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Determinants of Rural Industrial Entrepreneurship of Farmers in West Bengal: A Structural Equations Approach

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This article presents a structural equations model of rural industrial entrepreneurship (RIE) among farmers in the Bardhaman district, West Bengal, India. It identifies the determinants of RIE but also analyzes impacts of RIE on its endogenous determinants. Age, education, marital status, number of children, number of crops, financial family support, innovativeness, wealth, and occupational status are identified as the main determinants of RIE. On the basis of these findings, promotion, education, and training programs are suggested as important policy handles to encourage and support farmers to start a rural industrial enterprise. Moreover, the development of properly functioning capital markets in rural areas is recommended. This policy instrument may not only stimulate rural industrialization but may also be instrumental in controlling the development of inefficient rural industrial activities.

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