Determinants of the economic profitability of peasant enterprises in rural areas of Borgou, Benin

Abstract

This study of 293 rural farmers in Borgou, aimed primarily at identifying the non-economic and technical factors of the economic profitability of farmers' enterprises, shows that innovation and value creation, and the search for a remunerative market have a positive influence on the economic profitability of farmers. On the other hand, the farmer's attitude to take less risk has a negative influence on his profitability. In other words, the farmers whose enterprises are the most profitable are those who develop the spirit of creativity, search for a remunerative market and take more risks. Individual data collection on socio-demographic variables and the entrepreneurial spirit of rural farmers made it possible to conduct the various statistical analyses that led to these results. These analyses were based on descriptive statistics and the binary probit linear regression model.