KEY ROLE & BUSINESS STRATEGY FORMING ENTREPRENEURSHIP IN ORGANIC FARM BUSINESS

Welcome to online India.

In previous episode we have discussed over general study on future of Organic Farming.

Many Questions arises in our mind that-

1.     Why we are here today?
2.     Why we are discussing about Organic Farming?

3.     How would we get benefit by learning Organic Farming?

4.     What will be the strategy?

5.   What will be our key role?

Now we come in point to point answers & discuss elaborately on topic: -

Now let’s come to the point: -

1.       Why we are here today?

We are here to make a team identifies a business opportunity and acquires and deploys the necessary resources required for exploitation Entrepreneurship in Organic Farm Business which targeting a great economy growth developing potential in India. It belongs to a strong supply demand chain & seems to grow rapidly in future.

Organic Farm products have infinite Opportunities for Entrepreneurs willing to set up their Enterprise in this domain.

2.      

          Why we are discussing about Organic Farming?

Top Ten reasons that Organic food is getting popular today:-

1.         Organic Farming reduces The Toxic Load: Keeps Chemicals Out of the Air, Water, Soil and our   Bodies, so supporting organic agriculture doesn’t just benefit your family; it helps all families live less toxically.

2.         Eliminate Off Farm Pollution

3.         Protects Future Generations

4.         Builds Healthy Soil

5.         Organic Food Tastes Better with Truer Flavour

6.         Assist decent Family life & good earning of Farmers

7.         Avoids Hasty and Poor Science in our Food chain & enhance immunity power

8.         Organic Food Eating with a Sense of Pride – since it’s truly natural.

9.         Promotes Biodiversity

10.     Celebrate the Culture of Agriculture

 

3.     How would we get benefit by learning Organic Farming?

A shift from ‘agriculture’ to ‘agri-business’ is being viewed as an essential pathway to revitalize Indian agriculture. While, the share of agriculture in total GDP is declining, it is still the single largest contributor to the GDP and plays a vital role in the overall socio-economic development of India. The share of agri-business will not and is bound to go up with the demand for value addition continuously increasing.

India's agricultural sector highly depends upon the monsoon season as heavy rainfall during the time leads to a rich harvest. But the entire year's agriculture cannot possibly depend upon only one season. Taking into account this fact, a second Green Revolution is likely to be formed to overcome such restrictions. An increase in the growth rate and irrigation area, improved water management, improving the soil quality, and diversifying into high value outputs, fruits, vegetables, herbs, flowers, medicinal plants, and biodiesel are also on the list of the services to be taken by the Green Revolution to improve the agriculture in India.

 In developing country like: India, Agri-business which links input supply, farm production, agro-processing and distribution network emerges as a viable option to resolve the problems of unemployment in rural sector. Thus, the prospects of agri-business rely more on off-farm sector of agriculture viz., agricultural input supply, agricultural processing and agricultural marketing distribution sectors. Therefore, it is directly related to industry and domestic market. India has a vast geographic spread, varied agro-climatic conditions, soils, which facilitates and promoting the production of variety of food and non-food crops.

 

OBJECTIVES OF THE STUDY:

The present study is based on the following objectives:

·         To study the overview opportunities for entrepreneurs that exists in agribusiness in India.

·         To examine the scope for agribusiness in India and reasons for low rate of success in agribusiness.

·         To study the challenges and growth opportunities for entrepreneurs in agribusiness.

·         To assess the strategy for promotion of successful enterprises in agriculture sector in India.

 

DEVELOPING ENTREPRENEURS IN AGRICULTURE CAN IMMENSELY BENEFIT INDIAN ECONOMY BY:

·         Reducing the burden on agriculture

·         Generating employment opportunities for rural youth

·         Reducing the need for migration from rural to urban areas, thereby reducing pressure on urban cities etc.

·         Increasing individual and national income

 

4.       WHAT WILL BE OUR KEY ROLE & BUSINESS STRATEGY FORMING ENTREPRENEURSHIP IN ORGANIC FARM BUSINESS?

Entrepreneurship in Organic Farm Business.

Now what is Entrepreneurship?

Entrepreneurship is a noun which means the activity of setting up a business or businesses, taking on financial risks in the hope of profit. "the new business opportunities have encouraged entrepreneurship on a grand scale"

In elaborately Entrepreneurship is the creation or extraction of value. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values than simply economic ones. More narrow definitions have described entrepreneurship as the process of designing, launching and running a new business, which is often initially a small business, or as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit. The people who create these businesses are often referred to as entrepreneurs. While definitions of entrepreneurship typically focus on the launching and running of businesses, due to the high risks involved in launching a start-up, a significant proportion of start-up businesses have to close due to "lack of funding, bad business decisions, government policies, an economic crisis, lack of market demand, or a combination of all of these. In the field of economics, the term entrepreneur is used for an entity which has the ability to translate inventions or technologies into products and services.  In this sense, entrepreneurship describes activities on the part of both established firms and new businesses.

Entrepreneurship is an act of being an entrepreneur, or "the owner or manager of a business enterprise who, by risk and initiative, attempts to make profits". Entrepreneurs act as managers and oversee the launch and growth of an enterprise. Entrepreneurship is the process by which either an individual or a team identifies a business opportunity and acquires and deploys the necessary resources required for its exploitation. Entrepreneurs create something new, something different—they change or transmute values. Regardless of the firm size, big or small, they can partake in entrepreneurship opportunities. The opportunity to become an entrepreneur requires four criteria. First, there must be opportunities or situations to recombine resources to generate profit. Second, entrepreneurship requires differences between people, such as preferential access to certain individuals or the ability to recognize information about opportunities. Third, taking on risk is a necessity. Fourth, the entrepreneurial process requires the organization of people and resources.

 According to the Austrian economists Joseph Schumpeter; an entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation. Entrepreneurship employs what Schumpeter called "the gale of creative destruction" to replace in whole or in part inferior innovations across markets and industries, simultaneously creating new products including new business models. In this way, creative destruction is largely responsible for the dynamism of industries and long-run economic growth.

The exploitation of entrepreneurial opportunities may include:

1. Developing a business plan
2. Hiring the human resources
3. Acquiring financial and material resources
4. Providing leadership
5. Being responsible for both the venture's success or failure
6. Risk aversion

Entrepreneurship may operate within an entrepreneurship ecosystem which often includes:

·         Government programs and services that promote entrepreneurship and support entrepreneurs and start-ups

·         Non-governmental organizations such as small-business associations and organizations that offer advice and mentoring to entrepreneurs (e.g. through entrepreneurship centres or websites)

·         Small-business advocacy organizations that lobby governments for increased support for entrepreneurship programs and more small business-friendly laws and regulations

·         Entrepreneurship resources and facilities (e.g. business incubators and seed accelerators)

·         Entrepreneurship education and training programs offered by schools, colleges and universities

·         Financing (e.g. bank loans, venture capital financing, angel investing and government and private foundation grants

 

TYPES OF ENTERPRISES:

While promoting entrepreneurship, we may consider different types of enterprises in agri-business:

·           Farm Level Producers: At the individual family level, each family is to be treated as an enterprise, to optimise the production by making best use of the technology, resources and demand in the market.

·           Service Providers: For optimising agriculture by every family enterprise, there are different types of services required at the village level. These include the input procurement and distribution, hiring of implements and equipment like tractors, seed drills, sprayers, harvesters, threshers, dryers and technical services such as installation of irrigation facilities, weed control, plant protection, harvesting, threshing, transportation, storage, etc. Similar opportunities exist in the livestock husbandry sector for providing breeding, vaccination, disease diagnostic and treatment services, apart from distribution of cattle feed, mineral mixture, forage seeds, etc.

·           Input Producers: There are many prosperous enterprises, which require critical inputs. Some such inputs which can be produced by the local entrepreneurs at the village level are bio fertilizers, bio pesticides, vermicompost, soil amendments, plants of different species of fruits, vegetables, ornamentals, root media for raising plants in pots, agricultural tools, irrigation accessories, production of cattle feed concentrate, mineral mixture and complete feed. There are good opportunities to support sericulture, fishery and poultry as well, through promotion of critical service facilities in rural areas.

·            Processing and Marketing of Farm Produce: Efficient management of post-production operations requires higher scale of technology as well as investment. Such enterprises can be handled by People’s Organisations, either in the form of cooperatives, service societies or joint stock companies. The most successful examples are the sugar cooperatives, dairy cooperatives and fruit growers’ cooperatives in many States. However, the success of such ventures is solely dependent on the integrity and competence of the leaders involved. Such ventures need good professional support for managing the activities as a competitive business and to compete well with other players in the market, particularly the retail traders and middlemen.

 SCOPE FOR AGRIBUSINESS IN INDIA:

·            India is endowed with varied ago-climate, which facilitates production of temperate, sub-tropical and tropical agricultural commodities.

·           There is growing demand for agricultural inputs like feed and fodder, inorganic fertilizers, bio-fertilizers.

·           Biotechnology applications in agriculture have vast scope in production of seed, bio-control agents, industrial harnessing of microbes for bakery products.

·           Export can be harnessed as a source of economic growth. As a signatory of World Trade Organization, India has vast potential to improve it present position in the World trade of agricultural commodities both raw and processed form. The products line include cereals, pulses, oilseeds and oils, oil meal, spices and condiments, fruits and vegetables, flowers, medicinal plants and essential oils, agricultural advisory services, agricultural tools and implements, meat, milk and milk products, fish and fish products, ornamental fish, forest by products etc.

·           At present processing is done at primary level only and the rising standard of living expands opportunities for secondary and tertiary processing of agricultural commodities.

·           The vast coastal line and internal water courses provides enormous opportunity for production of marine and inland fish and ornamental fish culture gaining popularity with increase in aesthetic value among the citizens of India.

·           The livestock wealth gives enormous scope for production of meat, milk and milk products, poultry products etc.

·           The forest resources can be utilized for production of by-products of forestry.

·            Beekeeping and apiary can be taken up on large scale in India.

·           Mushroom production for domestic consumption and export can be enhanced with improvement in the state of art of their production.

·           Organic farming has highest potential in India as the pesticide and inorganic fertilizer application are less in India compared to industrial nations of the world. The farmers can be encouraged and educated to switch over for organic farming.

·           There is wide scope for production and promotion of bio-pesticides and bio-control agents for protection of crops.

·           Seeds, hybrid and genetically modified crops, have the highest potential in India in the future, since the productivity of high yielding varieties have reached a plateau.

·           Micro-irrigation systems and labor saving farm equipments have good potential for the years to come due to declining groundwater level and labor scarcity for agricultural operations like weeding, transplanting and harvesting.

·           Production of vegetables and flowers under greenhouse conditions can be taken up to harness the export market.

·           Trained human resources in agriculture and allied sciences will take on agricultural extension system due to dwindling resources of state finance and downsizing the present government agricultural extension staff as consulting services.

·           The enhanced agricultural production throws open opportunities for employment in marketing, transport, cold storage and warehousing facilities, credit, insurance and logistic support services.

STRATEGY FOR PROMOTION OF SUCCESSFUL ENTERPRISES:

·           Considering the present problems faced by the entrepreneurs engaged in agri-business, it is necessary to create a congenial atmosphere in the field. Some of the important conditions necessary for successful agri-business are presented below:

·           There should be a unanimous option among government officials and farmers about the need and benefits of promoting self-employed youth or private entrepreneurs to facilitate the farmers to enhance agricultural production and profitability.

·           The Government should discontinue the practice of providing free services in those sectors where the work has been assigned to private entrepreneurs.

·           The technical skills and ability of the entrepreneurs should be evaluated to ensure high standards. There should be a monitoring agency to check the quality of the services and the charges collected from the farmers to avoid exploitation.

·           To popularise the services of the entrepreneurs, the Agricultural Extension Agencies and Farmers

·           Organisations should give wider publicity about the services available to the farmers. Such publicity can enhance the credibility of the services provided by the entrepreneurs.

·           The Government should encourage the entrepreneurs by introducing various concessions and incentives. Networks of entrepreneurs may be established to share their experiences. These networks can also establish a close link with Research Institutions and Universities to become acquainted with the latest research findings and seek solutions for their field problems.

 

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