Successful Factors of Agricultural Entrepreneurship in Malaysia

Successful Factors of Agricultural Entrepreneurship in Malaysia

Nur Hani Mohd Nazir¹, Nurhanani Romli^2*, Mohd Faiz Mohamed Yusof³, Nurul Hila Zainuddin⁴, Azri Bhari⁵, Mohd Yahya Mohd Hussin⁶

^1,2,6Faculty of Management and Economics, Sultan Idris Education University, Tg Malim, Malaysia

^3,5Academy of Contemporary Islamic Studies, Universiti Teknologi MARA,  Shah Alam, Malaysia

⁴Faculty of Science and Mathematics, Sultan Idris Education University, Tg Malim, Malaysia.

^*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.9020108

Received: 28 January 2025; Accepted: 03 February 2025; Published: 05 March 2025

ABSTRACT

The Sustainable Development Goals (SDGs) Organization of the United Nations prioritizes food security as a primary goal. Global attention has been increasingly drawn to issues surrounding food security due to various challenges such as climate change, population growth, declining natural resources, supply chain disturbances, economic instability, and social gaps, among others. Issues: This is also one of the important topics at the national level because of food security, which refers to availability, access, use, and stability of food to ensure that people can obtain adequate and nutritious food in a way that is continuous. The agricultural sector plays an important role in ensuring the sustainability of national food securities. However, agropreneurs or entrepreneur farmers often face various challenges that affect the success and continuity of their business. Therefore, the study aims to clearly identify the factors that influence agropreneurs’ success in relation to profit. Methodology – This study employs a method question survey, which includes 40 respondents from a group of agropreneurs in Malaysia. Findings / Results – Findings from the study show that factors like skills and marketing have a significant relationship with business success.

Keywords: Food Security, Agriculture, Agropreneur, Agricultural Entrepreneur, Success Factors, Business, Lussier Model

INTRODUCTION​

Access to sufficient and safe food is a priority for all humans. The second Sustainable Development Goal (SDG-2 Zero Hunger) becomes a priority among the 17 Sustainable Development Goals available. Agboklou et al. (2024) aim to eradicate hunger, enhance nutrition, and guarantee the safety of food. It is a component of the critical Sustainable Development Goals (SDGs) organisation. The United Nations especially aims to reach “famine-zero” in the “coming” year 2030 (Ashraf et al., 2024). Food security refers to a situation where everyone has access—physically and economically—to sufficient, safe, and nutritious food to fulfil their nutritional needs. According to one study, about 820 million people around the world experience chronic hunger and malnutrition (Azmi et al., 2023). In addition to food availability, factors such as climate change, agricultural policy, and food access also play a role (Azmi et al., 2023; Manikas et al., 2023). The Food and Agriculture Organisation (FAO) estimates that food production must increase by about 60% by 2050 to fulfil the requests of the growing global population (Public Health Foundation of India, 2021).

Like most developing nations, Malaysia encounters significant challenges in guaranteeing food security for its growing population. Security The food situation in Malaysia is concerning due to its reliance on imports for essential food items, particularly rice. The country’s self-sufficiency rate for rice stands at approximately 70%, indicating that it still relies on external sources to bridge this gap (The Sun, 2022). About 25% of the national food supply comes from abroad, with local producers failing to fulfil domestic requests for vegetables and fruits (The Sun, 2022). In 2023, Malaysia imported food worth approximately RM78.7 billion, indicating an increase in dependence that poses a significant risk to food safety (Baba, 2024). Since Malaysia is an open economy, food prices are sensitive to external factors like climate change and geopolitics. Global events like the COVID-19 pandemic and geopolitical tensions like the Russia-Ukraine conflict have exacerbated the impact on food prices and supply chain disruptions (Azman, 2022).

Agriculture serves as a foundation for food security, playing a crucial role in addressing global challenges and ensuring food availability for a growing population (Oruma et al., 2021). One of the most direct contributions agriculture makes to food safety is its role in deep food production. The ability to produce sufficient food is important for fulfilling the nutritional needs of the growing global population, especially in areas where food insecurity is an ongoing challenge (FAO, 2019; Godfray et al., 2010). In addition to producing food, agriculture plays an important role in stabilising prices. Effective agriculture can help stabilise food prices, improve local production, and reduce dependence on imports. Insufficient production agriculture can lead to supply shortages, improve prices, and impact market stability (Suffian & Suffian, 2021). Therefore, the study’s objective is to investigate the factors that determine business success among agropreneurs and entrepreneur farmers in Malaysia.

Problem Statement

The agricultural sector plays an important role in ensuring food safety and maintaining growth in the economy. The agricultural sector not only provides food but also supports the economy through the creation of employment and income. In Malaysia, agriculture contributes to 7% of the country’s GDP and involves more than 1.6 million workers (Astro Awani, 2023). Agriculture is a sector important to the deep Malaysian economy because it contributes to jobs and output. In a country known for its cruelty, how has the improvement in the price of deep agriculture affected both farmers and consumers? Increased costs of agricultural inputs, like fertilizer, have caused vegetable and fruit prices to be very high (Sharifulden, 2022).  For instance, the inflation rate in Malaysian food increased by 7.2% in August 2022 compared to the previous year, primarily due to an increase in deep-group foods, particularly vegetables (Sharifulden, 2022). Flow inflation directly impacts power-buy users, especially those in the deep-circle content house, as their food expenses significantly contribute to their overall income. According to reports, the deep-circle content house B40 income group spends more than 30% of their income on food.

This also puts pressure on top farmers. Farmers find themselves in deeply challenging situations, grappling with rising production costs and finding it difficult to pass these costs on to consumers. The increase in the Producer Price Index (PPI) indicates that despite an increase in production costs, farmers often struggle to increase the prices they charge to users in a proportionate manner. This is because the producer, namely the farmer, absorbs many cost increases without being able to move it completely to users (Sharifulden, 2022). This can bring about a reduction in profit margins for farmers, making it difficult for them to maintain their operations or invest in deep improvements. This puts pressure on small and entrepreneurial farmers, who often operate with thin profit margins and have limited access to credit or capital. This also encompasses the rapidly rising costs of agricultural inputs such as fertilisers, seeds, and equipment, which farmers must contend with. As input costs increase more quickly than output prices, profit margins for farmers will shrink and can cause a decline in production capacity in the long term. An imbalance can lead to a downward cycle in agricultural production, which in turn exacerbates the problem of food shortages and drives up food prices (Arsanti & Perkasa, 2022).

Agropreneurs, or entrepreneurial farmers, are in the front line for driving innovation, sustainability, and growth in this deep sector. Agropreneurs play a significant role in implementing traditional deep change methods in agriculture, addressing challenges in the deep sector of agriculture, and contributing to both food security and economic development. Government bodies have created and established the concept of agropreneurship as a means to enhance security in food-based agriculture (Jaafar et al., 2023). Agripreneurs engage in a wide range of aspects of agriculture, such as crop cultivation, livestock management, business agriculture, food processing, and more. They often take advantage of innovation and technology to improve efficiency, productivity, and sustainability in deep practice agriculture (Wongtschowski, 2021). Agripreneurship, a term used to describe entrepreneurship in the deep sector of agriculture, encompasses innovative approaches to agriculture, added value, and the marketing of agricultural products (Yusoff et al., 2015). Ahmad Rashid et al. (2023) show that the waqf mechanism in the livestock sector has very good potential to be developed in Malaysia due to government policies related to the livestock industry, the need to increase food security, and the trend of waqf development in Malaysia, which is increasingly diversified in maximising the benefits of Islamic economic instruments through waqf. The agricultural industry in Malaysia has the potential to implement the findings of this study. It emphasizes the integration of entrepreneurship and agriculture, with the goal of establishing sustainable businesses while addressing concerns about food safety. While this is true, agropreneurs continue to encounter numerous obstacles that hinder their ability to generate profit in their deep-rooted business ventures. This situation negatively impacts agropreneurs’ efforts to contribute to national food safety. Therefore, it’s crucial to understand the factors that influence business success and effort in order to develop a strategy that can improve performance and support national food safety.

LITERATURE REVIEW

In 1995, Robert N. Lussier established the Lussier model as a framework to predict the success or failure of small enterprises (Lussier, 1995). This empirical model-based research identifies many non-financial aspects influencing outcomes, rendering it highly beneficial for nascent enterprises entering the market. This model was originally founded on data from US enterprises and has now undergone extensive testing in diverse international contexts, including Europe, the Middle East, Ghana, Chile, Pakistan, Palestine, and numerous other nations. The Lussier Model identifies five principal variables crucial for forecasting corporate success or failure (Lussier and Corman, 1996). Variables encompass capital, storage documentation and financial control, industry experience, management experience, strategic planning, professional consultancy, education, workforce, product/service duration, economic conditions, owner’s age, partnerships, parental ownership of the business, minority ownership, and marketing proficiency. The Lussier model is a widely acknowledged framework for assessing success or failure in business. This model has received approval in multiple nations and has demonstrated considerable efficacy in forecasting the profound determinant of success or failure in business (Gyimah & Lussier, 2021). This approach has employed extensive, diverse studies to forecast outcomes across many industries, demonstrating its versatility and relevance in multiple business contexts.

A study by Lussier and Corman (1996) created a predictive model for business success versus failure, primarily focusing on entrepreneurs with 0-10 employees. Multiple aspects, including advisory input, planning, education, minority business ownership, parental business ownership, record storage, financial control, capital, industry experience, and economic conditions, predicate this strategy. The study employs a stepwise discriminant analysis to elucidate 54% of the variance in deep success versus failure, achieving a predictive accuracy of 75%. Research underscores the constraints of standard model-based ratio finance in predicting business failures and demonstrates that qualitative data can be equally beneficial. Objective: This research aims to create a model to predict business success or failure, independent of financial metrics. Young refers to businesses with 0-10 workers and those aged up to 10 years. This model, comprising 15 identified variables, is derived from 20 publications and journals that contribute to business success or failure. The methodology study involves sampling from six New England states, yielding a response rate of 43%. The study included a sample of 45 failed and 51 successful enterprises, utilizing data obtained from Chapter 11 bankruptcy records.  Study results indicate that ten out of fifteen variables are significantly predictive of business success or failure. The model’s validity and dependability are evidenced by its capacity to forecast business outcomes with greater accuracy than random guessing, achieving a significance level of p = .0006. This study suggests that the Lussier model can provide advantages to multiple stakeholders, including entrepreneurs, investors, and public policymakers, albeit it should be employed in conjunction with a risk prediction technique. A further study by Lussier and Pfeifer (2001) examined the applicability of predictive models in relation to the success of Lussier (1995), who originally used US data for enterprises in Eastern Europe. This model identifies definitive elements such as personnel, educational attainment, use of professional counsel, and strategic planning as determinants of corporate success and failure, highlighting the significance of human resources. This problematic trust is prevalent in Eastern Europe, where human sourcing has minimal impact on superior commercial outcomes. The research aims to test and cross-validate the model across several national contexts in order to develop a universally applicable one. Due to the typically limited financial data from small enterprises, this study emphasizes the significance of interest, rather than finance, as a predictor of business success. The Lussier model consists of a “full” model with 15 variables and a “reduced” model that emphasizes planning, expert advice, education, and personnel.  Small enterprises significantly impact the economy by generating a greater proportion of profits relative to medium and big enterprises. Investigate the use of version inquiries.  The modified Lussier survey effectively elucidates the distinction between language and education, with a response rate of 37%. The study determined that education and personnel are strong indicators of performance, whereas planning and advisory professionals are not substantial predictors. The simplified model is noteworthy because it statistically forecasts success and failure in Croatian businesses, despite exhibiting dissimilar performance compared to US data. The Lussier model demonstrates greater accuracy in forecasting success in Croatia, whereas it is more effective in predicting failure in the United States. This indicates that, despite the model’s utility, the local context may affect its efficacy. This study suggests that education, personnel, guidance, professionals, and strategic planning are essential for successful business in Middle Eastern Europe, contradicting the belief that human resources are not significant. The study underscores the capacity of predictive models across the country to aid in deep resource allocation and produce results. Additional research is required to enhance the power model’s elucidation and evaluate its applicability in other nations.

Lussier and Halabi (2010) did a study to examine the reasons behind the success of certain businesses and the failure of others. RS has failed. This study evaluates the success model of 15 Lussier factors against predictive models of failure in Chile, utilizing a sample of 234 small enterprises, of which 131 failed and 103 succeeded.  This model has been validated in three distinct regions: the United States, Croatia, and Chile, demonstrating projected business outcomes with an accuracy of 96%. Examine this outline of interest to understand the impact of business success and failure on entrepreneurs, investors, and economists. This study aims to enhance the literature on shortage theory concerning variable prediction success and failure, with a specific focus on Chile. Background The economy of Chile is defined by deregulation and free markets, rendering it a significant subject for study. The selected Lussier model for examination is thorough about 15 variables from 20 prior studies and is unsuitable for financial research in small businesses. It employs theory-based sources for determination. Which source is pivotal for success or failure in business? This model encompasses variables including capital, storage records, industry experience, managerial experience, planning, and professional counsel. This study employs a survey methodology that utilizes a random sample from the Chamber of Commerce database in Chile. We investigated 373 enquiries from the 1,800 small firms surveyed, categorising 234 as identical, irrespective of their profitability-based success or failure. Discovery research aims to elucidate the actual variables that predict success or failure in business strategies, contributing to a foundational theoretical framework applicable worldwide. Yusof et al. (2024) discussed the potential of waqf instruments to improve success factors in the agriculture and livestock industry. This study found that financial assistance for agricultural and livestock waqf projects, a clear waqf land agreement period, appropriate land location and transportation facilities, the best quality of agricultural seeds and livestock breeds, and exposure to modern agricultural training can all contribute to the success of agricultural entrepreneurs who use waqf instruments.

A study by Hyder and Lussier (2016) investigated influencing factors of success or failure for small businesses in Pakistan. Hyder and Lussier conducted their research using a methodology survey, which included a sample of 143 small businesses as participants. They then analysed the results using logistic regression. The results underscore the importance of business planning, adequate capital, qualified personnel, and effective collaborations for achieving business success. Lussier’s model also proves its accuracy in the context of small and medium enterprises (SMEs). SMEs are important for a stable economy because they act as a buffer against current economic surprises, but the rate of failure for small businesses is permanently high globally, including in Pakistan. This study highlights the need for more research on success and failure in entrepreneurship in Pakistan, given that the available literature there is quite limited. Various countries have approved the Lussier model, which includes 15 variables, and have used it in deep studies to predict the success or failure of businesses in Pakistan. The application of the Lussier model in Pakistan is important because of the unique economic and socio-political context of the country. Research this to know definitely some The challenges faced by Pakistani entrepreneurs include a lack of capital, inadequate business planning, staff issues, and the need for partnerships. This study suggests that improvements are needed in policy government and system support, such as Party Powerful Small and Medium Enterprise Development (SMEDA), to better support SMEs. The results of the regression logistics analysis indicate that businesses with adequate capital, qualified staff, and strong partnerships have a higher chance of success. This study also reveals a high interest in business plans, despite the fact that many entrepreneurs in Pakistan lack the necessary skills to develop and implement them independently. This study aims to explore the potential of the Lussier model for adaptation and application in other developing countries that share similar economic conditions.

The study by Kabore (2017) also aims to understand the factors that contribute to the success or failure of SMEs in Burkina Faso. This study employs correlation analysis to examine the relationships between features such as ownership, business operations, resource management, time management, and profit. The study employs a quantitative design shape correlation approach, utilising theory-based sources (RBT) as a foundational framework. A random sample of 238 SMEs in Ouagadougou, Burkina Faso, participated in a thorough study that included comprehensive research questions. By reducing entrepreneurship failure and enhancing economic growth in Burkina Faso, the discovery study aims to contribute to positive social change. Analysis shows that 14 out of 15 variables do not lean toward giving donations in a way that is statistically significant for predicting profit. This study supports the validity of the Lussier model in predicting profit with implications for reducing failure in entrepreneurship and improving opportunities for work. The study’s findings hold significant importance for policy drafters, entrepreneurs, and institutions financing microfinance in Burkina Faso. The study provides insights into effective business strategies that can enhance the sustainability and success of small and medium-sized enterprises (SMEs). This study also highlights key areas of interest, including social capital and the strategic management of small businesses. Understanding the influencing factors can help entrepreneurs, advisors, and drafters maintain the performance of SMEs, thereby contributing to economic growth and improving the standard of living in Burkina Faso.

A study conducted by Baidoun et al. (2018), which aimed to identify the specific factors that contribute to the success or failure of small businesses in the West Bank, Palestine, further supports the validity of the findings. The use of the Lussier model in the context of SMEs. SMEs are important for growth, the economy, and job creation globally. SMEs play a significant role in creating jobs in many countries, including the United States and the EU. As mentioned in the previous deep study, SMEs have a high failure rate, and it is crucial to understand the factors that influence their success or failure. This study declares context. Politics and economics in Palestine are challenging due to the ongoing Israeli occupation and internal division politics. The Palestinian economy is highly dependent on Israel and SMEs operating under severe restrictions. Skeletal work control, unified regulation, and limited access to financing sources further complicate the business environment. This study uses a survey for testing the Lussier model with a sample of 246 small businesses in the West Bank. We collect data from the sample, which includes both successful and unsuccessful businesses, using question surveys and personal interviews. This study employs logistic regression analysis to definitively determine the role of fortune tellers in business success or failure. The study found that having sufficient capital, savings records, and excellent financial control; planning a special business; and getting professional advice from a fortune teller are important for business success. The model predicts business results with high accuracy, supporting its validity in Palestine. The discovery is consistent with similar studies conducted in other countries such as Israel and Pakistan. The results underscore the importance of factors critical to success, such as adequate capital and professional advice, in enhancing business opportunities in Palestine. The study suggests that draft policies and institutions must finance SMEs by providing the necessary resources and creating an environment conducive to business. The West Bank is the exclusive focus of this study, leaving out other Palestinian territories like Gaza and East Jerusalem. Future research must consider approaches and explore the usability of the model in the context of different socio-economic and political situations.

Bangarigadu and Nunkoo (2022) conducted a study using the Lussier forecasting model to investigate the factors contributing to the failure of SMEs in Mauritius. Mauritius. This study aimed to identify the specific factors that contribute to the success of SMEs, with the goal of enhancing their overall success rate. The study encompasses variables such as capital, storage record financing, experience management, and business planning. The study uses logistic regression models to analyse data from 129 SMEs in the retail and wholesale trade sectors in Mauritius. The study selected a sample based on convenience, as a comprehensive list of SMEs was not available. The study discovered that factors such as capital, savings record finance, experience management, business planning, and the use of a professional advisor significantly contribute to the success of SMEs. Lussier’s model shows a high accuracy forecast with an R-squared value of 0.7113. Discovery shows that entrepreneurs must focus on capital generation, maintaining record finances, and getting professional advice to improve opportunities for their success. The government and other stakeholders can use this information to support SMEs by providing financial assistance and training programs. This study contributes to understanding the factors that contribute to the success of SMEs in Mauritius and supports the global applicability of the Lussier model. It provides valuable perspectives for group entrepreneurs, policy drafters, and investors to enhance the success rate of SMEs.

Ma’aji et al. (2023) conducted a study on the factors that influence the success or failure of SMEs. They conducted an analysis of regression logistics against 392 SMEs in Cambodia, using the Lussier model. In Cambodia, SMEs account for over 75% of established enterprises and contribute significantly to the creation of large jobs. This study aimed to identify the key factors that determine the success or failure of SMEs in Cambodia, using regression analysis on data from 314 successful SMEs and 78 failed SMEs. The study aims to identify four crucial factors that significantly impact the success of SMEs: the owner’s educational level, marketing skills, customer complaints, and the business’s age. The forecasting model reached 95.5% accuracy, showing a strong correlation between this factor and the businThe correlation employs a comprehensive survey to collect both financial and non-financial data from small and medium-sized enterprises (SMEs). By prioritizing, managing customer relationships, and leveraging their operational experience, SMEs can increase their chances of success. SMEs in Cambodia can improve their chances of success by efficiently prioritizing, managing customer relationships, and leveraging their operational experience. experience. effectively. experience. experience. This provides valuable insights for entrepreneurs and legislators who aim to strengthen the SME sector and contribute to economic growth in Cambodia.

Alsaleh (2022) conducted further research on SMEs to comprehend the factors contributing to their success or failure in Saudi Arabia. It tests predictive models. The original Lussier’s successes and failures were developed using US data on a sample of Saudi Arabian SMEs and quantitative analysis. The Lussier survey modified this quantitative approach to collect data from 200 SMEs in Saudi Arabia, achieving a response rate of 58%. This study defines success as a business that consistently generates profit over a three-year period, whereas consistent losses signify failure. Analysis, including regression logistics, for evaluating interest in various variables, free deep predictive results, and business. The findings, which center on four main variables: staffing, education, advice professionals, and planning, accurately predict 94% of successful businesses in Saudi Arabia and 9.5% of failures.  The results reveal that factors like job level, education, use of professional advice, and planning influence business performance in a significant way. The accuracy of the entire model aligns with previous US studies, demonstrating the effective application of Lussier’s model in diverse contexts. Research is being conducted to identify the important variables (staff, level of education, advice professionals, and planning) that significantly influence business performance.  The proposal suggests that policy drafters should provide loans with low benefits and consult with professionals for improvement. Saudi Arabia’s Vision 2030 aligns with the success of SMEs.

A study by Gyimah et al. (2019) applied the Lussier model to predict success or failure for small businesses in Ghana. This study uses logistic regression to analyze data from 101 small failed businesses as well as 107 small successful businesses, and this confirms the validity of the Lussier model in Ghana. Findings identify three important variables, namely capital, economic time, and skills marketing, that deeply predict success or failure for small businesses in Ghana. Lussier’s model accurately predicts 86.5% of businesses globally, demonstrating its enhanced usability. This study emphasizes the importance of sufficient capital, good economic times, and skilled marketing for successful businesses.  A sample of 208 small businesses from Ghana’s ten regions participated in this study. The study employed regression models in logistics, incorporating 15 independent variables within the Lussier model. The lean variables are defined as success or failure based on business profit. This study also suggests testing Lussier’s model in different countries to evaluate the robustness and usability of his culture in a way that is widespread.

Another study by Adeola et al. (2021) explored critical success factors for small businesses in deep markets, particularly in Nigeria, and their potential to advance Sustainable Development Goals (SDGs) for the United Nations. The study used regression models for logistics to analyse data from 201 small businesses in Nigeria. The study’s discovery result confirms the validity of the Lussier model, which predicts the success or failure of 84.4% of businesses based on important factors such as sufficient capital, storage records, professional advice, timely products/services, and ownership by the business’s mother and father. Small businesses, which represent 92% of all businesses in developing countries, contribute noticeably to employment and GDP. Although However, over 70% of small businesses in the market now appear to face challenges like a lack of access to credit. This contributes to a high failure rate within the first five years of operation. This study involves surveying owners of Nigerian businesses who use the Lussier model with a sample of a total of 201 respondents. The results indicate that successful businesses possess a higher level of resources, including significant differences in capital, storage records, planning, professional advice, product/service time, and ownership by parents. This has practical implications for entrepreneurs, policy drafters, and other stakeholders who support the growth of small businesses and businesses to achieve the SDGs.

A study by Gyimah and Lussier (2021) also examined factors critical to the success or failure of small businesses in deep rural communities in new markets, especially in Ghana. This study emphasizes the importance of entrepreneurship in rural areas in achieving sustainable economic development with reduced poverty, creating employment opportunities, and fostering economic growth.  This study employs regression models for logistics, testing predictive models of success against Lussier’s failure, using a sample of 230 businesses from rural communities. This study validates Lussier’s model with an accuracy of 71% in predicting business results, identifying capital, industry experience, personnel, and marketing skills as the most important factors that distinguish successful businesses from those that failed. This study aims to identify specific variables that contribute to business success or failure, including capital, storage record, industry experience, and management experience. It also highlights the significance of predictive models in finance, such as the Lussier model, which encompasses 15 variables proven to be significant contributors to business results in previous studies. Overall, the study provides insight into the factors that influence successful entrepreneurship in rural areas and provides practical recommendations for enhancing results in deep market new product launches.

Manaf et al. (2012) test the validity of Lussier’s model in the Malaysian context by analyzing three main aspects of entrepreneurship: influencing factors, deep business involvement, and critical success factors. The study, which involved 70 entrepreneurs, found that the primary motivators for business involvement are the desire for freedom and satisfaction, followed by family support, aspirations for wealth, and independence. This study aims to identify four critical success factors: experience management, industry experience, economic situation, and skills planning. The factors that have been found to have a significant correlation with the level of profit highlight their importance in entrepreneurship training programs. The study employs the sampling group method, concentrating on entrepreneurs from diverse business types within the chosen region. We collect data through a survey that divides into four parts: background, business information, motivational factors, and success factors, all based on the Lussier Model. The majority of entrepreneurs reach a level of profit comparable with the average industry, with 75.7% enjoying profit during more than three years. This study reveals a deep circle of high-achieving entrepreneurs. This study concludes that experience management, the experience industry, the situation economy, and skills plans are important for successful entrepreneurship. The study suggests that sector programs, the government, and the private sector should prioritize factors that enhance entrepreneurship success and lower the bankruptcy rate. Future research must develop the Lussier model for insert sizes more successfully beyond profit.

Another study conducted by Jaafar et al. (2021) examined the factors that determine the success and risks faced by small market traders at the Mega Farmers Market in Shah Alam, Selangor. The aim of this study is to provide traders and government agencies with insights to enhance the services provided to traders across Malaysia. This study highlights factors of success for main farmers market traders, like selling products according to customer requests, planning business, managing finances, and having dedicated employees. The discovery is consistent with previous research that emphasized interest in strategic planning and control.  The study was conducted at the Mega Farmers Market in Shah Alam, using a question-adapted survey from the previous Lussier study model. A total of 150 forms of the questionnaire have been distributed, with 73 complete answers collected. The analysis indicates that selling products, fulfilling deep requests, planning the business, and managing finances are the key factors for success. Risk is primarily associated with significant increases in raw material costs, challenges in renewing licenses, and disruptions in the supply chain. The study concludes that effective marketing practices and strategic business planning are crucial for the success of farmers market traders. The study also underscores the importance of a collaborative government approach to manage raw material prices and provide support to small traders. Explore this unique initiative for the Mega Farmers Market in Shah Alam, and perhaps it could extend to all Farmers’ Market locations in Malaysia.

Lussier’s model is important for entrepreneurs and managers in business because it provides a structured approach for evaluating potential risks and opportunities in deep operations. Focusing on indicators rather than finance, this model assists businesses in identifying specific areas for potential improvements, thereby enhancing their chances of success. In a way Overall, the Lussier model works as a valuable tool for understanding dynamic business performance, especially for company startups and small enterprises driving competitive markets. ​

Aspect The critical point of the Lussier model is the criteria for categorizing businesses as successful based on two main indicators: operating status and profitability.  The Lussier model does not explicitly include profit as a direct variable. On the contrary, it categorizes firms based on performance—whether they are successful or failed.  According to Gyimah et al. (2019), we classify a firm as successful if it can operate and make a profit, and as a failure if it is losing money or has a profit level below average. The business must be medium-operating, meaning it is not stopping activity or going out of business (Lussier & Corman, 1996; Gyimah et al., 2019).  The first criterion for determining business success in the Lussier model is its operational status. For a business to be considered successful, it must be actively operating and deeply engaged in its core activities. This meaningful firm is not stopping operations or going out of business. One cannot overstate the significance of the company’s operational status; it signifies its ability to consistently progress and withstand market challenges. Business, which is still working, shows power, resistance, and adaptability, characteristics important for long-term success.

Businesses should also generate profit at least at the level of the average industry. Lussier & Corman, 1996; Gyimah et al., 2019 classify a firm as a failure if it makes a profit below average or loses money. The second criterion, known as the advantage, pertains to the indicator-based health finance business. According to the Lussier model, a successful business must generate profits that are at least comparable to those of the average industry. Profit marks not only the company’s ability to bear costs, but also its ability to create value for its owners and holders, highlighting its importance. Conversely, a firm is considered a failure if it operates at a loss or achieves profits below average. Focus on profits; this highlights the model’s emphasis on performance finance as the main determinant of success.

This approach allows the model to focus on a variety of factors, not just finances, that contribute to business results, making it highly suitable for businesses of all sizes that do not have a broad financial focus. The dual criteria enables entrepreneurs to critically evaluate their business efforts, identify areas for improvement, and enhance their chances of long-term success in a competitive and deep-growing market. Therefore, the Lussier model serves as a valuable tool for understanding dynamic business performance, particularly for small companies striving for deep growth and advancement within their respective industries.

RESEARCH METHODOLOGY

This is a quantitative study that uses a survey design. The researcher employs a quantitative method to enable the discovery of generalizations across large samples.  Furthermore, the method is quantitatively useful for deep answer question studies (Chinedu et al., 2021). The accepted design is based on an objective study that identifies critical success factors for agropreneurs. The study’s participants are active agropreneurs in the agricultural sector. Data was collected using a question survey structured out of 40 agropreneurs with a focus on producing state plants in Malaysia using sampling techniques for the purpose. The form question survey has been distributed in a way that continues our face-to-face conversations with 40 entrepreneurial farmers who grow and sell the result of their own plants. The primary objective of the sampling process is to highlight specific characteristics within the targeted population, with the aim of addressing the research study question, “What factors of success influence business entrepreneur farmers in Malaysia?” The study distributed a total of 40 sets of survey questions. Pilot studies provide preliminary data that can inform the design shape of the main study and calculate the sample size. This data assists researchers in gauging the anticipated outcomes (J., 2017). A total of 40 respondents is sufficient for a pilot study, and it also allows for the evaluation of the reliability of the survey questions used in this research. According to Moran & Budiu (2024), a sample size of 40 respondents is generally considered sufficient for a pioneering study, particularly a quantitative study on usability. Amount this is often recommended because it achieves a balance between collecting sufficient data to make possible predictions about the whole population.

Construct the main study using a five-point Likert scale (1 = not at all agree, 2 = no agree, 3 = neutral, 4 = agree, and 5 = strongly agree) with various items. Factors that influence success for entrepreneurial farmers are measured with eight (15) items adapted from Lussier & Corman (1996). Manaf et al. (2012) also adapted items for both level profit and average level profits.

Construct Reliability

The analysis reliability factor has been tested using Cronbach’s Alpha according to the sequence for test reliability consistency on internal scales. Cronbach’s Alpha is a size statistic used to evaluate the internal consistency or reliability of scale sets or test items. For this study, the data obtained is analysed using the SPSS application. Construct a Cronbach’s Alpha range study between 0.81 and 0.89. For the purpose of research, an alpha value of 0.6 or less generally indicates a lack of internal reliability consistency, which is considered unsatisfactory; values exceeding 0.7 indicate a level of reliability that can be accepted, and values above 0.8 are considered good (Sekaran, 2003). Based on the above, instrument​ study can be trusted.

Table 1: Reliability Values

A total of 40 respondents were involved in the deep study pilot. This is based on Table 1: 72.5% of respondents are entrepreneurial farmer men, and 27.5% are entrepreneurial farmer women. The majority of entrepreneurial farmers are from the group aged 54 years and older (37.5%), followed by the group aged 30-35 years (20.0%). Of the ethnic group, 97.5% are Malays and 2.5% are Chinese. The study revealed that entrepreneurs are farmers from a variety of backgrounds and educational levels, with the majority being 32.5% at the SPM level and the remaining 30.0% holding diplomas or STPMs. A total of 82.5% of respondents live in rural areas, while 17.5% are in urban areas. A total of big entrepreneur farmers, which is 50%, were found involved in deep sector agriculture for more than 10 years.

Table 1: Profile Respondent

Table 2 shows the profile of business entrepreneurs in agriculture, which includes various agricultural activities, such as fruit (25.0%), rubber (5.0%), coconut oil palm (20.0%), vegetables (17.5%), and crops paddy (32.5%). Number location business is mostly only 1 location (67.5%) only. In terms of shape ownership, business farmers, the majority are just business individuals (77.5%). Of aspect number workers, some big respondents have number employees between 1 and 5 people, followed with respondents who only work for themselves.

Table 3: Business Information Respondent

Table 3: Average Level Profit Agri- Entrepreneurs (N=40)

Table 3 shows the level of profit for entrepreneurs in deep business ventures. Data shows the majority of entrepreneurs, which is 67.5%, obtained an average level of the same benefits with average acquisition in the industry, while 22.5% are lower and 10.0% are higher than the average acquisition in the industry.

Table 4: Rank Factors Success Entrepreneur (N=40)

According to Lussier (1995), measuring the success of an entrepreneur is determined by the level of profit earned, like discussed previously. Temporary factors that influence the success of an entrepreneur are various and consist of 15 factors, such as capital, storage records, and control finance; experience in the industry; experience in management; and skills in planning. In Table 3, the average analysis score reveals that the most significant factors contributing to the success of entrepreneur farmers are storage records and control finance, with an average score of 3.80 points. Conversely, the least significant factor contributing to donations is the background of the business’s mother and father, scoring only 1.70 points. The findings suggest that factors such as storage records & control finance, skill planning, technology use, industry experience, marketing skills, product/service timing issues, professional advisors, and economic conditions significantly influence an entrepreneurial farmer’s ability to make a profit in their business. Table 3 shows rank-influencing factors for successful business entrepreneurs and farmers. Baidoun et al. (2018) support this by identifying the importance of having sufficient capital, maintaining savings records, controlling good finances, creating unique business plans, and seeking professional advice for business success. A study by Lussier & Corman (1996) also identified ten important variables that contribute to success or failure in business, namely advisor, professional, planning, education, ownership of business by a minority, staff, mother-father who owns business, storage records and control finance, capital, experience in the industry, and economic times. Bangarigadu and Nunkoo (2022) also identified capital, savings record finance, experience management, business planning, and the use of professional advisors as important predictors for business success. Furthermore, the discovery result study from Hyder & Lussier (2016) highlights interest in planning business, sufficient capital, the right staff, and partnerships for successful business. The study results were further validated by a discovery study conducted by Jaafar et al. (2021), which identified four key factors that significantly contribute to business success. These factors include selling products according to customer requests, planning the business, managing finances, and having dedicated employees. Lussier’s (1995) study also identified four significant fortune-telling businesses, highlighting the importance of planning, advisory professionals, education, and staff. Alsaleh (2022) also discovered that factors such as staff, level of education, use of professional advice, and planning significantly predict business performance, a finding that aligns with a predictive model of Lussier’s successes and failures. Studies like this, in a way, strongly support result discovery research. This is where factors like storage records and control finance, skills planning, experience management, industry experience, skills marketing, product/service timing, professional advisors, and circumstances in the economy influence the success of business entrepreneurs and farmers in Malaysia.  Rank influencing factors of success for business entrepreneurs and farmers divided into three categories based on the guidelines proposed by Oxford and Burry-Stock (1995) for variables measured on a five-point Likert scale. In accordance with Oxford and Burry-Stock’s (1995) study, Table 4 presents the classification range mean score at three distinct levels: low (less than 2.40), medium (2.41-3.40), and high (3.41-4.50).

 Table 5: Relationship Factor Success with Level Profit

**Correlation is significant at the 0.01 level (2-tailed).

There are numerous influencing factors for successful entrepreneurs, as detailed in Table 4. However, which factor significantly contributes to the top profit-earning entrepreneurs in farming? Lussier (1995) found a positive correlation between critical success factors for an entrepreneur and their profit level. This aligns with the Lussier model’s emphasis on measuring an entrepreneur’s potential success by the amount of profit they generate. In Table 5, a one-way Pearson correlation test has been carried out to test to what extent all 15 factors determining success for an entrepreneur are correlated in a positive and significant way with profit earned by the entrepreneur. Based on the findings obtained, only one factor can be considered critical to the success of an entrepreneur, namely skills in marketing (r = 0.451, k < 0.01). Although there are various factors that contribute to an entrepreneur’s success, statistics only consider one critical factor. This is meaningful even though an entrepreneur can think that his success is influenced by various factors; however, the level of significance of factors concerning it is different from side perception and statistics. Research by Gyimah et al. (2019) supports these findings, identifying three important variables that influence small businesses in Ghana, one of which is skills marketing. Gyimah et al. (2019) highlighted the importance of factors such as skills marketing in ensuring a successful business outcome. Gyimah and Lussier’s (2021) research findings also underscore the significance of skills in marketing as a deep predictor of business success or failure in rural areas within emerging markets. Gyimah and Lussier (2021) highlight that skills marketing is one of the most critical factors identified for distinguishing success from a failed business. Generally, skills marketing can be considered critical (significant) because it helps entrepreneurial farmers identify their target market and promote their products in an effective way. Without an effective marketing strategy, the product may not receive enough attention, leading to a reduction in sales. In the meantime, skilled agropreneurs can adjust their products or services to fulfill requests, market deeply, and improve opportunities for success.  With a robust marketing strategy, agropreneurs can enhance profits by increasing sales, diversifying their market, and promoting high-value products.

CONCLUSION

In conclusion, agriculture plays an important role as the primary source of food production for ensuring national food security (Oruma et al., 2021). In this context, Malaysia also faces the challenge of maintaining its food security, largely due to its reliance on agriculture. The country’s agricultural sector is characterized by a dual structure: large-scale commercial farms and smallholder farms. Malaysia is a global leader in the production and export of palm oil, rubber, and cocoa, all of which contribute significantly to the economy. According to the Department of Statistics Malaysia (DOSM), the agricultural sector is expected to contribute approximately 7.4% to the country’s GDP in 2022, with palm oil alone accounting for 37.5% of total agricultural output. However, the sector’s heavy reliance on cash crops has resulted in the neglect of food crop production, making Malaysia increasingly dependent on food imports. In recent years, the government has aimed to diversify agricultural activities to enhance food security. The National Agrofood Policy 2021-2030 seeks to boost the production of staple foods such as rice, vegetables, and livestock. According to the Lussier Model, 15 variable factors influence the success of agricultural entrepreneurs. This model has been validated in various countries and has proven predictive power in determining business success or failure (Gyimah & Lussier, 2021). Lussier’s model has been tested through logistic regression analysis in numerous studies and is a reliable predictor of business success versus failure (Adeola et al., 2021). Based on an analysis of the 15 variables influencing business success for entrepreneurs and farmers, as proposed by Lussier (1995), the study identified one significant variable critical to their success: marketing skills. This study suggests that entrepreneurs and farmers with in-depth knowledge can develop their abilities to implement effective strategies, allowing them to secure higher profits from their business endeavors. Furthermore, entrepreneurial farmers who possess greater awareness of the factors driving success can more effectively navigate the agricultural business landscape. This approach is essential for increasing the number of successful farmers and thereby strengthening national food security.

ACKNOWLEDGEMENTS

This research was funded by the Malaysia Ministry of Higher Education, under the Fundamental Research Grant Scheme (FRGS), FRGS/1/2023/SS01/UPSI/02/7.

REFERENCE

1. Adeola, O., Gyimah, P., Appiah, K. O., & Lussier, R. N. (2021). Can critical success factors of small businesses in emerging markets advance UN Sustainable Development Goals? World Journal of Entrepreneurship Management and Sustainable Development, 17(1), 85–105. https://doi.org/10.1108/wjemsd-09-2019-0072
2. Agboklou, K. E., Özkan, B., & Gujrati, R. (2024). Challenges to achieving zero hunger by 2030: the impact of armed conflict on global food security with a focus on the Russo-Ukrainian War. Journal of Lifestyle and SDGs Review, 4, e01595. https://doi.org/10.37497/2965-730x.sdgsreview.v4.n00.pe01595
3. Ahmad Rashid, U. S., Mohamed Yusof, M. F., Bhari, A., & Roslan, M. (2023). Pembangunan wakaf penternakan di Malaysia: satu sorotan awal. Journal of Contempory Islamic Studies, 9(1), 1-14.
4. Alsaleh, A. Y. (2022). A Business Success versus Failure Prediction Model for Small and Medium Enterprises in the Kingdom of Saudi Arabia. Journal of University Studies for Inclusive Research, 9(11), 8384-8413.
5. Arsanti, I. W., & Perkasa, H. W. (2022, December). Vegetables for Food Security and Economic Growth. In International Symposium Southeast Asia Vegetable 2021 (SEAVEG 2021)(pp. 508-515). Atlantis Press.
6. Ashraf, J., Jun, M., Ali, S., Ghufran, M., & Xiaobao, P. (2024). Zero-hunger through the lens of food security in populous Asia: pre and post-pandemic. Frontiers in Sustainable Food Systems, 8. https://doi.org/10.3389/fsufs.2024.1210385
7. Astro Awani. (2023, Jun 07). KKM perkukuh usaha standard keselamatan makanan. Retrieved from Astro AWANI Network Sdn. Bhd.: https://www.astroawani.com/berita-malaysia/kkm-perkukuh-usaha-standard-keselamatan-makanan-422805
8. Azman, N.H. (2022) Food costs rise on Russia-Ukraine war, The Malaysian Reserve. Available at: https://themalaysianreserve.com/2022/03/04/food-costs-rise-on-russia-ukraine-war/
9. Azmi, F. R., Zailani, S., & Roni, M. (2023). A Review of the Critical Gaps in the Food Security Literature: Addressing Key Issues for Sustainable Development. Information Management and Business Review, 15(2 (I)), 35-46. https://doi.org/10.22610/imbr.v15i2(I).3440
10. Baba, S. (2024, November 3). Malaysia food security: Challenges and opportunities amid a growing population – Twentytwo13. Twentytwo13. https://twentytwo13.my/malaysia-food-security-challenges-and-opportunities-amid-a-growing-population/#google_vignette
11. Baba, S. (2024, November 3). Malaysia food security: Challenges and opportunities amid a growing population – Twentytwo13. Twentytwo13. https://twentytwo13.my/malaysia-food-security-chbabaallenges-and-opportunities-amid-a-growing-population/
12. Baidoun, S. D., Lussier, R. N., Burbar, M., & Awashra, S. (2018). Prediction model of business success or failure for Palestinian small enterprises in the West Bank. Journal of Entrepreneurship in Emerging Economies, 10(1), 60–80. https://doi.org/10.1108/jeee-02-2017-0013
13. Bangarigadu, K., & Nunkoo, R. (2022). A Success versus Failure Prediction Model for Small Firms. Journal of African Business, 24(4), 529–545. https://doi.org/10.1080/15228916.2022.2119015
14. BERNAMA. (2023, April 10). AI bantu petani jamin sekuriti makanan negara. https://www.bernama.com/bm/tintaminda/news.php?id=2224818
15. FAO. (2019). The State of Food Security and Nutrition in the World 2019. (2019). In FAO eBooks. https://doi.org/10.4060/ca5162en
16. Food security and unsustainable agriculture in Malaysia. (2022, July 4). thesun.my. https://thesun.my/home-news/food-security-and-unsustainable-agriculture-in-malaysia-LK9048692
17. Godfray, H. C. J., Beddington, J. R., Crute, I. R., Haddad, L., Lawrence, D. P., Muir, J. F., … & Toulmin, C. (2010). Food security: the challenge of feeding 9 billion people. Science, 327(5967), 812-818. https://doi.org/10.1126/science.1185383
18. Gyimah, P., & Lussier, R. N. (2021). Rural Entrepreneurship Success Factors: An Empirical investigation in an Emerging market. Journal of Small Business Strategy, 31(4). https://doi.org/10.53703/001c.29470
19. Gyimah, P., Appiah, K. O., & Lussier, R. N. (2019). Success versus Failure Prediction Model for Small Businesses in Ghana. Journal of African Business, 21(2), 215–234. https://doi.org/10.1080/15228916.2019.1625017
20. Gyimah, P., Marom, S., & Lussier, R. N. (2019b). Small business success or failure Prediction: A comparative study in Ghana and Israel. Journal of Applied Business and Economics, 21(3). https://doi.org/10.33423/jabe.v21i3.2079
21. Hyder, S., & Lussier, R. N. (2016). Why businesses succeed or fail: a study on small businesses in Pakistan. Journal of Entrepreneurship in Emerging Economies, 8(1), 82–100. https://doi.org/10.1108/jeee-03-2015-0020
22. Jaafar, F., Kamarudin, W. K. W., & Yaman, S. A. M. (2021). Penentu Kejayaan dan Risiko Perniagaan Pasar Tani Mega di Seksyen 13, Shah Alam, Selangor.
23. Jaafar, M., Jalali, A., Suffarruddin, S. H., & Ramasamy, N. (2023). The Determinants of Becoming Sustainable Agropreneurs: Evidence from the Bottom 40 Groups in Malaysia. Sustainability, 15(10), 8283. https://doi.org/10.3390/su15108283
24. Kabore, F. (2017). Factors Predicting Profitability of Enterprises Funded by Microfinance Institutions in Burkina Faso(Doctoral dissertation, Walden University).
25. Lussier, R. N. (1995). A Nonfinancial Business Success versus Failure Prediction Model for Young Firms. Journal of Small Business Management, 33(1), 8.  Retrieved from https://www.proquest.com/scholarly-journals/nonfinancial-business-success-versus-failure/docview/221008471/se-2
26. Lussier, R. N., & Corman, J. (1996). A business success versus failure prediction model for entrepreneurs with 0-10 employees. Journal of Small Business Strategy (archive only), 7(1), 21-36.
27. Lussier, R. N., & Halabi, C. E. (2010). A Three-Country Comparison of the Business Success versus Failure Prediction Model. Journal of Small Business Management, 48(3), 360–377. https://doi.org/10.1111/j.1540-627x.2010.00298.x
28. Lussier, R. N., & Pfeifer, S. (2001). A crossnational prediction model for business success. Journal of Small Business Management, 39(3), 228–239. https://doi.org/10.1111/0447-2778.00021
29. Ma’aji, M. M., Shrubsall, R. S., & Anderson, E. O. (2023). Determinants Of Sme Success Or Failure In Frontier Markets. International Journal of Banking and Finance, 18(1), 1–30. https://doi.org/10.32890/ijbf2023.18.1.1
30. Manaf, A. A., Omar, N. H., & Yee, L. K. (2012). Faktor kritikal kejayaan usahawan dalam perniagaan. e-BANGI, 7(1), 34-45.
31. Manikas, I., Ali, B. M., & Sundarakani, B. (2023). A systematic literature review of indicators measuring food security. Agriculture & food security, 12(1), 10. https://doi.org/10.1186/s40066-023-00415-7
32. Nederlof, E. S., Wongtschowski, M., & van der Lee, F. (Eds.). (2011). Putting heads together: Agricultural innovation platforms in practice(Vol. 396). Amsterdam: KIT publishers.
33. Oruma, S., Misra, S., & Sanz, L. (2021). Agriculture 4.0: An Implementation Framework For Food Security Attainment In Nigeria’s Post-Covid-19 Era. Ieee Access, 9, 83592-83627. https://doi.org/10.1109/access.2021.3086453
34. Public Health Foundation of India. (2021, February 10). Literature Review on food system and healthy diets (BKP) – Public Health Foundation of India. Public Health Foundation of India -. https://phfi.org/fsahdt/literature-review-bkp/
35. Sharifulden, N. S. A. N. (2022). The looming global food crisis: An overview. Khazanah Research Institution, 25.
36. Suffian, F., & Suffian, F. (2021). Policy Analysis: Food Security in Malaysia. E-Proceeding 8th International Conference on Public Policy and Social Science (ICoPS) 2021, 486-490.
37. Yusoff, A., Ahmad, N. H., & Halim, H. A. (2015). Promoting Agropreneurship among Gen Y: An integration of individual, institutional and social level factors. Australian Journal of Basic and Applied Sciences, 9(14), 74-86.
38. Yusof, M. F. M., Romli, N., Bhari, A., Khalid, M. M., & Yaakob, M. A. Z. (2024). Potential For Improving The Implementation Of Agricultural And Livestock Waqf: A Systematic Literature Review (SLR). al-Qanatir: International Journal of Islamic Studies, 33(3), 175-185.