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Purpose

The purpose of this paper is to investigate how farmers perceive and exploit business opportunities to foster entrepreneurship in developing country agriculture.

Design/methodology/approach

In total, 174 milk producers completed a face-to-face survey within a posttest- pretest research design. Partial least squares structural equation modelling (PLS-SEM) was used to test the hypotheses.

Findings

Results revealed that intentions, channelled through desirability, feasibility and optimism, become a strong predictor to recognise the opportunity to be entrepreneurial; however, the presence of a munificent environment and participation in apprenticeship and training programmes are the main and direct source of exploiting farming business opportunities.

Research limitations/implications

The major limitation of the study is that cross-sectional data collected only from milk producers in Pakistan, signifying a need to include other agricultural sectors across different developing countries for further contextualising the results.

Originality/value

Research on entrepreneurial behaviour among farmers is scant. This study emphasises how cognitive heuristics guide intentions influencing the process of opportunity formation, and a munificent environment and entrepreneurial skills trainings are necessary for starting dairy farming business with modern practices.

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