Farmers use credit from commercial credit providers to finance production activities. Commercial credit providers have to predict the financial sustainability of the enterprise to ensure that the borrower will have the ability to repay the loan. A Delphi study was conducted to explore what factors are used as indicators of loan-repayment ability of farmers. The objective was not only to identify factors that are currently considered, but also to identify other personal attributes that may improve the accuracy in predicting the repayment ability of potential borrowers. The Delphi was applied to a panel consisting of nine credit analysts and credit managers from a commercial credit provider in South Africa. The results indicate that the current and past financial performance, account standing, collateral, and credit record of the farm are very important in the assessment of applications in terms of financial performance. Experience and the success factors compared to competitors were found to be important, while age and education/qualification are regarded as less important in predicting repayment ability. The results also show that, although not currently objectively included in credit evaluations, credit analysis regards leadership and human relations; commitment and confidence; internal locus of control; self-efficacy; calculated risk taking; need for achievement; and opportunity seeking as important indicators of the ability of potential borrows to repay their loans. Thus, credit analysts and managers also regard management abilities and entrepreneurial characteristics of potential borrowers to be good indicators of repayment ability. Results from this research provide new indicator factors that can be used to extend existing credit evaluation instruments in order to more accurately predict repayment ability.

Aim:The main objective of this study was to explore the relationship between the entrepreneurial competencies of farmers and their financial performance. Setting: The study was conducted in South Africa among farmer clients of a commercial financial organisation.Methods: The financial performance of the farmers was calculated by means of financial ratios which were used to compile a single performance indicator: operating efficiency. The operating efficiency indicator was calculated using a financial-based data envelopment analysis. An entrepreneurial competencies instrument was used to measure the entrepreneurial competencies of the farmers. Ordinary least squares regression was used within the principal component regression framework to explore the relationship between entrepreneurial competencies and financial performance.Results: The results indicate there is a positive relationship between entrepreneurial competencies and financial performance of farmers. Each of the individual competencies also indicated positive correlation between the entrepreneurial competencies and financial performance.Conclusion: An increase in specific entrepreneurial competencies behaviour may increase the operating efficiency of the farm. Educational opportunities exist to educate farmers on the potential benefits of using entrepreneurial behaviour to their advantage (to benefit their operating efficiency). Sectors involved with agriculture, for example agricultural advisors, financial advisors and educational institutes, should emphasise the importance of utilising the competencies of farmers.

Agriculture is considered as a leading source of employment while ensuring food security to the world and especially rural communities. However, the youth do not appear to be interested in the agricultural sector due to various reasons such as their perceptions and aspirations towards the sector. This research intends to explore whether perceptions, aspirations and access to resources affect youth participation in agriculture and related economic activities, under rain-fed production in two regions of the Free State province of South Africa. Principal component analysis was used to determine perception dimensions, while a probit model was used to investigate the effect of capital (human, social, physical, financial and natural), the perception dimensions and the respondents’ agricultural aspirations on agricultural participation. The results showed that the aspirations of youth do not affect their decision to participate in the agricultural sector. However, exposure to agriculture and support systems can increase youth participation in the industry. Results also show that grants, which are an easy source of income, and the uneducated and comfort perception dimension hinders youth participation in agriculture.

Youth participation in the agricultural sector remains key to addressing youth unemployment. Young people represent a heterogeneous social group with markedly diverse social and economic needs that require tailor-made support interventions to enhance their participation in agricultural activities. The main objective of this article was to develop distinct youth typologies informed by diverse endowment of livelihood assets, including the psychological assets and entrepreneurial characteristics that shape young people’s career and livelihood choices, including participation in agriculture. A two-stage multivariate analytical approach was applied using principal component analysis (PCA) and cluster analysis (CA) to formulate youth typologies. Seven clusters were identified. The seven distinct clusters representing youth typologies were named “Training beneficiaries with access to extension”, “Job secure”, “Females endowed with negative psychological capital”, “Opportunist and determined livestock farmers”, “Social grant reliant”, “Resource poor traditional livestock farmers” and “Non-farming income with access to credit”. The results confirm that young people are indeed a heterogeneous group with diverse support needs. Unpacking the interrelated and multidimensional complexities among the youth is a vital take-off point to inform effective policy and tailor-made support interventions and effectively foster active youth participation in agriculture and related activities. We argue that support initiatives should not only address access to physical resources, but should also foster the development of soft skills such as entrepreneurial skills and boosting the psychological capital of young people while addressing gender inequalities.

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