By Shuang Liu (MSc student in Organic Agriculture)
Urban agriculture is thriving across the world along with rapid urbanization. It is usually valued as a public-good generating activity for its social and ecological benefits. Recently, however, there is a growing trend of urban farmers becoming commercial and they seem to be extremely diversified in practice. Yet, little is known about the business approaches developed by entrepreneurial urban farmers.
In this research, I took urban agriculture as a revenue generating and job creation activity by focusing on more market-oriented projects. I tried to describe individual urban agriculture business operations under the framework of the business model. An online questionnaire was distributed worldwide followed with statistical analysis. The questionnaire was designed using nine business building blocks from Business Model Canvas. Based on the reported business characteristics, a cluster analysis was performed in order to find patterns underlying the diversity of their businesses. In total 46 respondents from 18 countries across 6 continents completed the questionnaire and as sucht contributed to the results of my thesis.
Great diversity in their business operations was found among the 46 projects. Various projects produce a wide range of products and conduct activities for diverse functions. They also manage different relationship with their customers and clients. Distinctions were also found between continents and projects with different purposes. All this heterogeneity brings challenges to describe and understand urban agriculture business. Thus an exploratory cluster analysis was adopted in order to simplify the diversity.
Drawing on the business characteristics, cluster analysis has generated five types of business model: Diversification, Primary Food Production, Value Differentiation, Service Provision and Innovative Operation. For more information about the diversity encountered and for the characteristics of the five business models, please have a look at my MSc thesis
This study provides a rough picture of how initiatives across the world are operating their projects. Classification of business models could be a precursor for future studies on topics such as the relationship between business model and performances, innovation of urban agriculture business models, and economic performance of urban agriculture etc.
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