Abstract:

Continuous education and lifelong learning are crucial elements for the success of businesses, particularly for rural entrepreneurs who confront a dynamic and ever-changing environment. This includes the advent of new technologies altering production processes, unpredictable weather patterns stemming from climate change posing threats to production, and persistent challenges such as an aging rural population and ongoing urbanization. Hence, rural entrepreneurs require educational strategies enabling them to continually adapt their businesses to such circumstances. However, before embarking on such educational endeavors for themselves and/or their employees, entrepreneurs need insights into the potential costs and benefits involved.

Simulation models play a pivotal role in addressing such concerns. They offer a means to depict how various policies and strategies may impact the operations of a system, such as a rural enterprise. Thus, this paper seeks to explore the impact of continuous education on the operations of an agricultural enterprise, within the context of the OREN project (E+ 2021-1-IT02-KA220-ADU-000033510), which aims to develop an educational platform tailored specifically for rural entrepreneurs.

Employing the methodology of System Dynamics, a computer-based framework illustrating how a system's structure influences its behavior over time, a simulation model was developed. Expert input gathered in Rome in July 2023 informed the creation of a Causal Loop Diagram and subsequent quantitative model of an agricultural business. This model, in its basic form, represents an agricultural production system along with crucial factors affecting it, such as surrounding land, meteorological and hydrological conditions, soil quality, and demographic characteristics of the simulated area.

After model development, several scenarios were simulated by adjusting parameter values, incorporating an Educational Policy into the model. This policy theoretically could enhance employee productivity but may also increase enterprise costs. Initial findings indicate that despite cost increases, even modest investments in education and training could yield cumulative positive effects on production. Simulation results demonstrate that over time, production increases, and even during periods of lower-than-expected output (e.g., due to adverse weather conditions), the troughs are not as severe as in the basic scenario lacking education.

In conclusion, the System Dynamics model underscores the significance of continuous education in agricultural entrepreneurship, particularly its enduring effects over time. Continuous learning stands to enhance the adaptability of rural entrepreneurs to external shocks, thereby bolstering the likelihood of sustainable business practices.

Keywords:

System Dynamics, Agricultural Entrepreneurship, Lifelong Learning, Simulation.