Why agribusiness fail

The sample size is small, limiting the generalization of findings and the recollection of events may fade with the passage of time, especially since most of the farmers did not keep written records. First, entrepreneurship and economic development, long held as a panacea for moving developing countries out of poverty, may require consistent government support.

Second, entrepreneurs venturing into business need to understand the particular challenges associated with a novel activity. Finally, entrepreneurs need to recognize that interconnectedness should not necessarily lead to the convergence of ideas and behavior. The study extends and contextualizes the literature on agricultural entrepreneurship and entrepreneurial failure. Besides, the study focuses on entrepreneurial failure in Sub-Saharan Africa, an under-researched setting.

Adobor, H. Report bugs here. Please share your general feedback. The things to consider while making the decision for choosing an appropriate location include; proximity to water sources, proximity to markets, access roads to the farm, soil fertility, pH levels, etc.

Check out this awesome post I wrote about Maize farming procedure and you will see the best site requirement for a bountiful harvest.

Also, Snail farming requires some special sites too, the same thing goes for fish farming. Location matters a lot to agribusinesses and failure to select a good site is the first step to failure in agriculture. Many agribusinesses fail at startup because the owners did not plan properly before starting out.

Planning is all about deciding in advance what to do, how to do it and when to do it so that maximum efficiency can be attained. Items involved in the planning are; financial breakdown of inputs, expansion plan, sources of fund, transportation, marketing strategy , management board etc.

Farmers plan when to by their inputs so that they can harvest at a favourable time of the year when they can sell at high prices. They make a lot of profit from selling in peak periods or festive periods because demand is high at those times. Not only that, but you will also miss business opportunities that should come to you through referrals. Some customers are just not fit to be in your circle. Those are bad eggs that must be laid off without apologies. Good customers will continue to encourage and give you all the support you need to scale up your business and make more money.

At the first taste of success, most agribusiness startups tend to scale up their business operation immediately. Before scaling your business, ensure you have increased your customer base to a point where your current capacity cannot handle the demand. Great Agribusiness experts challenge themselves to exceed the average, they work harder, they take more risks, they invest more, they partner with professions for advice and as a result, they earn more. Apart from post-harvest losses, pest and diseases are the 2 nd most devastating challenges faced by Agribusiness entrepreneurs.

Never wait until your crop has been infected or infested to take action. Remember that prevention has proven over time to be better than cure. If you must spray with chemicals to control the pests, always be ethical enough to use fully-registered, environmental-friendly chemicals and observe post-harvest interval, otherwise, you belong to jail.

My advice is always simple, start with conducting a soil analysis in the case of soil-based growing or nutrient analysis in the case of hydroponics, and only then can you determine what and how much fertilizer you need to apply. Blind fertilizer application is a waste of resources and will cause more harm to your crop than good. I was once guilty of this one. I thought that the only people with motor vehicles and established urban businesses were the only ones required to take out insurance.

Just like you would with your car. On the contrary, to succeed in agribusiness, you really have to invest enough time, money, and patience. Unfortunately, not so many of you are willing to put in the necessary effort.

But I have news for you. If you thought that the art of growing and selling food for money is cheap and easy, think again. But too many farmers think getting into this business simply means slapping some seeds in the soil and starting reaping big.

In addition to looking into a number of case studies of enterprises, a methodology has been elaborated and tested which help to assess these factors both qualitatively and partially quantitatively. A key finding of the study is that most in the end successful, at least surviving LSAEs in the sample had gone through extremely difficult times for one or another reason during which they could have easily collapsed.

Thus, it must be taken for granted that doing business in the agricultural sector is indeed a risky business even for larger entities, which are usually assumed to be more robust and rely on a larger financial buffer than small and medium ones. The reasons for failure and success are found across all proposed layers of analysis, finance being particularly critical to overcome crises provoked by other issues.