The relationship between entrepreneurial orientation and farmers' satisfaction with business performance: Insights from Swedish agriculture

This study investigates the relationship between entrepreneurial orientation (EO) and farmers' satisfaction with business performance, considering the moderating effects of diversification strategies and environmental hostility. We regard farmers' satisfaction as a multidimensional concept encompassing economic and non-economic aspects, measured by financial performance, income, leisure time, and employment provision. Using survey data from 248 farm businesses in Sweden, the empirical analysis suggests that EO positively relates to farmers' satisfaction in terms of income, while a negative relationship is observed with leisure time. Neither diversification nor environmental hostility separately moderates the relationship, but their combination has a significant influence. Specifically, under low environmental hostility and participation in diversification, EO strengthens satisfaction with financial performance, income, and employment. Policymakers can use these findings to allocate public spending toward fostering entrepreneurship in agriculture through targeted educational and training programs for farmers and successors.