Perception of Risk in Farm Activities: A Comparison of Matrix Analysis with Results from Multifactorial Linear Regression

Risk is ubiquitous, and entrepreneurs face it daily. In this study “risk” refers to the negative impacts on businesses. The research was conducted in the Korçë District, Albania, to gauge farmers' perceptions of risk factors. The study aims to identify these factors, assess their severity, and propose strategies for their management. The objectives include understanding and analyzing risks in production, marketing, financing, law enforcement, and human resources management. Through a combination of matrix analysis and the multi-factorial linear regression method, the study concluded that farmers' perceptions did not align with the regression results. The research findings indicated that farmers need to address several key challenges: hail, frost, low prices, difficulties in accessing the market, understanding and implementing laws, meeting financial obligations, lack of funding resources, low profits, and labor shortages. This research contributes valuable insights into agricultural risk management, benefitting local farmers, scientific researchers, and policymakers at both regional and national levels.