Research On The Influencing Factors Of Business Model Selection Of Agricultural Venture Capital Enterprises

Venture capital can promote human capital and social capital to enter the agricultural and rural areas and play an important role in promoting the process of agricultural modernization.Agricultural venture capital enterprises,which means the agricultural enterprises that have obtained venture capital,are complex systems with vitality.Their business model choices are driven by internal factors(e.g.corporate founder characteristics)and external factors(e.g.investment institutions).At present,most of agricultural venture capital enterprises choose to serve urban residents,which not only fails to bring benefits to farmers,but also causes the loss of rural labor and capital.Therefore,clarifying and verifying the influence of internal and external factors on the choice of business model of agricultural venture capital enterprises is conducive to promoting more human capital and social capital to enter the agricultural and rural areas.It has immeasurable commercial value for the sustainable development of agricultural venture-oriented enterprises.In addition,it is of great significance for solving the problem of insufficient capital in the process of agricultural modernization and realizing the revitalization of rural talents.To identify and judge the effects of these two factors to the business model choices is benefit to promoting the venture capital service to the village,agriculture and farmers directly.Additionally,this research also has commercial value for the sustainable development of agricultural venture capital enterprises and a high policy value for promoting the integration of rural industries and promoting the process of agricultural modernization.Based on the perspectives of the founders and investment institutions,this paper systematically reviews the relevant research results in China and at abroad.And the materials and data of 275 agricultural venture capital enterprises in China from 2010 to 2017 were used to analyze the characteristics business model of agricultural venture capital enterprises,founders of enterprises and investment institutions;and then Logit and OLS regression models were used to empirically analyze the influence of founder characteristics and investment institution characteristics on the business model choice of agricultural venture capital enterprises.The main conclusions are as follows:(1)The number of venture capital projects in China's agricultural sector fluctuated greatly,but the scale of investment showed a steady growth trend,and the regional distribution was uneven.The number and average investment size of �2F� business models in agricultural venture capital enterprises is less than �2CI� business models(offering services and products to the citizens).(2)From the internal founder characteristics,the founders with higher education level are more inclined to choose the �2F� business model.There is a significant relevance between the founders with the agricultural professional education and the �2F� business model of the enterprise.But the founders who have experienced entrepreneurial failures are reluctant to choose the �2F� business model;(3)From the perspective of the characteristics of external investment institutions,investment institutions involving foreign capital tend to choose the �2CI� business model,and investment institutions are more likely to choose joint investment method when they invest in �2F� enterprises due to taking into account many factors such as risks and resources.Based on the above conclusions,the corresponding enlightenment from the two perspectives of the founder and the investment institution is as follows: Firstly,improving the education level of the founders of agricultural enterprises and enhancing the management decision-making ability of the founders,and promoting the development of leading agricultural enterprises is important.Secondly,Encouraging the founders of agricultural enterprises to learn courses related to agricultural production,and enhancing the awareness of founders in serving agriculture should be done.Next,the social fault tolerance mechanisms should be established to stimulate the participation agricultural enthusiasms of founders.Finally,foreign capital should be attracted to invest in �2F� agricultural enterprises in order to meet the production and living needs of rural consumers;and investment institutions should be guided to pay attention to the agricultural sector and emphasis the great importance of joint investment.