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Collective Entrepreneurship and Rural Development: Comparing Two Types of Producers’ Organizations in the Ethiopian Honey Sector

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Network Governance

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

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Abstract

This paper deals with the comparison of two types of honey producers’ enterprises in the Masha district, western Ethiopia. Cooperatives and private limited companies (PLCs) are both collectively owned by a group of farmers, but the former do not face a legal restriction regarding the number of members, are strongly regulated by the government, and their shares are not tradable. We argue that the collective entrepreneurial capacity varies significantly among the two types of organizations. We found that members of PLCs have higher productivity and income derived from honey, are more prone to adopt new technologies, as well as receive higher dividends and price per kilo of honey. Additionally, the incentive scheme exercised by the PLCs was more market oriented. Furthermore, as compared to cooperatives, PLC members market a higher proportion of honey through their organizations. These results are relevant for the design of development interventions aiming at enhancement of market integration of small farmers in Ethiopia.

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Notes

  1. 1.

    A kebele is defined in Ethiopia as the smallest administrative unit, below the municipality-district level.

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Authors and Affiliations

  1. Centre for International Development Issues Nijmegen, Radboud University Nijmegen, Thomas van Aquinostraat 4, 6525, Nijmegen, The Netherlands

    Clarietta Chagwiza, Roldan Muradian & Ruerd Ruben

  2. Department of Agricultural Economics, Hawassa University, 05, Awassa, Ethiopia

    Worku Tessema

Authors
  1. Clarietta Chagwiza
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  2. Roldan Muradian
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  3. Ruerd Ruben
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  4. Worku Tessema
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Corresponding author

Correspondence to Clarietta Chagwiza .

Editor information

Editors and Affiliations

  1. , Institut für Strategisches Management, Universität Münster, Leonardo-Campus 18, Münster, 48149, Germany

    Thomas Ehrmann

  2. , Department of Management, University of Vienna, Brünner Str. 72, Wien, 1210, Austria

    Josef Windsperger

  3. , Institute of Management of Rennes (IAE), Université de Rennes 1, rue Jean Macé 11, Rennes Cédex 7, 35708, France

    Gérard Cliquet

  4. , Rotterdam School of Management, Erasmus University Rotterdam, Burgemeester Oudlaan 50, Rotterdam, 3062 PA, Netherlands

    George Hendrikse

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Chagwiza, C., Muradian, R., Ruben, R., Tessema, W. (2013). Collective Entrepreneurship and Rural Development: Comparing Two Types of Producers’ Organizations in the Ethiopian Honey Sector. In: Ehrmann, T., Windsperger, J., Cliquet, G., Hendrikse, G. (eds) Network Governance. Contributions to Management Science. Physica, Berlin, Heidelberg. https://doi.org/10.1007/978-3-7908-2867-2_9

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