In this article we will discuss about:- 1. Meaning of Agripreneurship 2. Agripreneurship Development 3. Strengths for Promoting Agripreneurship 4. Supports and Incentives 5. Characteristics of Entrepreneurs 6. Need of Agriculture 7. Key Issues 8. Challenges for HR Skill Development in Transforming Agriculture to Agri-Business 9. Status of Present Day Education in Agriculture and Other Details.
Contents:
- Meaning of Agripreneurship
- Agripreneurship Development
- Strengths for Promoting Agripreneurship in India
- Supports and Incentives for Agripreneurship and Agri-Business Development
- Characteristics of Entrepreneurs Useful for Agripreneurship
- Need of Agriculture in Agri-Business
- Key Issues of Agriculture to Agri-Business
- Challenges for HR Skill Development in Transforming Agriculture to Agri-Business
- Status of Present Day Education in Agriculture
- Keys to Success in Agri-Business
- Training Support to Agripreneurship
1. Meaning of Agripreneurship:
Agripreneurship is defined as generally, sustainable, community- orientated, directly marketed agriculture. Sustainable agriculture denotes a holistic, systems-oriented approach to farming that focuses on the interrelationships of social, economic, and environmental processes.
1. Entrepreneurship is a process of change comprising the following three behavioral components:
a. The identification, evaluation and exploitation of an opportunity.
b. The management of a new or transformed organization so as to facilitate production and consumption of new goods and services.
c. The creation of value through successful exploitation of new idea (i.e. innovation).
2. Entrepreneurship is the dynamic process of creating incremental wealth. This wealth created by individuals who assume the major risks in terms of equity, time, and/or career commitment of providing value for some product or service. The product or service itself may or may not be new or unique but value must somehow be infused by the entrepreneur by securing and allocating the necessary skills and resources (Robert Ronstand).
2. Agripreneurship Development:
There are so many areas and sub-areas in agriculture. Within each area, enormous number of commodities is available. Based on the needs, agro-climatic conditions and available resources, agripreneurs can adopt some commodities and flourish on it. On other hand, there are uncounted jobless agriculture graduates looking for jobs.
The agriculture production is much less in comparison to many other countries. Therefore, it becomes essential to train these jobless agriculture graduates agri-business management and also provide finance to develop their own business in agriculture.
Agripreneurship is required because:
i. Increasing demand for organic/quality food both in India as well as abroad. Market growth of around 15-25 per cent per year.
ii. Competitive advantages for many primary production activities in agriculture. Rain-fed farming, tropical fruits and vegetables, livestock, animal husbandry, aquaculture, wild craft, etc. are produced through real low cost production methods.
iii. Private sector is willing to enter into agri-business at all levels of operations. Changing consumer demand and retail revolution has opened the doors for investment by private sector in agri-businesses like Reliance, Bharati, Pantaloons, Carrefour, etc.
iv. To reduce mall nutrition- The women and children of the country are malnourished. As Pt. Jawaharlal Nehru said that “You can tell the condition of a nation by looking at the status of its women”.
3. Supports and Incentives for Agripreneurship and Agri-Business Development:
There are a number of Government and Non-government agencies supporting agripreneurship development through public-private partnership.
Some of them are listed as follows:
I. The Ministry of Agriculture, Government of India has launched a unique programme to tap the expertise available in the large pool of agriculture graduates. Irrespective of them being fresh out of colleges or not, or whether currently employed or not, can setup Agri-clinic or Agri-business Centre to offer paid professional services for enhancement of agricultural production and income of farmers – The Ministry of Agriculture, Government of India.
II. “Small Farmers Agri-business Consortium (SFAC), New Delhi, the implementing agency is providing free start-up training to graduates in Agriculture, or any subject allied to Agriculture like Horticulture, Sericulture, Veterinary Sciences, Forestry, Dairy, Poultry Farming, Fisheries, etc. Once Agri-entrepreneurs setup their agriclinics and agribusiness centres, SFAC will also support in establishing linkages for sustainability” – Small Farmers Agri-business Consortium.
III. “National Institute of Agricultural Extension Management (NIAEM), Hyderabad, is coordinating two months training programme for agri-entrepreneurs through selected institutes across the country. The course comprises of entrepreneurship and business management, as well as skill improvement modules in the chosen areas of activity by the agri-entrepreneurs” – MANAGE, Hyderabad.
IV. “National Bank for Agriculture and Rural Development (NABARD), vide circular dated 23/07/2001, loans will be provided by banks for setting up agri-business centres. An individual can avail loan for the outer ceiling project cost of Rs. 10.00 lakhs and for joint/group projects, the ceiling is Rs. 50.00 lakhs, pro-rata” – NABARD.
V. The Krishi Vigyan Kendra (PIRENS) Babhaleshwar has been designated as a recognized training center by MANAGE, Hyderabad after taking cognizance of its innovative extension methodology and unique professionalism in providing vocational training for rural youths.
4. Characteristics of Entrepreneurs Useful for Agripreneurship:
The major characteristics of entrepreneurs that have been listed below by many commentators are useful for even agripreneurship:
i. Self-Confident and Multi-Skilled:
The person who can ‘make the product, market it and count the money, but above all they have the confidence that lets them move comfortably through unsheltered waters’.
ii. Confident:
In the face of difficulties and discouraging circumstances.
iii. Innovative Skills:
Not an ‘inventor’ in the traditional sense but one who is able to carve out a new niche in the market place, often invisible to others.
iv. Results-Orientated:
To make be successful requires the drive that only comes from setting goals and targets and getting pleasure from achieving them.
v. A Risk-Taker:
To succeed means taking measured risks. Often the successful entrepreneur exhibits an incremental approach to risk taking, at each stage exposing him/herself to only a limited, measured amount of personal risk and moving from one stage to another as each decision is proved.
vi. Total Commitment:
Hard work, energy and single-mindedness are essential elements in the entrepreneurial profile.
5. Need of Agriculture to Agri-Business:
The Ministry of Agriculture, Government of India, in association with NABARD has launched a unique programme to take better methods of farming to each and every farmer across the country. This programme aims to tap the expertise available in the large pool of Agriculture Graduates.
Irrespective of the time of graduation or the status of employment, one can set up one’s own Agriclinic or Agri-business center and offer extension services to innumerable farmers. Agri-business Centres would provide paid services for enhancement of agriculture production and income of farmers.
Centers would need to advise farmers on crop selection, best farm practices, post-harvest value-added options, key agricultural information [including perhaps even Internet-based weather forecast], price trends, market news, etc.
Initiated by Small Farmers’ Agri-business Consortium [SFAC] and co-ordinate by MANAGE, the training programme is being offered free for selected candidates for a period of two months and is funded by the Ministry of Agriculture. The Agriclinic was inaugurated at SASTRA in the month of October 2002. SASTRA’s Agriclinic has produced 50 per cent success stories as against the National average of 20 per cent.
6. Key Issues of Agriculture to Agri-Business:
The following issues are favorable to promote agripreneurship and agribusiness:
i. Policy Issues:
From absolute control and management of agriculture by Government, today it is being opened to public-private partnerships.
ii. Production Technology Issues:
From input/s oriented technology development for increasing production, today practice based value addition is being promoted.
iii. Quality and Certification Issues:
Demands from consumer/s for better quality have forced Government/s to establish regulatory mechanisms for quality certification.
iv. Logistics and Supply Chain Issues:
Modern retail formats requires efficient and dedicated supply chain and management facilities.
v. Human Resource Issues:
Lack of appropriately trained human resource is today considered as the biggest constraint in conversion of agriculture to agri-business or agripreneurship.
7. Challenges for HR Skill Development in Transforming Agriculture to Agri-Business:
It has been experienced that there is great rush for getting admission in coaching centres of Medical, Engineering and Civil Services in our country. If student get admission and succeeded to get a medical degree, he may either get suitable job or start his own clinic. Similarly engineering degree holder may either get some job or starts his own industry. The civil services are always more prestigious.
But being agriculture based country; there is no rush for agriculture education as in the case of Medical and Engineering. Agriculture graduates are generally unemployed and unable to start their own enterprise due to lack of proper training and education in agri-business. Therefore, agriculture institution managers need to modify their teaching plans towards job oriented courses specially agripreneurship development and agri-business.
It has been realized by other authors that:
i. Agriculture to agri-business potential has neither been recognized by the academic/s nor is being promoted as a career making opportunity among practitioners.
ii. Region-location specific agri-business opportunities needs to be identified and accordingly suitable human resource training programs should be launched.
iii. Learning processes for human resource to be engaged in agri-business enterprises should be designed to suit the candidates as per the job requirements.
iv. The focus to upgrade the skills of conventional practitioners of agriculture into agri-business human resource will provide the missing links.
8. Status of Present Day Education in Agriculture:
i. Education is based on scientific developments carried out during 1950s to till date. Mostly candidates are trained in input based technologies and extension works.
ii. Focus on external inputs for increasing productivity. The skills for enabling value addition in agriculture are not imparted.
iii. Focus on government jobs (extension and research). Managerial skills are not included in the curriculum/s.
iv. Absence of value addition and supply chain management subjects. Even trained candidates do not learn the skills to manage agri-business enterprises.
v. Accessible to careerists. For very long candidates joining these courses have mainly been attracted because of government jobs with total exclusion of practitioners wanting to create their own agri-business enterprises.
9. Keys to Success in Agri-Business:
There are no easy answers to agri-business success.
Farmers who have started successful agricultural ventures recommend the following points may be considered:
i. Choose something that you love to do. But it has good market and scope.
ii. Create a high quality produce.
iii. Start small and grow naturally. Don’t try to become milliner overnight,
iv. Make decisions based on good records.
v. Produce based on customers needs.
vi. Establish a loyal customer base and don’t fool them.
vii. Provide more than just a food, produce or service. Provide an experience.
viii. Get the whole family or partner’s involvement.
ix. Keep informed.
x. Plan for the future. Set goals for your business and establish a plan of action to achieve them.
10. Strategy and Support to Promote Agripreneurship Development:
India is an agriculture based economy having 329 million hectares of land area of which 143 million hectares is under cultivation. India’s population is 1027 million (531.3 million male and 495.7 million female) as on 1st March 2001. There are about 103 million farm families spread over 127 agro-climatic zones of the country with a variety of crops and animal production systems.
There are 29 states, 6 union territories, 602 districts and 5600 blocks in the country. The country have 41 State Agricultural Universities, 5 Deemed to be Universities, 47 Central Institutes, 31 NRCs, 5 National Beureaux, 558 KVKs, 120 Zonal Agriculture Research Stations, 10 Trainers Training Centers and 44 Agriculture Technology Information Centers.
There are about 30,000 scientists/researchers working in all these organizations. On other hand there is a vast pool of around 9900 agriculture graduates in the country who can support and boost agricultural production process if viable business opportunities are provided to them. Therefore, the country has a great strength to promote agripreneurship.
Agri Clinic and Agri Business Centers:
These are centers started by trained agriculture graduates which provide expert services and advice to farmers on cropping practices, technology dissemination, crop protection service, Market trends and prices of crops in markets and provide clinical services for plant and animal health which would enhance the productivity of crops and animals.
Agri business centers are those which provide inputs supply farm equipment on hire and such services. Agricultural graduates may choose from a range of potential areas. The scheme is open to agricultural graduates in subjects allied to agriculture like horticulture, sericulture, forestry, veterinary science, animal husbandry, dairy, poultry, Pisciculture, Agri engineering, food technology and other allied activities.
Under the scheme, the unemployed agricultural graduates are provided start up training at designated training centers. The successful candidates can later apply for startup loans for any specified venture. The project can be taken up by trained agri graduates either individually or on jointly/group basis. The outer ceiling for cost of project by an individual would be Rs. 10 lakh and for project by a group would be Rs. 50 lakh. The group may be of 5 of which one could be a management development and management.
Projects up to Rs. 10,000, no margin money but projects over 10,000, 15-25 per cent of project cost. There is no Collateral security for a loan unto Rs. 5.0 lakhs as per the latest RBI Circular for the Agricultural graduates who have successfully completed the Agri-clinics and Agri-business Training. The period of loan will vary between 5-10 years depending on the activities. The repayment period may include a grace period which is discretionary extending up to a maximum of two years.
11. Training Support to Agripreneurship:
As an integral part of the programme, specialized training is being provided to agricultural graduates interested in setting up such center. Training programmes are being launched in recognized training institutes throughout the country to prepare the professionals in entrepreneurship and agri-business ventures. The training is free for selected candidates for a period of two months in selected training institute.
Institutions Promoting Entrepreneurship and Agripreneurship:
Realizing the importance of agripreneurship development, a number of government and non-government organizations started promoting agripreneurship and educating agriculture graduates.
Some of them are listed below:
1. National Science and Technology Entrepreneurship Development Board:
The National Science and Technology Entrepreneurship Development Board (NSTEDB), established in 1982 by the Government of India under the aegis of Department of Science and Technology, is an institutional mechanism to help promote knowledge driven and technology intensive enterprises. The Board, having representations from socio-economic and scientific Ministries/Departments, aims to convert “job-seekers” into “job-generators” through Science and Technology (S and T) interventions.
Objectives:
1. To promote and develop high-end entrepreneurship for S and T manpower as well as self-employment by utilising S and T infrastructure and by using S and T methods.
2. To facilitate and conduct various informational services relating lo promotion of entrepreneurship.
3. To network agencies of the support system, academic institutions and Research and Development (R and D) organisations to foster entrepreneurship and self-employing using S and T with special focus on backward areas as well.
4. To act as a policy advisory body with regard to entrepreneurship.
2. The Entrepreneurship Development Institute of India:
The Entrepreneurship Development Institute of India (EDI), an autonomous body and not-for-profit institution, set up in 1983, is sponsored by apex financial institutions, namely the Industrial Development Bank of India (IDBI), IFCI Ltd. ICICI Ltd and State Bank of India (SBI). The Institute is registered under the Societies Registration Act 1860 and the Public Trust Act 1950. The Government of Gujarat pledged twenty-three acres of land on which stands the majestic and sprawling EDI campus.
EDI aims at:
i. Creating a multiplier effect on opportunities for self-employment,
ii. Augmenting the supply of competent entrepreneurs through training,
iii. Augmenting the supply of entrepreneur trainer-motivators,
iv. Participating in institution building efforts,
v. Inculcating the spirit of ‘Entrepreneurship’ in youth,
vi. Promoting micro enterprises at rural level,
vii. Developing and disseminating new knowledge and insights in entrepreneurial theory and practice through research,
viii. Facilitating corporate excellence through creating entrepreneurs (entrepreneurial managers),
ix. Improving managerial capabilities of small scale industries,
x. Sensitizing the support system to facilitate potential and existing entrepreneurs establish and manage their enterprises,
xi. Collaborating with similar organisations in India and other developing countries to accomplish the above objectives.
xii. The institute’s basic strategy to realise its mission has been to concentrate on some broad areas to achieve its objectives. The areas so selected have to satisfy the twin criteria of social relevance and the institute’s capability.
3. Wadhwani Centre for Entrepreneurship Development:
The Wadhwani Centre for Entrepreneurship Development (WCED) fosters and supports this entrepreneurial spirit. The vision of the WCED is to be a world renowned entrepreneurship centre by nurturing the spirit of enterprise in students and building a network to promote their efforts in the business environment.
The WCED also offers entrepreneurs opportunities to learn and to interact with the right sources to build global competitiveness. The Centre has taken up the task of supporting aspiring entrepreneurs throughout the cycle, from conceptualization to grounding of their projects.
i. WCED takes a holistic approach, covering training, research, mentoring and networking activities.
ii. The Centre provides opportunities for real time learning through interactions with some of the world’s best business leaders.
iii. The WCED is funded by the Wadhwani Foundation, a not-for-profit organisation set up by Romesh Wadhwani, the founder, Chairman, and CEO of Symphony Technology Group.
Not for profit voluntary organization was set up by Mr. Kamal M. Morarka in 1993 to create wealth for the nation through innovations in resource management and capacity building of the people. From being a successful grass-root level implementing agency for 10 years, today it is also being recognized as a leading resource organization offering solutions for sustainable agriculture in the world.
i. The Foundation is today also recognized as Training cum Resource Centre and is rated as a highly successful member of “Network of Agri-clinics and Agri-business Centres by Agricultural Graduates Scheme” of the Department of Agri. and Coop., Ministry of Agriculture being implemented by SFAC, New Delhi and MANAGE, Hyderabad.
ii. In last five years Morarka Foundation has assisted over 500 youths to become agripreneurs in India. Under Agri-Clinic and Agri-Business Centre promotion scheme of Ministry of Agriculture about 150 youths trained for two months nearly 70 percent of them have taken up entrepreneurial activities.
5. MANAGE:
The National Institute of Agricultural Extension Management, popularly known as MANAGE, is an apex national institute set up in 1987 as an autonomous society under the Ministry of Agriculture, Government of India. MANAGE is the Indian response to the challenges of management in a rapidly growing agricultural sector.
As a management institute, MANAGE has a mandate to assist the State Governments, the Government of India and other public sector organizations in effective management of their agricultural extension and other agricultural management systems. MANAGE is a nodal institute for conducting International Programmes and organizing study visits for foreign delegates in the above areas.
MANAGE offers its services in 5 streams.
They are:
1. Consultancy
2. Management Training
3. Management Education
4. Management Research
5. Information and documentation services
6. National Institute for Entrepreneurship and Small Business Development (NIESBUD)
The National Institute for Entrepreneurship and small Business Development (NIESBUD) was established in 1983 by the Ministry of Industry (now Ministry of Small Scale Industries), Govt. of India, as an apex body for coordinating and overseeing the activities of various institutions/agencies engaged in Entrepreneurship Development Particularly in the area of small industry and small business.
The Institute which is registered as a society under Govt. of India Societies Act (XXI of 1860) started functioning from 6th July, 1983. The policy, direction and guidance to the Institute is provided by its Governing Council whose Chairman is the Minister of SSI. The Executive Committee consisting of Secretary (Small Scale Industry and ARI) as its Chairman and Executive Director of the Institute as its Member Secretary executes the policies and Decisions of the Governing Council through its whole-time Executive Director.
Objectives:
1. To evolve standardised materials and processes for selection, training, support and sustenance of entrepreneurs, potential and existing.
2. To help/support and affiliate institutions/organisations in carrying out training and other entrepreneurship development related activities.
3. To serve as an apex national level resource institute for accelerating the process of entrepreneurship development ensuring its impact across the country and among all strata of the society.
4. To provide vital information and support to trainers, promoters and entrepreneurs by organising research and documentation relevant to entrepreneurship development.
5. To train trainers, promoters and consultants in various areas of entrepreneurship development.
6. To provide national/international forums for interaction and exchange of experiences helpful for policy formulation and modification at various levels.
7. To offer consultancy nationally/internationally for promotion of entrepreneurship and small business development.
8. To share internationally experience and expertise in entrepreneurship development.
9. To share experience and expertise in entrepreneurship development across National frontiers.