Lesson 2: Concept & Need for Entrepreneurial Development

1. Concept of Entrepreneurial Development

Entrepreneurial Development (ED) refers to the process of enhancing entrepreneurial skills, knowledge, and mindset through structured training, mentoring, and institutional support to help individuals start, operate, and grow successful enterprises.

In agriculture, entrepreneurial development aims to:

• Equip farmers and rural youth with business-oriented thinking.

• Improve their ability to identify, evaluate, and exploit opportunities in the agri-value chain.

• Provide them with technical, managerial, and financial skills necessary for enterprise success.

Key elements of ED in agriculture:

1. Awareness creation about entrepreneurial opportunities.

2. Skill development in production, processing, and marketing.

3. Facilitating access to finance, technology, and markets.

4. Developing a positive entrepreneurial attitude.

2. Need for Entrepreneurial Development

Agriculture in India faces challenges such as fluctuating prices, post-harvest losses, low value addition, and underemployment. Entrepreneurial development addresses these by:

• Encouraging diversification into high-value crops, livestock, processing, and exports.

• Reducing rural unemployment through agribusiness ventures.

• Increasing farmers’ incomes by linking them to markets and value chains.

• Promoting innovation and adoption of advanced technologies.

• Building resilience against risks like climate change and market volatility.

  Example: A farmer trained in mushroom cultivation and direct online marketing can earn 2–3 times more than selling raw produce through traditional channels.

3. Importance of Entrepreneurial Development

Entrepreneurial development plays a key role in:

1. Economic Growth – By creating new agribusinesses, ED boosts rural economies.

2. Employment Generation – Self-employment and job creation for rural youth.

3. Rural Industrialization – Promotes food processing units, packaging industries, and service centers in villages.

4. Value Addition – Encourages processing and branding, increasing product value.

5. Export Promotion – Helps farmers meet international quality standards.

6. Technological Advancement – Motivates adoption of innovations like precision farming, drones, and bio-fertilizers.

7. Social Development – Enhances skills, confidence, and decision-making ability among rural communities.

4. Evolution of Entrepreneurship

• Pre-Independence: Agriculture was subsistence-oriented; surplus, if any, was sold in local markets. Entrepreneurship was limited to traders and moneylenders.

• Post-Independence (1950–1970): Green Revolution introduced high-yield varieties and mechanization, paving the way for commercial farming.

• 1980–1990: Emergence of dairy cooperatives (Amul model), food processing units, and input retail shops.

• Post-1991 LPG Reforms: Global market access, contract farming, and agribusiness diversification.

• Present Era: ICT-enabled agriculture, e-markets, start-up culture, FPO-led enterprises, and export-oriented agribusinesses.

5. Objectives of Entrepreneurial Activities

• Generate income and improve livelihoods.

• Create value-added products for better market prices.

• Reduce post-harvest losses through processing and storage.

• Provide employment in rural areas.

• Introduce innovations for better productivity.

• Promote sustainable and climate-resilient farming systems.

6. Types of Entrepreneurs

1. Innovative Entrepreneurs – Introduce new crops, farming systems, or marketing methods (e.g., hydroponic vegetable farming).

2. Imitative Entrepreneurs – Adopt successful agribusiness models from other regions.

3. Fabian Entrepreneurs – Resist change but adopt innovations when survival demands.

4. Drone Entrepreneurs – Avoid change and stick to traditional practices (least growth potential).

5. Social Entrepreneurs – Focus on improving community welfare through collective farming, FPOs, or agri-cooperatives.

7. Functions of Agripreneurs

• Idea Generation – Identify viable crops, products, or services.

• Resource Mobilization – Arrange finance, labor, and inputs.

• Production Management – Ensure quality and efficiency in production.

• Marketing – Promote and sell products to profitable markets.

• Risk Management – Minimize effects of price fluctuations, pests, or weather changes.

• Innovation – Introduce new technologies or value-added processes.

• Networking – Collaborate with suppliers, buyers, and support institutions.

8. Process of Entrepreneurial Development

1. Identifying potential entrepreneurs.

2. Training in skills, business planning, and technology.

3. Providing financial and infrastructure support.

4. Establishing market linkages.

5. Monitoring and mentoring during business operation.