Though the entrepreneurship literature has mostly focused on the antecedents of entrepreneurial intentions, little work has attempted to examine the factors that shape entrepreneurial behavior among practicing entrepreneurs. In order to fill this gap, this study examined the effect of environmental support on farmers’ entrepreneurial behavior and innovation, taking into consideration the mediating role of human and social capital. The sample consisted of 400 farmers from Iran’s Kermanshah province, selected through a multi-stage sampling method. Results indicate that human capital and social capital have a direct, positive, and significant effect on entrepreneurial behavior. Though no direct effect of environmental support on entrepreneurial behavior was found, results show that environmental support has an indirect, positive, and significant effect through the mediating role of human and social capital. Theoretical and practical implications are discussed to assist researchers, policy makers, planners, and business owners.
