Scribd
Upload
21 views20 pages

Entrep Module 5

Agricultural entrepreneurship involves the marketing and production of agricultural products, emphasizing the transition of farming into a commercial activity. It categorizes farmers into three types based on their market orientation and resources, and highlights the characteristics of successful entrepreneurs in this field. Key elements for starting an agri-business include identifying resources, evaluating risks, and ensuring market demand for products.

Uploaded by

rolynmagaro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
21 views20 pages

Entrep Module 5

Agricultural entrepreneurship involves the marketing and production of agricultural products, emphasizing the transition of farming into a commercial activity. It categorizes farmers into three types based on their market orientation and resources, and highlights the characteristics of successful entrepreneurs in this field. Key elements for starting an agri-business include identifying resources, evaluating risks, and ensuring market demand for products.

Uploaded by

rolynmagaro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 20

Agricultural

Entrepreneurship
Farming as a
business
What is agri-
entrepreneurship?
Entrepreneurship
that relates to the
marketing and
production of
various
agricultural
products, as well
as agricultural
inputs.
Agricultural
entrepreneurship
Why agri-
entrepreneurship?
• Latest trend in extension work:
• Agriculture should be seen as a
commercial activity
• Farmers are seen as entrepreneurs
• Farmer groups and cooperatives are
seen as enterprises
• The focus of extension services move
from poverty reduction to wealth
creation
Clients of agri-
entrepreneurship
Three categories of
farmers, as
identified by Bill
Vorley:
• Rural World 1: Globally
competitive farms linked to
formal markets
• Rural World 2: Locally
oriented farmers
• Rural World 3: Farmers
with fragile livelihood and
limited access to resources
Farmer types in agri-
entrepreneurship
Within the three categories of farmers,
the following farmer types are potential
agri-entrepreneurs:
• Women farmers
• Small-scale family farmers
• Medium-scale farmers
• Commercial farmers
Characteristics of a
successful entrepreneur
• Has the initiative, drive and ability to identify and take
advantage of opportunities;
• Is always looking for opportunities to improve and expand
their businesses;
• Thrives on change and copes well with risk and
uncertainty;
• Knows how to identify and evaluate risks and is willing to
take calculated risks, while accepting responsibility for
both profits and losses;
• Is a creative problem-solver, understands the decision-
making process and enjoys making decisions;
• Establishes strong partnerships and other relationships
and works well with other people; and
• Is an innovator who is always looking for better and more
Agri entrepreneurs as a new type of innovator

In this interview, Andy Hall, Researcher in the area of


Innovation Processes and Agriculture, answers a few
questions regarding agri-entrepreneurs as a new kind of
innovator and the roles they play in putting research into
use.
Elements involved in
starting a business
• Identifying the type of farming
business
• Identifying resources that the farming
business will require
• Analyse the cost of resources
• Evaluate the identified resources
• Identify risks
Why become an
entrepreneur?
Ask the client the following questions:
• What is the driving force behind your wish to set
up a new business?
• Do you know exactly what your business will do?
• Will you be making the most of your strengths?
• Can you make decisions and work well on your
own?
• Will your business make enough money for you?
Rewards of
entrepreneurship
Nature of The entrepreneur
reward
Wants to do something different
Personal satisfaction
and wants to choose their own
way of doing things.
Sees an opportunity to make a
Financial gain
profit by starting their own
business enterprise
Seeks the opportunity to make
Independence
his/her own decisions and to set
their own targets and standards
Wants to use their own skills and
Self-fulfilment
abilities more meaningfully and
profitably
Assess client readiness for a
business approach
Problem-solving:  Do you come up with solutions to
problems in your farming
operation or do you ask for help?
Facing challenges:  Do you see failure at a task as a
challenge or do you give up?

Money matters:  Do you believe hard work will


pay off?
Communication:  Can you explain processes and
procedures to others?
 Can you express yourself clearly
when communicating with your
suppliers, buyers and other role
players?
Elements of a good
business opportunity
• There is a demand in the market for the product;
• The product meets a need or solves a problem;
• The business opportunity works in a particular
location;
• The farmer has the resources to take on the
business opportunity;
• The farmer can provide the product at the right
price that attracts customers, while making a
profit; and
• The timing for the business is right.
Defining a business idea

• Identify a product or service;


• Define the market;
• Identify main competitors; and
• Identify resources.
101 Ways to make money in Africa: business ideas for
entrepreneurs in Africa: rice

In this short video, you'll see how AfricaRice, a local company, is using rice produced
by local farmers to create more market friendly products for the local market. This
innovative strategy is sure to significantly boost the value of locally produced rice.
Farming as a business in Eastern Africa
In this video, you will see success stories from the FAO Food Security
through Commercialization of Agriculture (FSCA) Programme funded by
the Italian Development Cooperation in Eastern Africa.
Viability of the business
idea
A viable business idea:
• Covers the expenses of producing or
manufacturing a product;
• Generates adequate profit;
• Withstands business risks; and
• Meets the goals set by the owner.
The business gap and the
niche market
Business gaps range
from the need for
new products to
changing a current
product, or offering
it in an alternative
way, e.g. importing
bulked soybean or
providing organic
coffee to the
international market.
The feasibility study

The feasibility study is a tool to study the


viability of a business idea by:

• Identifying potential problems and


opportunities;
• Determining objectives;
• Defining successful outcomes; and
• Assessing costs and benefits involved in
alternatives for solving problems.
Key activities in agri-
business
• Crop production activities
• Marketing and sales
• Accounting activities
• Administrative activities
• Managing farmer groups and human
resources

You might also like