Entrepreneurship


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5-EntrepreneurshipInternLores

Farmer-entrepreneurs 
face many challenges: 
Market-related risk
Access to finance  
and credit
Access to information
Low bargaining power
Vulnerability to 
economic shocks
Access to training.
Farmers need to 
assess the risks 
involved when 
selecting markets to 
sell produce.


Figure 5
The farmer must weigh 
up the opportunities 
and risks and decide 
on the combination of 
markets to use
local markets
International 
markets
Understanding entrepreneurship in farming 
19
Access to credit is 
a major challenge
moneylenders do  
not service rural areas 
where farmers are
 
International  export  markets  and  local  markets 
represent  a  range  of  choices.  The  farmer  may  decide 
to sell all of his produce in local markets or all of it in 
international export markets. He may also decide to sell 
some on both markets. The farmer must weigh up the 
opportunities and risks and decide on the combination of 
markets to use. This is a key challenge for farmers.
 
Whichever  markets  they  use,  farmers  face 
substantial risks to reach them. Markets do not always 
function well; they are dynamic and diverse and they are 
not completely predictable.
 
But  increased  market  participation  does  offer 
many  opportunities.  The  farmer-entrepreneur  must 
weigh up the opportunities and risks and decide on the 
combination of markets to use. This is a key challenge 
for farmers.

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