Evaluating the Role of Farmer Producer Organizations (FPOs) in Strengthening Business Ecosystems for Entrepreneurial Growth: Evidence from Nadia District, West Bengal, India

Abstract

Farmer Producer Organizations (FPOs) have emerged as significant institutional mechanisms for strengthening agribusiness systems and promoting entrepreneurial growth among small and marginal farmers. This study examines the role of FPOs in influencing key business ecosystem functions that support entrepreneurial upscaling. The research was conducted among member farmers of two selected FPOs in Nadia district, West Bengal, based on primary data collected in August 2023 from 150 respondents (75 from each FPO). A mixed-method approach, integrating structured interviews with qualitative insights, was employed to capture organizational dynamics and ecosystem functioning. The study evaluates critical ecosystem functions including market linkage facilitation, resource mobilization, institutional coordination, capacity building, value-chain integration and governance efficiency. The findings indicate that well-functioning ecosystem components significantly enhance farmers’ entrepreneurial orientation, access to services, collective bargaining power and prospects for enterprise expansion. FPOs operate as catalysts by facilitating market participation and fostering innovation within the agribusiness system. Nevertheless, challenges related to governance, institutional convergence and capacity enhancement persist. Addressing these gaps are essential for advancing the neo-institutional transformation of FPOs and achieving sustainable entrepreneurial upscaling. The insights generated hold important implications for policymakers, development agencies and FPO leaders engaged in building resilient and market-responsive farmer collectives.