.3
15.0
42.5
51.1
I learned it
through the
experience of
operating my
business
11.9
12.8
19.5
4.8
11.6
2.3
14.6
12.2
23.3
5.0
12.8
10.8
7.0
28.9
10.5
12.2
10.5
7.5
10.0
17.8
Through
another job
Table 2. Venues for acquiring knowledge and skills for running a business (%) (n = 47).
9.5
0.0
9.8
11.9
9.3
16.3
0.0
22.0
7.0
7.5
7.7
2.7
11.6
0.0
5.3
7.3
2.6
10.0
7.5
2.2
Through
secondary
sources
books,
online, etc
9.5
10.3
14.6
14.3
11.6
14.0
7.3
7.3
4.7
5.0
12.8
10.8
9.3
10.5
13.2
14.6
13.2
7.5
10.0
4.4
I learned it in
collaboration
with stakeholders
14.3
23.1
4.9
7.1
4.7
2.3
29.3
4.9
9.3
32.5
5.1
8.1
2.3
7.9
5.3
7.3
5.3
7.5
5.0
13.3
Just knew it
0.0
5.1
4.9
4.8
4.7
4.7
2.4
2.4
2.3
0.0
15.4
13.5
11.6
10.5
10.5
9.8
7.9
7.5
7.5
6.7
I never
learned this
Neutral
Not important
97.9
91.5
91.1
89.4
89.4
87.2
87.2
87.0
85.1
84.8
82.6
80.0
78.7
78.7
78.3
76.1
73.3
67.4
67.4
63.6
2.1
8.5
8.9
6.4
10.6
10.6
10.6
13.0
8.5
13.0
13.0
20.0
14.9
12.8
19.6
19.6
22.2
23.9
17.4
29.5
0.0
0.0
0.0
4.3
0.0
2.1
2.1
0.0
6.4
2.2
4.3
0.0
6.4
8.5
2.2
4.3
4.4
8.7
15.2
6.8
Bookkeeping
Receiving and acting on customer feedback
Operations
Legal (food safety, tax law)
Marketing
Market development
Product development
Pricing
Computer skills
Oral communication
Finance
Innovation
Promotion
Written communication
Managing life stages of the business
Risk management
Aligning values and passions to business opportunities
Business plan writing
Human resources management
Supply chain management
Table 4. Knowledge and skill sets found to be the most important to be taught in a formal classroom setting (%) (n = 47).
Knowledge and skills
more important to be
taught in formal
classroom setting
Respondents who
learned skills in
classroom
Respondents who
learned skills in an
outreach setting
31.9
29.8
27.7
27.7
23.4
23.4
14.9
14.9
10.6
10.6
10.6
8.5
6.4
6.4
4.3
4.3
4.3
2.1
2.1
0.0
4.7
4.9
7.0
10.0
20.9
0.0
2.4
7.7
0.0
5.3
2.6
0.0
2.6
22.0
2.4
4.4
42.5
0.0
5.4
2.6
9.3
24.4
14.0
7.5
9.3
7.1
4.8
5.1
10.0
0.0
2.6
7.0
0.0
4.9
0.0
0.0
2.5
2.4
0.0
2.6
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skills might not be the best suited skills for the formal
education set-up.
As other scholars have found before us, informal
education is key for the development of knowledge
and skills for entrepreneurs. Previous work experience,
learning from others and learning by doing were the
most frequent sources of informal learning in our study
as well as in others (Gabrielsson and Politis, 2012;
Shane and Venkataraman, 2000; Lans et al, 2004). Our
findings suggest the importance of having many types
of skills, from explicit to co-created, confirming the
jack-of-all-trades approach (Lazear, 2005). Our study
also found that entrepreneurs were able to source their
toolkit of skills from many different venues, showing
that entrepreneurs are also entrepreneurial in their
approach to learning. One important finding is that
formal education does not play a key role. This could
be because educational programmes focus more on
general business functions and less on entrepreneurial
skills (Morris et al, 2013). Finally, we arrived at
similar conclusions to Phelan and Sharpley (2012),
who had found that the skills the farmers valued as
important were the skills in which they had least
confidence: managing finances and marketing. In our
study we found that the skills entrepreneurs ranked as
being important to learn in a formal education setting
had not been learned there.
These findings suggest important implications for
the development of skills for entrepreneurs and people
who might want to become entrepreneurs. Majors at
the university level and in trade schools where people
are likely to start an agri-food business such as agriculture and food sciences should include the explicit skills
and knowledge deemed necessary by the entrepreneurs
to run a business; while not the most crucial, they are
nevertheless important for the survival of the business.
These skills and knowledge are: legal (food safety and
tax law), business plan writing, bookkeeping and
finance. Even though there has been a lot of interest in
teaching entrepreneurship at the university level for
entrepreneurs, this is not where they are learning the
necessary skills. We find yet again the importance of
informal learning through previous jobs, networks and
operating the business. The role of the institution of
higher learning is then to continue providing the
building blocks that can be used by any students
whether they start a business or not; these include
critical thinking, knowing how to identify resources
and how to use them, and the importance of networks
and how to connect with them. This means that service
providers such as extension workers have a key role to
play as they can work with the entrepreneurs to
strengthen the skills and knowledge that they feel they
lack.
Conclusion
214
Acknowledgments
The authors acknowledge funding and support from the
USDA National Agency and Food and Agriculture,
Agriculture and Food Research Initiative, Project
Number 2011-68006-30799.
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