Farmers' markets as small business incubators and safety nets: Evidence from New Zealand

Abstract

Purpose

The paper seeks to explore the importance of a sample of New Zealand farmers' markets in providing a supportive setting for the take‐off as well as the decline stage of the small business life cycle, with a view to identifying factors that may enhance rural small business survivability.

Design/methodology/approach

The task was achieved by use of a combination of interviews and case studies. A list of new generation farmers' markets was compiled. Managers from four of these markets were interviewed to identify the possible existence of businesses that had been fostered by, but had now outgrown, the market. Four incubated businesses were selected from one of the longer established markets. From a more recently established market, 18 stallholders were selected for examination of their attitudes towards the market as a nurturing environment in relation to the life‐cycle stage of the business. Data were analysed using qualitative techniques of theme identification and analysis.

Findings

It was found that farmers' markets can have a role as small business incubators and safety nets, thus enhancing the survival chances of rural small businesses. This may be particularly useful where dwindling government subsidies and growing supermarket power result in declining incomes and reduced outlets for small‐scale farmers and rural producers.

Research limitations/implications

The research findings are limited by the non‐random nature of the sampling procedure. In such an exploratory study, the main emphasis was on establishing the existence of the incubator and safety net functions. Further research is needed to establish the extent of these roles.

Originality/value

The research investigates a relatively unique setting of an unsubsidised agricultural sector.

Citation

Cameron, A. (2007), "Farmers' markets as small business incubators and safety nets: Evidence from New Zealand", International Journal of Entrepreneurial Behavior & Research, Vol. 13 No. 6, pp. 367-379. https://doi.org/10.1108/13552550710829179