Entrepreneurial attitudes and probability for start-ups—an investigation of Norwegian non-industrial private forest owners

Agricultural policy has in the last 50 years taken much of the risk and the initiative away from Norwegian farm forest owners. Subsidies in agriculture have guaranteed an acceptable income and there has been neither need nor incentives for starting up new activities at the farms. This situation is now gradually changing. The income both from agriculture and forestry is decreasing and farm forest owners have either to move, to find job opportunities outside the farm or to start up new activity at the farm using the farmʹs resources. Entrepreneurship theory is used to study the question why some farm forest owners choose to start up some new activity based on the forest resources they have. We identify two main elements of entrepreneurship; the ability to recognise business opportunities and the ability to take calculated risk. In a survey to 500 forest owners in southern Norway (response rate 45%), we included questions about opportunity recognition and risk aversion. From the answers, we were able to split the forest owners in two groups, those with entrepreneurial attitudes and those without. Using logistic regression we found a significantly higher probability for start-up of new activities in the group with entrepreneurial attitudes. This result has very interesting policy implications. Many studies show that entrepreneurial attitudes to a large degree can be learnt. The first way of learning about entrepreneurship is through the education system and through courses and training of forest owners. The other way is ‘learning by doing’, which is most probably the most efficient way to learn about entrepreneurship. Public policy should stimulate more owners to ‘do’, by that they will ‘learn’ and that will again lead to more entrepreneurial activities at the holdings.