International Journal of Commerce and Management Studies (IJCAMS)

Peer Reviewed, Indexed Journal, ISSN 2456-3684

Vol.7, No.2, 2022, www.ijcams.com

Agripreneurship in the Present Environment: A Case Study

of Western Uttar Pradesh
Mr. Mohd Umar Farukh*
Email- [email protected]
Research Scholar,
Department of Commerce,
Aligarh Muslim University, Aligarh, India

Prof. Nawab Ali Khan

Email- [email protected]
Chairman, Department of Commerce,
Aligarh Muslim University, Aligarh, India

ABSTRACT farmers or for their livelihood. Through this domain, key

data is collected from Saharanpur, Baghpat, Muzaffarnagar,
Moving from agriculture to agribusiness is an important
Meerut and Shamli region of Uttar Pradesh.
way to bring about change or transformation in Indian
agriculture and to create an attractive and profitable Keywords: Agripreneures, farmers, employment
business. Agripreneurship has the potential to generate generation, agribusiness, entrepreneurial
growth, diversify revenue, provide employment competencies
opportunities and businesses in rural areas. This paper
focuses on the basic concepts of Agripreneurship, business
skills and Agripreneurship development needs and
INTRODUCTION
opportunities in this area. As Farmers are the backbone of
our country there is a need to develop certain farmers in the The Indian economy is actually an agricultural
current environment. For the purpose of the study, the
economy, with more than 60 percent of the
researcher took five counties west of Uttar Pradesh namely,
population dependent on agriculture. After
Saharanpur, Baghpat, Muzaffarnagar, Meerut and Shamli.
The main power in these regions is sugarcane, rice and independence, more than half of the country's
wheat. Although there is significant growth in the income was invested in agriculture and more
agricultural sector, the growth rate is not very satisfactory than 70 percent of the total population depended
compared to the secondary and tertiary sectors. The overall
on agriculture (Pandey, 2013). The agricultural
growth rate in agriculture may not be very helpful in
reducing poverty in India, unless agricultural growth and integrated sectors are considered to be the
accelerates. However, the transformation of agriculture into Indian economy mainly because these are
Agripreneurship, is an important way to revitalize Indian important sources of underdeveloped industries
agriculture and create a lucrative and lucrative business due
and require a wide range of industrial products
to the continued decline of agricultural-based land and
especially fertilizers, pesticides, agricultural
widespread unemployment. This paper has tried to find out
whether Agripreneurship is a tool to increase the income of products and a variety of commodities (Bairwa
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Vol.7, No.2, 2022, www.ijcams.com
et al., 2014a)). Presently, agriculture is changing needed to achieve those goals (Bairwa & Lakra
its shape and increasing its scope beyond the 2014). Poverty in rural areas and slow
traditional farming and animal husbandry for agricultural growth require the establishment of
livelihood of rural population as the activities agribusinesses in order to be more productive
like diversification, value addition, precision and profitable in agriculture. The
farming, high-tech agriculture, Agripreneurship, Agripreneurship program is needed to develop
global marketing, organic farming etc. are entrepreneurs and management staff to take care
gradually getting due attention of people of the global agricultural industry (Bairwa et al.,
involved on redefining agriculture. 2014b). Agripreneurship is strongly influenced
Agripreneurship is an employment strategy that by economic, educational and cultural status
can lead to economic self-sufficiency of rural (Singh, 2013).
people (Abdullah, et al, 2013). As a result of
AGRIPRENEURSHIP: AN
changing social, economic, political,
INTRODUCTION
environmental and cultural activities around the
Agripreneurship is a business process that takes
world, farmers’ choices to survive and to ensure
place in agriculture or in affiliate sectors. It is a
that success in changing their economic
process of adopting new methods, processes,
conditions become more critical. It is also
strategies for agriculture or integrated
important to note that the emergence of a free
agricultural sectors, in order to achieve better
global market economy has led to the
productivity and economic benefits.
development of a new business spirit of
Agripreneurship transforms agricultural work
“Agripreneurship” and an increase in the
into entrepreneurial activity. Agriprenuer is a
individual's need to do his business (Alex,
founder, driving change in the rural economy,
2011). The term Agripreneurship is synonymous
embracing new ideas in agriculture and related
with agribusiness and refers to the establishment
sectors. He takes risks, adopts new things,
of an agribusiness and agribusiness sector.
develops new ways of doing things and buys
Agripreneurship transforms agricultural work
new markets. Dollinger (2003) defines
into entrepreneurial activity. Dollinger (2003)
agribusiness as the establishment of a new
defines agribusiness as the establishment of a
economic entity for the purpose of growth or
new economic entity for the purpose of growth
profit under conditions of risk and uncertainty in
or profit under conditions of risk and uncertainty
agriculture.
in agriculture. On the other hand Gray (2002)
defines an entrepreneur as a person who runs a
business with the aim of growing the business
and the leadership and management skills
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 International Journal of Commerce and Management Studies (IJCAMS)
Peer Reviewed, Indexed Journal, ISSN 2456-3684
Vol.7, No.2, 2022, www.ijcams.com
Table – 1 Areas of Agripreneurship

Terms Description
Agripreneur entrepreneur whose main business is agriculture or agriculture-related
Agriculture + Entrepreneur = Agripreneur
Agripreneurship Generally, sustainable, community-oriented, directly-marketed agriculture.
Sustainable agriculture denotes a holistic, systems oriented approach to farming
that focuses on the interrelationships of social, economic, and environmental
processes
Agribusiness Provide farm equipments on hire, sale of inputs and other services. These centres
Centres will provide a package of input facilities; consultancy and other services with the
aim of strengthen transfer of technology and extension services and also provide
self employment opportunities to technically trained persons.
There is an immense scope of honey production and bee-keeping in the country due
Beekeeping to its wide area of flora and fauna. This is such a growing venture where even as
illiterate and resource poor men/women can start their own with no land required.
India ranks 1st in milk and milk product production. Livestock management and
Animal Husbandry cattle rearing has been the part of our day to day life. Rearing of improved breed
and their proper’s management can give a good return to the farmers.
Another major small industry which can be started very easily is production of
Fruit and vegetable various fruits and vegetables preserved items viz., Potato chips, Potato fingers,
preservation Potato pappad, Mango and Litchi Squashes, Jam, Jelly Marmalade, Mixed
vegetable, Tomato pickles, Tomato sauce, Ketchup etc.
India is major producer of vegetables viz., Potato, Onion, Eggplant, and
Horticulture based Cauliflower. Bihar is known for its Shahi Litchi, other fruits grow are Mango,
enterprises Guava, Citrus, Banana, Papaya, Ber, Pineapple and Makhana. Flavor of its Spices,
red Chilli and Coriander spreads all over the country.
Source: Verma et al (2018). Opportunities in agri-preneurship in India: Need, challenges and future
prospects. Rashtriya Krishi, 13(1), 69-72

ROLE OF AGRIPRENEURSHIP IN INDIAN ECONOMY

Agripreneurship plays a different role in the growth and development of the national economy through
entrepreneurial development that increases income and employment opportunities in rural and urban areas
(Bairwa et al., 2012). Agripreneurship also plays the following role in the economic system (Sah, 2009).
It helps to alleviate the productive benefits of smallholder farmers and integrate them into the local,
national and international markets. It helps to reduce food costs, provide uncertainty and improve the food
supply of the rural and urban poor in the country. It also creates growth, increases and diversifies revenue,
and provides business opportunities in rural and urban areas (Nagalakshmi, 2013). It also helps to
alleviate production benefits for smallholder farmers and integrate them into local, national and
international markets. It helps to reduce food costs, provide uncertainty and improve food security for the
rural and urban poor in the country. It also increases, increases and divides revenue and provides business
opportunities in rural and urban areas.
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Vol.7, No.2, 2022, www.ijcams.com
AREAS OF ENTREPRENEURSHIP DEVELOPMENT IN AGRICULTURE

Nowadays, easy access to technology, the emergence of small budgets, liberal government regulations,
awareness and training programs in the agricultural sector and affiliated organizations and the changing
attitudes of highly skilled people to work in the agricultural sector have contributed significantly to
economic development. The power of Agripreneurship in India (Bairwa et al., 2014). Agriculture has a
number of business areas that include activities such as Creating, Goat breeding, rabbit farming,
Floriculture, fishing, Shrimp farming, sheep rearing, vegetable growing, kindergarten farming, forestry
planting (Pandey, 2013). Potential commercial areas for agriculture are: -

Table – 2 Areas of Agripreneurship

Terms Description
Agro produce There units do not manufacture any new product. They merely process the
processing units agriculture produce e.g. Rice mills, Dal mills, decorticating mills etc.
Agro Produce These units produce entirely new products based on the agricultural produce as
manufacturing units the main raw material. E.g.-Sugar factories, Bakery, Straw board units etc.
Agro-inputs These units produce goods either for mechanization of agriculture on for
manufacturing units increasing manufacturing plants, e.g.-Fertilizer production units food processing
units, agricultural implements etc.
Agro service centres These include the workshops and service centre for repairing and serving the
agricultural implement used in agriculture.
and Source: Verma et al (2018). Opportunities in agri-preneurship in India: Need, challenges and future
prospects. Rashtriya Krishi, 13(1), 69-72

OBJECTIVES OF THE STUDY

• To discuss the opportunities and barriers for emerging Agripreneures.

• To study the present position of Agripreneures in western Uttar Pradesh.

• To understand the challenges that serve as barriers to business skills development in the
agricultural sector of Western Uttar Pradesh.

• To analyze the agri-business activities of farmers in western Uttar Pradesh.

RESEARCH METHODOLOGY

The present study is of descriptive and exploratory, relevant source of literature search and information
are extensively adhered during the course of study. The study encompasses the five district of western
Uttar Pradesh viz. Meerut, Baghpat, Saharanpur, Muzaffarnagar and Shamli. The present study was
carried out by considering primary data. The primary data were collected through questionnaire and
survey from the sample district. A total of 100 respondents were considered for the study. There are 20
respondents from each sample districts were selected for the purpose of data collection.
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Vol.7, No.2, 2022, www.ijcams.com
Table – 3 Research Methodology

Nature of the Study Descriptive and Exploratory

Nature of Data Primary Data
Source of Data Questionnaire and Survey
Sample of the Study Saharanpur, Baghpat, Muzaffarnagar, Meerut and Shamli (Uttar
Pradesh)
Tenure of Study 2020-2021
Source: Researchers compilation

Table – 4 Issues and Challenges for Agripreneurs

Challenges Remedies
Lack of Funds Set up of Finance cell
Lack of Infrastructure Concessional rates of interest
Risk Suitable supply of raw material
Marketing Problems and Competitions Offering training facilities
Lack of technological Dissemination Setting up marketing co-operatives
Legal formalities and regulations New Financing Instruments
Availability of Resources Supportive Infrastructure
Lack of technical knowledge Financial Literacy among farmers
Quality Control Facilitating Electronic Payment System
Low skill level among farmers Portable Smart Technology
Source: Verma et al (2018). Opportunities in agri-preneurship in India: Need, challenges and future
prospects. Rashtriya Krishi, 13(1), 69-72
Table – 5 Areas for Agripreneurship

Term
Agro produce Three units do not manufacture any new product. They merely process the
processing units agriculture produce e.g. Rice mills, Dal mills, decorticating mills etc.
Agro Produce These units produce entirely new products based on the agricultural produce as the
manufacturing main raw material. E.g.-Sugar factories, Bakery, Straw board units etc.
units
Agro-in puts These units produce goods either for mechanization of agriculture on for increasing
manufacturing manufacturing plants, e.g.-Fertilizer production units food processing units,
units agricultural implements etc
Agro service These include the workshops and service centre for repairing and serving the
centers agricultural implement used in agriculture
Miscellaneous Besides the above mentioned areas, the following areas may prove to be encouraging
areas to establish agri enterprises such as setting up of Apiaries, feed processing units,
seed processing units, mushroom production units, commercial vermin- compose
units, goat rearing farmers club, organic vegetable and fruits retail outlet, bamboo
plantation and jatropha cultivation.
Source: Verma et al (2018). Opportunities in agri-preneurship in India: Need, challenges and future
prospects. Rashtriya Krishi, 13(1), 69-72
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 International Journal of Commerce and Management Studies (IJCAMS)
Peer Reviewed, Indexed Journal, ISSN 2456-3684
Vol.7, No.2, 2022, www.ijcams.com
Table – 6 Challenges for Agripreneurship

Challenges Suggestions for Development

Poor Infrastructural Facilities Promoting Entrepreneurial Culture
Poor Entrepreneurial Culture among People Entrepreneurial Education
Talent Migration from rural to Urban Improve Infrastructural Facilities
Poor Technologies and Equipment Identifying Thrust Area for Agripreneurship
Development
Problems in marketing of Agricultural Providing Technical Training Program
Products
High Costs of Physical Logistics Establishment of Agricultural Incubation Centre
Unresponsive Government Policies Provide Financial and Marketing Support
Promoting Exports of Agri Products
Source: Verma et al (2018). Opportunities in agri-preneurship in India: Need, challenges and future
prospects. Rashtriya Krishi, 13(1), 69-72

CHALLENGES FACED BY AGRIPRENEURS IN WESTERN UTTAR PRADESH

Shortage of Funds: The shortage of finance for local businesses is one of the major problems which are
facing Agripreneures especially due to the global economic downturn. The main sources of funding for
rural areas are loans from rural regional banks or Zamindars but their interest rates are usually very high.
Other state-owned enterprises also function as the State Treasury and the State Industrial Development
Corporation (SIDC).

Lack of Infrastructure: The growth of rural entrepreneurs is far from healthy despite government efforts
due to a lack of adequate and adequate infrastructure.

Risk: Rural entrepreneurs are less likely to take risks due to lack of funding and external support.

Problems of Marketing and Competition: Rural entrepreneurs face stiff competition from large
corporations and urban entrepreneurs. The biggest problems traders face are the problem of suspension
and competition from large units. They face a dilemma in setting standards and adhering to them.

DATA ANALYSIS AND INTERPRETATION

The primary data has been collected through questionnaire and survey from the sample districts. There are
total 100 respondents selected for the study from the five districts of western Uttar Pradesh. There were
20 respondents selected from each sample districts for the purpose of research. The analysis and
interpretation are as follows:
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Table 7 Respondents’ Age

Age No. of Respondents’ Percentage

25 to 30 16 16%
31 to 40 60 60%
41 to 50 22 22%
51 and above 2 2%
Total 100 100%
Source: Data collected and calculated from the field study through questionnaire

The above table shows that 60 per cent of the total 100 respondents belong to the age group of 31-40
years, 22 per cent falls within the age group of 41-50, 16 per cent of the Agripreneures age group is 25-30
years and remaining 2 per cent respondents’ age group is above 51 years.

Table 8 Educational Qualifications

Qualification No of respondents Percentage

Illiterate 9 9%
1st to 10th 31 31%
Inter to degree 46 46%
Degree above 14 14%
Total 100 100%
Source: Data collected and calculated from the field study through questionnaire

The above table explains the number of respondents which points towards that most of the Agripreneures
are 46 per cent done secondary education with graduation, there are around 31 per cent of the
Agripreneures finished Xth standard class. It is noted that around 14 per cent of the Agripreneures are
completed their post graduate while only 9 per cent of the respondents are illiterate in the sample districts
of western Uttar Pradesh.

Table 9 Agriculture Land Holding

Agriculture field No of respondents Percentage

Small (Less than 2hec) 29 29%
Medium (2 to 8 hec) 46 46%
Large (more than 8 hec) 25 25%
Total 100 100%
Source: Data collected and calculated from the field study through questionnaire
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Vol.7, No.2, 2022, www.ijcams.com
The table 9 explains the agriculture land holding of respondents of sample districts of western Uttar
Pradesh. It points towards that 25 per cent of the Agripreneures are the owner of large farmers, 46 per
cent of the Agripreneures are the medium owner while 29 per cent respondents are small farmers.

Table 10 Annual Income

Annual income No of respondents Percentage

Less than 1 lakh 33 33%

1-3 lakh 41 41%
More than 3 lakh 26 26%
Total 100 100%
Source: Data collected and calculated from the field study through questionnaire

The above graph elucidate the yearly income of Agripreneures in sample districts of western Uttar
Pradesh. It is evident that most of the Agripreneures are 41 per cent between 1lack to 3 lakh. There are
around 33 per cent between fewer than 1 lakh and 26 per cent more than 3 lakhs.

Table 11 Family Size

Family size No of respondents Percentage

Small family 36 36%
Joint family 46 46%
Large family 18 18%
Total 100 100%
Source: Data collected and calculated from the field study through questionnaire

The table 11 presents the structure of the family of Agripreneures of sample districts of western Uttar
Pradesh. It is cleared from the above table that most of the Agripreneures are belongs to small family i.e.
with 36 per cent, 18 per cent of the Agripreneures are belongs to large family and 46 per cent from joint
family of the western Uttar Pradesh.

Table 12 Turnover from Agricultural Field

Turnover Rs. No of respondent’s Percentage

Less than10000 41 41%
10000 to 99999 31 31%
More than 1 lakh 28 28%
Total 100 100%
Source: Data collected and calculated from the field study through questionnaire
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The table 12 explains the Gross Sales from Agricultural Field of respondents from sample districts of
western Uttar Pradesh. It is noted that 28 per cent of the Agripreneures gross sales Rs.1lack, 41 per cent
of the Agripreneures were receiving fewer than Rs.11,000 from their farming land, 31 per cent of the
people were receiving Rs.10,000 to Rs. 99,999.

Table 13 Production of Agricultural Products for Commercial Sale

Agriculture products for

No of Respondents Percentage
commercial sales
Yes 76 76%
No 24 24%
Total 100 100%
Source: Data collected and calculated from the field study through questionnaire

The above table shows that 76 per cent of the Agripreneures said that they are producing agricultural
products for commercial use remaining 24 per cent said that they are not producing for commercial use.

Table 14 Sale of Agri Product in the Market

Agriculture products for

No of Respondents Percentage
Commercial Sales
Directly 76 76%
Through Middle Man 14 24%
Agent 10 10%
Total 100 100%
Source: Data collected and calculated from the field study through questionnaire

The table 14 presents the selling of products of Agripreneures in the sample districts of western Uttar
Pradesh. It is noted that 76 per cent of the Agripreneures sold goods in the marketplace, 14 per cent of the
Agripreneures are dependent on mediators while rest 10 per cent of the Agripreneures were depends on
agents.

Table 15 Type of Agricultural Products

Agriculture Products No of Respondents Percentage

Commodity Crops 24 24%
Specialty Crops 42 42%
Fish 16 16%
Any other 18 18%
Total 100 100%
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Source: Data collected and calculated from the field study through questionnaire

The above table shows that 42 per cent of the Agripreneures depending on specialty crops, 24 per cent of
the Agripreneures depending on commodity crops, 16 per cent of the Agripreneures depending on
aquaculture i.e., farming fish, remaining 18 per cent of the Agripreneures depending on other type of food
products.

Table 16 Number of Crops in a Year

Number of Crops No of Respondents Percentage

1 18 18%
2 68 68%
3 14 14%
Total 100 100%
Source: Data collected and calculated from the field study through questionnaire
The above table shows that majority i.e. 68 per cent of the Agripreneures are depending on two crops per
annum, 18 per cent of the Agripreneures are depending on one crop pattern, followed by 14 per cent of
the Agripreneures are depending on three crop patterns per annum.

Table 17 Financial Assistance

Source of Financial Assistance No of Respondents Percentage

Bank 36 36%
Micro Finance 20 20%
Self-Finance 26 26%
From friends and relatives 18 18%
Total 100 100%
Source: Data collected and calculated from the field study through questionnaire

Table 17 exhibits the financial assistance CONCLUDING REMARKS

received by the Agripreneures from the various
Agricultural businesses share many aspects of a
sources for their Agripreneures. It is noted that
‘normal’ business, but also have their own
36 per cent of the respondents are availing funds
unique characteristics due to the particular
for their businesses from the banks, while 20 per
context of the agricultural sector. With better
cent taking from Micro finance, 18 per cent
conduct in industrial and business education,
respondents taking money from friends and
entrepreneurs will take advantage of access to
relatives.
human resources. The present study provides an
overview the present situation of Agripreneures,
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