Entrepreneurship

farmers must  
overcome a range 
of barriers to 
entrepreneurship
Unsupportive legal and 
regulatory framework
Poor or absent 
infrastructure
Marketing constraints
Lack of financial support
Social barriers
Lack of support services 
and trained extension staff
Lack of training facilities
BarrierS to 
entrepreneurShip
Understanding entrepreneurship in farming 
17
particularly in remote rural areas. The public sector has 
an important role to play in servicing these areas and in 
ensuring  that  the  full  range  of  information,  advice  and 
support is available.
 
Marketing  constraints:  When  running  a  farm 
business,  production  must  always  be  linked  to  a 
market.  Access  to  markets  is  often  constrained  by  a 
number of factors. These include poor communications, 
infrastructure and marketing facilities, lack of reliable and 
timely market information, limited purchasing power and 
even negative attitudes of buyers. 
 
It is the responsibility of government to address 
these  barriers  and  to  provide  an  environment  that 
supports farm businesses. However, with or without this 
assistance, farmers can take the lead by recognising the 
qualities they possess, get training and think and act as 
entrepreneurs.
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Entrepreneurship in farming
CHallENgES
A  few  examples  of  how  farmer-entrepreneurs  have 
grown  their  farm  businesses  have  been  discussed. 
These  include  increasing  the  area  under  production 
and processing and packaging to add value. They also 
include handicrafts and agro- eco-tourism.
 
 
However  farmer-entrepreneurs  have  developed 
their farm businesses, they will face many challenges. 
Farmer-entrepreneurs need to be as ready as they can 
to meet these challenges. Some of the more significant 
challenges are:
•  Market-related risk
•  Access to finance and credit
•  Access to information
•  Low bargaining power
•  Vulnerability to economic shocks
•  Access to training and related challenges
market-related risk
Small-scale farmers live in an environment that is risky. 
The  risks  increase  when  they  produce  exclusively 
for  the  market.  These  farmers  face  difficult  choices  –