RURAL YOUTH AND THEIR ENTREPRENEURIAL BEHAVIOUR IN FARMER PRODUCER ORGANIZATIONS (FPOS): EXAMINING THE THEORY OF PLANNED BEHAVIOUR USING PARTIAL LEAST SQUARES STRUCTURAL EQUATION MODELING (PLS-SEM)

Abstract

Entrepreneurial behaviour among rural youth plays a vital role in transforming the agrarian economy particularly through collective institutions like Farmer Producer Organizations (FPOs). This study aims to examine the psychological and contextual factors influencing entrepreneurial behaviour among rural youth engaged in FPOs, guided by Ajzen’s Theory of Planned Behaviour (TPB). The model proposes that entrepreneurial behaviour is predicted by behavioural intention, which in turn is shaped by entrepreneurial attitude, subjective norms, perceived behavioural control and entrepreneurial self-efficacy. A structured questionnaire was administered to a purposive sample of 200 rural youth across three agriculturally significant districts in Tamil Nadu namely Coimbatore, Tiruppur and Erode selected for their prominence in coconut cultivation. Respondents were active members of coconut-based Farmer Producer Organizations (FPOs), providing a relevant institutional context for the study. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to evaluate both the measurement and structural models. The results confirmed the reliability and validity of the constructs. Behavioural intention was found to significantly predict entrepreneurial behaviour. Among the predictors of intention, perceived behavioural control exhibited the strongest influence followed by entrepreneurial self-efficacy and entrepreneurial attitude. Subjective norms however had an insignificant effect. The findings underscore the centrality of individual belief systems particularly confidence in one’s capability and perceived control over entrepreneurial tasks in shaping rural youth's entrepreneurial intention and behaviour. The study also highlights the enabling role of FPOs as a platform for entrepreneurial engagement. Policy implications point to the need for targeted capacity-building programs, institutional support and localized entrepreneurial ecosystems that foster motivation, skills, and opportunities for rural youth.