Abstract:
Despite the fact that there is a significant potential to transform home gardeners into economic home
garden-based entrepreneurs, the tea smallholding sector in Sri Lanka has only a limited number of
such entrepreneurs due to various reasons. This study aims to explore the entrepreneurial readiness,
challenges and potentials for being an economic home garden-based entrepreneur. A cross-sectional
explorative study was conducted. Stratified purposive sampling technique was used to select 50 tea
smallholders who participated and another 50 smallholders who did not participate for the
extension programs, in four Grama Niladhari Divisions in Doluwa Divisional Secretariat in Kandy
District. A field survey administrating pretested structured questionnaire and focus group
discussions were undertaken to collect primary data. The relative severity index was used to identify
the importance of the various challenges faced by them. Potential areas for business startups were
also identified. Both descriptive analysis and multiple regression models were used for data analysis.
Paired t-test which was done between above two groups resulted that there is a significant difference
between them (P<0.05) and also, tea smallholders who participated to the extension programs
showed highest mean value, which confirms that they acquire more entrepreneurial readiness than
the other group. The descriptive analysis revealed that the entrepreneurial readiness of the
economic home garden-based tea smallholders is high (75.42%). Female participation and their
entrepreneurial readiness are higher than that of male. Both female and male farmers with no formal
education have higher entrepreneurial readiness (74%). Multiple regression analysis revealed that
entrepreneurial readiness has a significant positive relationship with motivation related to financial
stability (p < 0.001), entrepreneurial ability of farmers (p < 0.1), their identified opportunities, (p <
0.05) and the number of extension providers who gave frequent technical advices (p < 0.05) whilst
a significant negative relationship is shown with education (p < 0.05) and experience (p < 0.05). The
compost-based products, floriculture, liquid fertilizers, vanilla cultivation, and seed production were
identified as potential areas for small-scale business startups. The major challenges faced by
entrepreneurs were pests and disease attacks, scarcity of skilled labor, shortage of inputs, adverse
effects of climate, and low yields. In conclusion, the economic home gardeners based on tea small
holdings have higher entrepreneurial readiness. Among them, those who have prior participation to
extension programs showed more entrepreneurial readiness. Entrepreneurial readiness of such
holdings could be uplifted by motivating, strengthening their entrepreneurial abilities by conducting
more extension programs and increasing service providers, identifying appropriate and potential
agribusiness and giving them viable solutions for major challenges and limitations. Hence,
policymakers should give due attention on above aspects for the encouragement of tea small holders
to establish economic home garden as an extra income source for improving their lively hood.
