Economic viability of youth agribusiness as a key issue for effective development of the agricultural sector in developing countries

Abstract

Abstract Public agricultural interventions in developing countries have long sought to foster youth entrepreneurship. Yet, expected outcomes such as income generation, poverty reduction, and food security remain limited, highlighting persistent challenges of sustainability. This study examines the economic viability of youth-led agribusinesses and identifies key determinants to pinpoint more effective policies for livelihood improvement and agricultural growth. Conducted in the Republic of Benin, the survey collected three years of data from randomly selected youth agribusinesses. Quantitative methods were applied to construct indicators of economic viability assessment and to analyze determinants through logit regression. Findings reveal that while most youths engage in agricultural basic production, only a minority succeed in establishing economically viable enterprises. Technical support and financial assistance are scarce, and current subsidy mechanisms often produce adverse effects. Market targeting and profitability emerge as critical drivers of long-term economic success, while many of the current forms of subsidies have a negative impact. Policy implications suggest prioritizing entrepreneurial training focused on market dynamics and profitability, alongside innovative financing mechanisms. Strengthening networking opportunities for experience and innovation sharing, and partnerships is also essential to enhance agribusiness sustainability and contribute to sectoral growth.