Entrepreneurship

The farm business 
matures as 
the farmer’s 
entrepreneurial  
skills mature 
Figure 3
farm enterprises 
generally move 
through these five 
stages
Five stages of farm enterprise development
Establishment
Pre-
establishment
Survival
Rapid 
growth
maturity 
(and possible 
decline)
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Understanding entrepreneurship in farming 
13
 
During the rapid growth stage the farmer is likely 
to  have  to  delegate  some  managerial  responsibilities. 
He will need to change the way communication is done, 
and to make some tasks routine. To do this, the farmer 
will need even broader managerial skills. As the scope 
of the farm business increases, the entrepreneurial and 
managerial skills of the farmer must also increase. 
 
Sometimes  a  small-scale  farmer  may  prefer 
to  remain  small.  When  his  farm  reaches  the  size  that 
satisfies his requirements and purpose for farming, he 
may prefer to keep the business at that level. But making 
this decision must not be because of a lack of knowledge, 
skill or opportunity.