Entrepreneurship

full Employment:  The  business  is  expanded  until 
the  family  members  are  fully  employed.  At  this  point 
expansion stops and is maintained at this level as long 
as everyone is fully engaged. Full-time hired labour to 
expand further is not considered an option. 
Vertical and horizontal 
integration are both 
necessary to link to 
modern value chains.
Farmers will need 
to choose the most 
appropriate business 
stabilising strategies

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Entrepreneurial responses to change 
43
Some may decide 
to wait until the 
environment has 
improved before 
expanding...
... but if farmers wait 
too long they run the 
risk of missing the 
opportunity. 
adequate Income:  The  business  is  expanded  until  it 
generates adequate income for the farmer. However, if 
adequate income levels are not maintained over time, the 
business may expand until the desired level of income is 
reached. 
Profit:  After  a  period  of  expansion,  the  farmer  may 
decide  to  sacrifice  future  growth  by  using  the  income 
generated for consumption purposes and not reinvesting 
profits into the business. 
Wait and See:  A farmer might think the current economic 
and business environment is too uncertain for expansion 
at  this  time  and  decide  to  wait  until  the  environment 
has improved before expanding. If this is not managed 
correctly, a farmer may run the risk of waiting too long 
and missing an opportunity for expansion.
*  *  *

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44                                                  
Entrepreneurship in farming
Farmers investing in new technologies to harvest rice more efficiently and reduce 
post harvest losses – The Philippines
©F
AO/ 
Jon Spaull/ 21271
There is considerable potential for entrepreneurship among women – a farmer 
specializing in floriculture growing – India
©F
AO/Jon Spaull/ 
23164
Entrepreneurial 
farmers need to 
manage their farms 
in a profitable and 
sustainable way 
with the flexibility 
to adapt to a 
rapidly changing 
agricultural 
environment 
Farm planning is an important entrepreneurial function: an extension worker 
guiding a farmer to plan his cropping pattern – Guyana
©IF
AD/ 
Horst W
agner/101
15_C20s.jpg
 

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Entrepreneurial responses to change 
45
This calls for 
better day to day 
management of 
farm operations  
as well as having  
a broader vision  
of the future  
of their farm 
business
Longer term management strategies sometimes include adding value to the 
enterprise – Central African Republic
©F
AO/Riccardo Gangale/ 24752_7324
Diversification into new products often increases income and reduces costs – 
use of driers in Uganda
©F
AO/ 
Roberto Faidutti/ 19323
Specialization involves meeting the demands of specific markets – a farmer 
specializing in house plants – India
©F
AO/ 
I. De Borhegyi/ 13435

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