Understanding entrepreneurship in farming
23
low bargaining power
Small-scale entrepreneurial farmers often have low
bargaining power. Their individual level of production is
usually low and this limits their ability to negotiate with
suppliers. Limited bargaining power can force them to
buy inputs and equipment at higher prices. The same
applies to bargaining power in the market place. Limited
bargaining power often forces small-scale farmers to
accept lower prices for their produce. If they had greater
bargaining power, they would have a better chance to
determine market prices for their products.
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