Entrepreneurial efforts and performance in micro-sized firms : comparing farm and non-farm firms

The purpose of this study is to investigate the importance of entrepreneurial efforts and various resources to the performance in farm firms and non-farm firms. Even though these firms may operate in different contextual environments they are also likely share many challenges that follows from the liability of smallness. Revitalization and sustained performance of these firms are of great importance both for their own survival and for sustaining economic development in rural communities. The study builds upon theoretical insights from the resource based view (RBV) and the entrepreneurial orientation (EO) perspective. Data of micro- sized firms participating in a regional innovation programme were sampled in 2003 an in 2006. Analyses show that farm firms have a significantly lower score on EO compared to firms in other sectors. A structural difference in factors influencing performance between ordinary micro-sized firms and farm firms were detected. EO, change in EO and financial position were found to have significant influence on a sustained performance in all firms. However change in EO and unique competence seem to have a stronger impact on performance in farm firms compared to non-farm firms.