Development of Agripreneurship
Development of Agripreneurship
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ABSTRACT:
India is an agrarian country with a vast availability of land for agricultural activities and huge
population is depending on the agriculture and its allied businesses. The Agripreneurship is the
concept of the Entrepreneurship in agricultural sector, brought in by the people with innovative
ideas to develop the existing practices for a better productivity. This study discusses about the
concept of Agripreneurship, challenges these Agripreneures are facing for their proper
establishment and future prospects of these entrepreneurs to flourish and give a tremendous
growth in the agricultural sector by overcoming all the problems currently faced by the people
in agricultural sector as it has the potential to overcome problems like diversifying income,
generating growth, greater employment, new technology and optimum utilization of the
resources available. There has been inclusion about various schemes available for their
promotion and finally on how Indian agricultural sector can take benefit from these
agripreneures.
1. INTRODUCTION
This is where the concept of Agripreneures comes into the picture. To promote
economic development in post-liberalization-reform in India, central and state
Governments has been formulating growth and development policies that encourages
entrepreneurship and self-employment (Verma et al., 2019). To improve the effectiveness
of these policies, it is important to understand how regional factors influence an individual's
decision in shifting from employment to being self-employed (In, For, & Development,
2016). The occupational transition from salaried employment to self-employment is an
important in developed economies as at a particular stage their GDP stops growing but
these entrepreneurs can still make further development by exploring hidden opportunities
and contribute this to GDP. To make a real economic difference a substantial number of
individuals must shift from employment to self-employment (Verma et al., 2019). India is
still considered to be an agrarian economy, which implies us to safeguard that name. This
can only be achieved by proper development in that Agricultural sector. India’s agricultural
produce from a hectare of land is just half of that of other countries (Dayakar Rao et al.,
2010). This demands the introduction of a modern way of farming which is sustainable and
good for the economy. This actually needs new ideas and innovation as well as more funds
for these entrepreneurs as this can only be achieved from these Agripreneures with their
enthusiasm to bring in new technology & innovative ideas to grab the market as soon as
possible (Uplaonkar & Biradar, 2015).
1.1.1. Agripreneurship
1.1.2. Agripreneure
This states about the considering every individual family as a venture and equipping
them proper technology and finance to enhance their production by best utilizing the
resources.
There are different types of service providing enterprise and their needs are very
essential in rural areas. The common services like input and financial borrowing, hiring
various equipment like tractors, threshers, sprayers, seed driller, harvester, etc. in
different stages of agriculture and other scientific services like irrigation facility, weed
curb, plant security, yielding, warehouse, etc. similarly there are opportunities which
exist in livestock husbandry sector like breeding, immunizing, diagnosing and
treatment of diseases, etc.
There is good demand for the input producers especially in case of agriculture. Input
like mineral amendment in soil, bio fertilizers, vermicompost, manure, biopesticides,
seeds for various fruit and vegetable species, irrigation accessories, mineral mixture,
etc.
2. LITERATURE REVIEWS
India being a country where there is a huge dependency on agricultural produce and
it almost contributes approx. 25% to the GDP of the country (Verma et al., 2019). Still the
country is lagging behind in promotion and development of the Agricultural Sector. The
statistics shows the decline in productivity and reach of government incentives toward the
farmers (reduced investment) leading them to face a lot of problems for survival. After the
1990s agricultural sector had been facing a lot of problems due to improper regulation,
disinvestment, over-dependence, old technology, and other natural reasons (Merriott,
2016).
Different authors from different study have stated the opportunities for the
entrepreneurs entering into the agriculture sector and this is the only way to pull out the
hidden resources which are untapped till date in the rural areas and use them optimally
which will contribute directly for the growth of the nation (Verma et al., 2019). During the
1950-51 agricultural sector contributed nearly 51% of the total GDP of the county but now
it fell way long due to negligence and increasing focus towards manufacturing and service
sectors (Verma et al., 2019).
Agripreneures can have their business ideas spread over various activities like in
the production of raw materials for agriculture, fertilizer & manure, entering into organic
farming, marketing of agricultural produce, making sales on behalf of the farmers at a good
price, financing the farmers during an emergency and many more (Merriott, 2016; Verma
et al., 2019).
The focus of this review is to bring out the needs and potentials of such
entrepreneurs who can change the whole sector into a completely different one. The
government is also giving a lot of importance in promotion of innovation in agricultural
sector and welcoming entrepreneurs to start up new firms. Already there had been 60 Agri
export zones set-up where these firms can operate with tax benefits and generate good
revenues. These firms are usually given tax exemptions and better subsidies for the raw
materials they require (Weekly & Weekly, 2019).
One of the articles reviewed discussed about the tribal youth who has good potential
in doing agriculture but the lack of opportunities is depriving their potential skills. It is also
known that 10% of the area of the country is under the hands of the tribal group which can
be well utilized for various types of farming like substance and normal farming purposes.
This will uplift their position economically. Author things that agripreneures can play a
vital role in giving them better opportunities for development (Dash & Mahra, 2018).
The other article which is "Review on organic farming as a potential sector for
agripreneurship development" revolves around the same tribal youth who has a great
potential to flourish in agricultural sector. This study took the Case of Odisha state where
agriculture was not so effective and the sustainability was poor and this was leading to
underemployment of resources as well as unemployment in the state. Author wants the
tribal youth to become the new entrepreneur of the place and become self-employed and
even develop the other people in and around their area with possible opportunities given to
them (Dash & Amardeep 2018).
The skills required by the farmers and the people from agricultural sector is very
essential in better produce with use of new technologies. In authors context, they mentioned
that the development of the Indian economy can be done with development to the
agricultural sector only. They have said about various skillsets need to be possessed by
farmers to develop in their field as well as it will reduce the poverty in the economy. The
study took the case of Uttar Pradesh for analysis of the problems faced by agripreneures
and discussed various ways to solve the problems figured out by them (Tripathi, 2015).
In this review article authors critically discussed on the aspect of the need for
agripreneurship promotion in Indian agricultural sector and the challenges to do so. It is
similar to the article earlier reviewed which was by Mr. Bairwa (Bairwa, 2014). There has
been an analysis of the yield of various crops that affects the farmers decision on that to
produce depending on its market value and cost involved. Further it is discussed on how
there can be developing with proper implementation of Agripreneurship in this sector (Veni
& Lakshmi, 2018).
This article is based on the various possible entrepreneurial business ideas in the
form of different types of enterprises in agricultural sector. In this article unlike other
review there are few points mentioning various institutions which can help these
agripreneures for further development in their field and various schemes for agri-business
development by formulated by the government. Similar to other articles author has
highlighted the barriers for these enterprises in flourishing and possible problems which
can be a major obstacle for them (Uplaonkar & Biradar, 2015).
5. RESEARCH METHODOLOGY
• What is Agripreneurship?
• How can this be helpful to the rural and tribal population?
• Need for this concept in India.
The research will be a study of the available articles and literature on the concept
of Agripreneurship, which will be the base of the whole research.
6. CHALLENGES
There are various challenges faced by the Agripreneures in the implementation of their
plans to develop either new business which is allied to the sector or any other support
businesses. The basic problem can be the literacy level of the farmers or rural people. This
acts as root cause for majority of challenges discussed below. Similarly, there are various
other social factors too which acts as challenges to these people to overcome.
Most of the articles talks about the low productivity in the agricultural sector as a major
challenge due to factors like an uncertain monsoon, poor fertility of the land, poor quality
seeds and raw inputs for the farming (Verma et al., 2019). In a way, Agripreneures can
improve productivity but still, people have the fact in mind that agriculture is not profitable
as the productivity is poor which make people to shift from agriculture rather than thinking
how to increase productivity. These entrepreneurs can only be successful if the farmers keep
doing farming and produce in a good quantity and quality for these agri-businesses to develop.
The infrastructure available in the Indian Agricultural sector is almost outdated, only a
few big farmers can afford these new technologies whereas the poor and small-scale farmers
still unable to access these technologies which s trending in the market for better productivity
and ease of work (Verma et al., 2019). Agripreneures have to invest a huge amount of money
in getting such technology for implementation in farming as these are not readily available
there. Even though various developmental activities are going on, the development of
technologies is very slow as compared to other developed nations like the USA and other
European countries. Entrepreneurs have to face problems with the communication technology
and road connectivity infrastructure as these are poor in rural areas.
This is the biggest challenge as compared to other problems because there is already
very less skilled and literate people in the rural sector, even if they migrate to the urban areas
there will be no hope for the development of the rural areas. Localities know a problem better
than any outsider. If they want to overcome those problems they can put in new ideas to solve
that social issue as per their needs (Singh & Pravesh, 2017)(Verma et al., 2019). While an
outsider still thinks about making profits in one way and may not understand the actual
problem of that place. Hence, promoting the rural people in becoming entrepreneurs of their
own is much better solution than others coming and conducting their business because of the
benefit factor.
This is similar to the previous point as only talented people can become entrepreneurs
by coming up with new business and having the ability to manage it. Most of the authors
stated that the farmers don’t have much of entrepreneurial ability in setting up and
management of such business models. This is the problem because of which there is no new
businesses coming up in agricultural sector. There should be effective awareness and
consultation organisations set-up in order to develop these people and bring out the hidden
entrepreneur out from them (Veni & Lakshmi, 2018).
There are various agricultural allied services in the market to assist the farmers in every
aspect such as production of pesticides, warehousing of the produce, transportation, value
addition or processing the produce and sell, export agencies, etc. (Singh & Pravesh, 2017).
As the agricultural produce is not that profitable, interest in these businesses also reduces as
both go hand in hand, without agricultural produce no use of transportation and warehousing,
none of the service firms can function. Author Mr. Verma has mentioned that as there are
various subsidies and free services given by the government, some of the local service
providers aren't getting much customers for their business and have to close down which is a
major demotivation for them. So, if the government rather than giving such a subsidy it can
motivate the local people to set up a business of their own and deliver services in their local
places. Which further develops the whole sector than only farming or only business (Verma
et al., 2019).
There are various policies formulated and promoted but still, the execution of these
policies is still a big question mark. Usually, these aids never reach most of the rural
population due to corruption, bureaucracy and various other reasons like illiteracy among the
rural population cause a lack of knowledge regarding these promotional policies and benefits
extended by the government leading to benefits being unclaimed (Veni & Lakshmi, 2018;
Verma et al., 2019). Moreover, in a way government promotion in this sector is comparatively
less than other sectors like manufacturing and service industries. Thus, these Agripreneures
face problems in bringing their ideas into reality.
7. FINDINGS
The concept of agripreneurship has been discussed in depth with its types and needs,
challenges they face, etc. The Common finding from this study is that all the authors have
been mentioning the needs, importance and how it will help in the development of the Indian
economy but most of the articles didn’t discuss on current situation and how to overcome.
The articles particularly discuss about the development among the farmers who have
entrepreneurial skills and this motivates them to take a step above in their own development
rather than keep on practicing the same unprofitable farming activities with outdated
techniques and technology and depending on government for finance and other allied support
services. The important question arising from the study is that "What the government is doing
to promote these Agripreneures?”. There is only one article which actually mentioned various
schemes available to these entrepreneurs in order to assist them in setting up new businesses.
This is very essential as for any start-up because without the help of the government it is very
difficult to finance and implementing their ideas in this sector. The main problem which is
discussed is the migration of rural talent to urban areas for their livelihood. This not only
makes their life difficult but even leads to no development in the rural areas as there is no
innovation coming into the sector and continuing the dependency on the obsolete technology
and finally, no one to utilize the funds given by the government and put into productive use.
As mentioned in one of the articles the development or promotional policies should focus on
the development of such people who can actually have an impact in the society by putting
their skills in various activities, they take up which leads to economic change. It is also found
that literacy plays a major role in basic things like knowing and availing the benefits given
by the government. So, the campaigns set up for literacy on various policies can go handy for
these people in understanding the efforts taken by the government and this will help them in
availing these and fulfil the ultimate objective.
RBI began NABARD in July 1982 to give full attention to the rural sector in the areas
of agriculture, small-scale and cottage industries and agribusiness. Since NABARD
was formed, it has the responsibility to manage all RBI's rural development and agro
based activities.
The concept of self-governance has gone down through village markets and fairs to the
level of marketing of village produce. The Panchayat mandi concept is to reduce the
influence of middlemen and traders. This is only possible if the Zella Panchayat works
effectively in conjunction with state marketing boards and APMC (Agriculture
generating market committee).
These are set up by the government to regulate the prices of the agricultural produce on
a frequent basis. It even regulates the markets for food crops and oil seeds to make the
farmers avail proper benefit.
An Agro-based country like India needs training centres across the country with modern
facilities. India's government is providing State aid for the establishment of such
training facilities. NCOSAMB is the body responsible for organizing these training
programmes.
The state trading corporation of India Ltd. is the leading international trading house
owned by Indian government which was founded in 1956. The corporation has gained
extensive expertise in managing bulk international trade.
There are various other such schemes like Agri-export zones, Agri-Udaan, MSME in
agriculture, women empowerment through SHG’s, dairy Entrepreneurship
development scheme and various other incentives by the ministry of food processing
industries (MFPI), National Horticulture Board, etc.
The articles talk about various challenges faced by the entrepreneurs, farmers,
and social factors involving unsustainable agricultural practices and various other concepts
relating to it. In reality no one has ever studied about the actual impact these entrepreneurs
can bring this to the agricultural sector. There should be a study by taking a sample village
or area with poor infrastructure but having good potential for development and promote
these agripreneures to bring in their ideas and implement it. The study should be an
overview of the impacts on the agricultural output and revenue earned pre and post the
agripreneures coming into sector and how these agripreneures contributing to economic
development. The data available regarding entrepreneurial growth in agricultural and allied
sectors are very minimal and outdated as there is no record on how the incentives by the
government are being used. So, there should be a record of such key factors as they are
very much necessary for further study and motivating people in other places of the country
stating the benefits and how it has changed fate of some villages.
REFERENCES
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Development as a Tool to Upliftment of Agriculture. 4(3), 1–4.
Dash, D., & Mahra, G. S. (2018). Generating livelihood for tribal youth through
agripreneurship development : Prospects , retrospect , constraints and strategies. 7(5),
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Dayakar Rao, B., Patil, J. V, Rajendraprasad, M. P., Reddy, K. N., Devi, K., Sriharsha, B., &
Kachui, N. (2010). Impact of Innovations in Value Chain on Sorghum Farmers.
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In, I., For, E., & Development, A. (2016). INNOVATION IN AGRICULTURAL RESEARCH
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