China's Farmers Entrepreneurship In Transition:Behavior, Risk And Incentive

In this study, based on Chongqing, the big city with large countries, farmers in the market economy are regarded as micro-economies which possess the inner impulses of innovative that could convert to behaviors in certain circumstances in pursuit of maximization of their own incomes. This dissertation, on the basis of normative definitions of key concepts such as farmers, entrepreneurs and farmers entrepreneur ship, has utilized entrepreneurial theory, investment theory, labor transfer theory as the main support, and test tools of correlation analysis, regression analysis, factor analysis, the Granger Causality Test, to conduct a systematical study of farmers'entrepreneurial performance, behavior decision-making mechanism, condition for entrepreneurship, influence factors of business performance, venture investment scale, direction and efficiency, business risk identification, evaluation and management, for further understanding their behavior rules in transition period, and for seeking a new path to solve issues of agriculture, countryside and farmer, and for Providing decision-making basis to stimulating farmers to start businesses.Ⅰ. Basic Conclusions1. General Conclusions(1) Farmers entrepreneurship is the source of endogenous growth of rural construction and development. During transition period, it is also of great significance in promoting farmers' income, driving the transfer of rural surplus labor force, enhancing the level of agricultural technology, accelerating the upgrade of industrial structure in rural areas, promoting urban and rural two-way configuration of production factors as well as establishing a fair and reasonable rural social differentiation mechanism.(2) In transition, a lot of new features emerge in the business practice of China's farmers entrepreneurship in the field of primary, secondary and tertiary industries:the entrepreneurial practice of farmers in the agricultural sector can be reflected from "quality" and "quantity", the widespread adoption of new technologies and the use of advanced management constitute the main feature; entrepreneurship in the field of secondary industry is an advanced form of farmers entrepreneurship. After the financial crisis, a large number of migrant workers return home to starting business and create opportunities for the secondary development of rural enterprises; in tertiary industry, farmers' entrepreneurial directions mainly concentrate in rural tourism like relevant accommodation, dining, cultural and entertainment industries, and in the related logistics industry with the circulation of agricultural products, and in general service which is firmly closed to people's daily lives.(3) the occurrence mechanism of farmers' entrepreneurial behaviors in transition period: first, promotion of entrepreneurial motivation, incentive policy and active atmosphere; Then, awareness and gain of entrepreneurial opportunities during the period of structural adjustments of agricultural product, rural industry and regional economy; third, recognition of entrepreneurial opportunities and business valuation based on personal characteristics, social capital and the previous knowledge and experience; finally, investment decisions according to the profitability and feasibility of the venture project.(But farmers' entrepreneurial investment decisions are not entirely rational.)(4) Entrepreneurial risks of farmers entrepreneurship in transition period mainly come from resource risk in early venture investment, Operating risk in middle venture investment and environmental risk throughout the entrepreneurial process. Due to various objective and subjective factors, coupled with low accumulation and limited savings, and shortage of fundamental security system in rural areas after long-term agricultural surplus deprivation, farmer entrepreneurs, compared to other entrepreneurs, are more unwilling to take ventures and are vulnerable encountering risks. (5) the management of farmers' entrepreneurial risk, standing in the "before" and "after" point of view, should be arranged by formal mechanism and informal mechanism in four aspects of the risk aversion, risk control, bearing the loss, the loss of decentralization and transfer.2. Research conclusions of Chongqing farmers'entrepreneurship(1) Chongqing farmers entrepreneurship shows the following characteristics:First, the entrepreneurial environment is generally good; second, the overall ability and quality of the entrepreneurial farmers are still in the middle or low-levels; third, survival type of entrepreneurship plays a predominant role while non-survival of start-ups began to appear; fourth, demonstration effect is significant while farmers have strong dependence on resources and policies and individual part-time business is widespread; fifth, On-site relying on family business with a lower level of organization; sixth, regional development of farmers'entrepreneurial is imbalanced.(2) analysis of factors affecting farmers'entrepreneurial performance in Chongqing shows:the distance between the family and the market town, the number of family male labor force, the highest educational levels of the family members, relatives and friends living in urban regions, the family's ability to innovate, ability to cooperate and tenacity have significant positive effects to farmers entrepreneurship; family members as village cadres and migrant workers exert a significant negative effect; traffic conditions, the number of family labors, education level of the head of household, participation in professional cooperatives and business organizations and in training, for farmers entrepreneurial performance, have no significant influences.(3) The scale and level of farmers'entrepreneurship investment in Chongqing are generally not high. There exist gap in individual ability to invest. Breeding households invest in large-scale while the grain vegetable growers invest in minimum scale; the scale of investment of the households engaged in industrial or commercial operation is generally higher than that of the breeding households and the grain vegetable growers.(4) For the directions of Chongqing farmers'entrepreneurship investment, farmers of breeding and growing industries mainly invest in growing industry. The per capita incomes of farmers of the four entrepreneurial directions differ significantly, especially grain, vegetable growers obtain a minimum level; most of entrepreneurships in secondary industry come from industrial and business units engaged in construction industry; entrepreneurial businesses in the area of tertiary industry are mostly in various wholesale and retail of goods. But some new industries, or professions and technics required industries, such as decorative design, photography, advertising have already begun to sprout in farmers'selections of entrepreneurial directions.(5) investigation of the investment efficiency of big farming households demonstrate: the scale returns are not significant and the efficiency of investment has not been optimized with the increase of the planting area; Comparative benefits are of low efficiency. Subsidizing income is the key factor to mobilize the enthusiasm of major producers of grain.Ⅱ. Policy suggestions of the studyTo construct farmers' entrepreneurial incentives, basic principles below should be followed:First, convert from supply-driven to demand-led entrepreneur ship; second, play the dual role of the government and the market; third, take into account of both "exogenous incentive" and "endogenous incentive".1. Strengthen farmers' entrepreneurial education and training, and alter their perceptions and ideas, improve their level of entrepreneurial ability. First, promote the entrepreneurial culture and create a favorable business atmosphere; the second is to strengthen entrepreneurship training targeted to improve farmers' resource endowment structure; third is to guide the various social institutions to participate in entrepreneurship training of farmers. It can also rely on the existing rural communities' organizations to set up farmers' entrepreneurship training center.2. Activate the rural financial factor markets and resolve the farmers'entrepreneurial capital bottleneck. First, deepen rural financial system reform and reconstruct the formal financial markets in rural areas; second is to reduce the threshold of the rural financial and credit organizations, and to regulate the private capital markets in rural areas; third, create convenient, fast financial product and service which suit farmers' entrepreneurial characteristics.3. Bring land for farmers' entrepreneurship into urban and rural development and land planning. Define farmers' land property rights. First, step by step according to their own situations to address the non-ruralized demand of farmers entrepreneurship land; second is to encourage and support all sorts of subcontracts, transfers, exchanges and other forms of land transfer behaviors among farmers; The third is to allow farmers to make full use of idle land, leftover land in small towns and villages, stock collective construction land, homestead, rental housing for other entrepreneurships.4. Improve the service system of entrepreneurship and create a relaxed, good external environment for entrepreneurial farmers. First, relax the farmers' entrepreneurial sector and geographical restrictions, and allow the farmers to participate in a variety of business activities with equal market players'identities; second, timely release investment business information and help farmers to select and evaluate venture projects; third, speed up the circulation system in small towns and rural market and achieve, as soon as possible, the equalization of supply of urban and rural infrastructure; fourth, regulate the government behavior, enhance service awareness, and improve work efficiency.5. Establish a complete farmers 'entrepreneurial security system to reduce farmers' entrepreneurial risks and increase their risk-tolerance. First, gradually unify policies of pension, health care, education, maternity, unemployment, work injury, etc. in both urban and rural residents to eliminating the worry for entrepreneurial farmers; second, continue to explore the policy-oriented agricultural insurance system, to give policy support to all aspects of underwriting, claims and other links; third, encourage entrepreneurial farmers to explore joint cooperation of land, capital, technology and other forms of business models; fourth, encourage a variety of NGOs to set funds to help farmers as soon as possible to re-start the failed business ventures.III. The main innovations1. The innovation in theory:Seize the essence of entrepreneurship——innovation. Bring farmers into the entrepreneurship category of analysis. Define farmers' entrepreneurship with farmers as the main body and establish the basic framework of farmers' entrepreneurial analysis.2. The innovation in practice:Targeted analysis of farmers' entrepreneurial behaviors, based on the economies in transition, from the microscopic, empirical points of views and research of the scale of investment, orientation and efficiency of the farmers' entrepreneurship and establishment of an index system to identify the farmers' entrepreneurial risks.3. The innovation in method. Use factor analysis to study farmers' entrepreneurial capacity and utilize binary logistic model to analyze the factors affecting farmers' entrepreneurial performances. The AHP Analytic Hierarchy Process is used to evaluate farmers' entrepreneurial risk, etc.