Factors determining dairy entrepreneurial readiness among rural youth in Karnataka state: An empirical analysis

Abstract

The growing recognition of dairy entrepreneurship as a viable livelihood strategy for rural youth has prompted critical inquiry into the determinants that shape their readiness to undertake entrepreneurial ventures in the dairying sector. This study investigated the multidimensional factors influencing entrepreneurial readiness among rural youth to be engaged in or aspiring toward dairy entrepreneurship in Karnataka. The research is grounded on sustainable livelihood framework and human capital theory, focusing on four core domains: individual characteristics, institutional and policy support, entrepreneurial traits, and socio-economic factors. A multistage random sampling method was employed to select 270 rural youth respondents from prominent dairying districts. Primary data were collected using a structured interview schedule and analyzed using Exploratory Factor Analysis (EFA) and multiple linear regression to identify the underlying constructs and their predictive influence on entrepreneurial readiness. EFA revealed a robust four-factor model explaining 52.37% of the total variance, encompassing 17 retained variables. Subsequent regression analysis indicated that all the four extracted factors significantly influenced the entrepreneurial readiness, with individual characteristics (β = 0.412) and institutional/policy support (β = 0.388) emerging as the most influential predictors, followed by entrepreneurial traits (β = 0.292) and socio-economic factors (β = 0.259). These findings underscored the need for a comprehensive approach for entrepreneurship development that integrates personal capacity building with institutional enablement.