Diversification strategy in small and medium size agribusinesses in the Czech Republic - impulses for searching business opportunities

Abstract

Abstract: The paper derives from the working and publication activities from research project "Chances of product diversification on behalf of improvement of competitive advantage in the small and middle-size farming business in the Czech Republic". This paper deals with the critical success factors for successful diversification at the small and middle-size farming business. For the purpose effective implementation of the diversification have been identified the principal influences of this issue. Besides of that, we have tried to measure a diversification's impact for an entrepreneurial profit in agricultural area. There is a definition of "diversification" as new farmer's activities for using profit opportunity. On the base of 50 units-exploration has been made a hypothesis validation of the most often impulse for doing diversification. That is an effort to utilize more effectively the product factors of farming business. Further, there was a validation of the effective and efficiency diversifications' characters.

Keywords

• diversification strategy
• impulses
• small and medium size business