The split entrepreneurial identity of the farmer Kari Mikko Vesala Department of Social Psychology, University of Helsinki, Helsinki, Finland Juuso Peura University of Helsinki, Institute for Rural Research and Training, Mikkeli, Finland, and Gerard McElwee Lincoln Business School, University of Lincoln, Lincoln, UK Abstract Purpose – This research shows that entrepreneurship is currently at the focus of much theoretical, practical and political interest. In Europe, agriculture has faced increasing pressures for restructuring: facilitation of marketing and entrepreneurial skills of farmers and a stronger entrepreneurial orientation have been suggested as a possible solution for the emerging problems. The purpose of this paper is to examine the concept of entrepreneurial capability of farmers to diversify. The central focus of this article is on the entrepreneurial identity of portfolio farmers in Finland and the extent to which the differences between portfolio farmers, other farmers, and non-farm rural businesses can be explained. Design/methodology/approach – The subjects of the study were rural small-business owner-managers and farmers in Finland. The authors carried out a survey of random samples from three populations, each representing a broad cross-section of relevant industries, including a sample of non-farm rural entrepreneurs (n ¼ 590) and portfolio farmers (n ¼ 2; 200). Findings – It emerges that portfolio farmers have a stronger entrepreneurial identity than conventional farmers. Compared to conventional farmers, the portfolio farmers in the sample perceive themselves as growth-oriented, risk-takers, innovative, optimistic and having more personal control upon their business activities. Originality/value – This research suggests that a major challenge for the agricultural sector is to enable farmers to develop their entrepreneurial and marketing skills. This might require increased economic support and greater emphasis on vocational education and training. Keywords Entrepreneurs, Diversification, Entrepreneurialism, Agriculture, Finland Paper type Research paper Introduction This paper deals with an important question for rural policy which focuses upon the potential and implications of farm entrepreneurship. According to the Agricultural Census of 2000, 27 per cent of Finnish farmers own another enterprise in addition to their farm (TIKE, 2001). The most recent figures produced by the Centre for Rural Research (2003) indicate that nearly 60 per cent of all agricultural holdings in the UK have at least one form of diversified activity. From these figures, it might be concluded that entrepreneurial activity is common within the farm sector. In the small business research literature, portfolio farmers also labelled as industrial pluriactive farmers (Eikeland, 1999). Diversified farmers have received relatively little research attention The current issue and full text archive of this journal is available at www.emeraldinsight.com/1462-6004.htm The study was funded by the Ministry of Agriculture and Forestry, Finland. JSBED 14,1 48 Journal of Small Business and Enterprise Development Vol. 14 No. 1, 2007 pp. 48-63 q Emerald Group Publishing Limited 1462-6004 DOI 10.1108/14626000710727881