Approaches for Approaches for Commercialization of Post Commercialization of Post

Harvest TechnologiesHarvest Technologies

Dr. R.T. PatilDr. R.T. PatilFormer Director, CIPHET, LudhianaFormer Director, CIPHET, LudhianaChairman & ED, Benevole for PHT, Chairman & ED, Benevole for PHT,

BhopalBhopal

Agri businesses

• Most of the rural-agribusinesses are small businesses.

• The small business is business that is independently operated, is not dominant in its field.

• Ninety percent of the nation’s new jobs in the private sector are in small businesses.

Uniqueness

• Low risk

• All time demand

• Cost addition to highest extent

• Low skill

• Highly hygeinic

• Highest sanitary standards

• Great demand for health benefits

Entrepreneurship

• In the context of employment generation, the three terms i.e. entrepreneurship, self-employment and income generation are often used interchangeably.

• The functions of entrepreneurs suggest that all entrepreneurs are self-employed and income generating persons. But all self employed and income generating persons may not necessarily be entrepreneurs.

• The three, however, can be viewed as initial middle and terminal stages in entrepreneurship growth process.

Characteristics of Entrepreneur

Drive and Energy

Tremendous amount of personal energy and drive.

Self confidence

The successful entrepreneur has a high level of self confidence.

Long term involvement

He is a creator and builder of the business against promoter or fast buck artist.

Money as a Measure

The money is a way of measuring performance and not an end in itself.

Characteristics of EntrepreneurPersistent Problem Solving

He possesses intense level of determination and desire to overcome hurdles to solve a problem and complete the job.

Goal setting

He is very goal oriented, has an ability and commitment to set clear, realistic and attainable goals.

Moderate risk taking

Risk planner, takes moderate and calculated risk.

Characteristics of EntrepreneurDealing with failure

Entrepreneurs are not afraid of failure.

Use of Feedback

Demonstrate a capacity to seek and use feed back on their performance in order to take action and to improve.

Taking initiative and seeking personal responsibility

Independent and highly self-reliant innovators. They like to take the initiative to solve a problem of filling a vacuum where no leadership exists.

Characteristics of Entrepreneur• Use of resources

Successful entrepreneur knows when and how to seek outside as well as inside help in building their company.

• Competing against self imposed standards

Continuously engages in competition with himself to beat their last best performance

• Internal locus of control

The entrepreneur does not believe that success or failure of a new business venture depends upon luck or other external, personal uncontrollable factors.

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Characteristics of Entrepreneur• Tolerance to ambiguity and uncertainty

Entrepreneurs have special tolerance for ambiguous situations making decisions under conditions of uncertainty. In contrast to the professional manager, entrepreneurs are able to live with modest levels of uncertainty concerning job and career decisions and security and permanency are considerably lower on entrepreneurial hierarchy of preferences compared to his managerial counterpart.

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Entrepreneurship Development Stages

•Trade Acquaintance

•Skill Acquisition

•Management Practices

•Quality Control

•Process Understanding

Project Selection• Availability of market• Availability of raw materials• Availability of technology• Availability of skills• Government priority• Strategic fit• Ease of implementation• Risk of exposure• Profitability

– Cost/benefit– Critical success factor

Market Survey A market survey may have following

objectives:

• Present reliable, accurate and objective picture of conditions prevailing in the market.

• Forecasting market trends. • Reactions to the products• Establish the salability and marketability

of the products.

Market Survey The objective of the market survey should be answer the

following questions: • Size of the market?• Who are the customers?• What is the demand of the product and how it is being

fulfilled?• What are the factors limiting the size of the market?• What is the pattern of demand?• What are the prospects of the demand being increased or

decreased in future?• How much market share would you like to posses in terms of

volume and value?• What are the buying habits and motives of the buyer?• What aspects of the products will appeal to the customer

(Unique selling feature or unique selling proposition?• What are the competitors?• What are the past and futures trends?

Small business management A Practical element -knowing your business B Managerial element Planning – Setting objectives, Outlining procedures,

Assigning responsibilities Organizing-• arrange and assign work amongst the people • Dividing work so that it can be logically and comfortably

performed by individuals Leading -Motivate- Do as I do and not Do as I say Coordinating-• Integrate activities & avoid overlap of duties Controlling the activities –• See that every thing occurs as per plan • Check actual results against desired results and make

changes in work orders, methods or materials. 

Why agribusiness fail ?ManagementPeople do not plan to fail, they only fail to plan. If the business will not

work “on paper”, in the real world; even if the business works on paper, there is still no guarantee it will succeed.

Avoid the following pitfalls as you plan and manage your business:• Plunging in without first testing the waters on a small scale• Buying too much on credit• Misunderstanding how much time it will take to build a market• Going into business with little or no experience• Attempting to do too much business with too little capital• Not understanding business cycles• Lack of an effective marketing program• Spending too much time/money on nonproductive activities• Unnecessary capital investments made to minimize income taxes• Under pricing or overpricing goods or services• Extending credit too freely• Extending credit too rapidly

 

Why agribusiness fail ?

Strength of a business is in its people. undependable and unqualified employees can quickly destroy your business.

Do not attempt to support too many people from the business like your children into the business or helping failures.

Do not mistake the freedom of having your own business for the liberty to work only as you wish.

Why agribusiness fail ?Financial resources-Avoid the following as you manage your

financial resources. • Starting with too little capital• Starting with too much capital and being careless in its use.• Borrowing money without planning just how and when to pay

it back• Failing to keep complete, accurate records, which causes you

to drift into trouble without realizing it• Carrying out habits of personal extravagance into the

business• Forgetting about taxes, insurance and other costs of doing

business• Over dependence on collateral• Improper loan structuring due to an improper match of loan

repayment period and loan repayment ability• Failure to control living expenses because of withdrawing

more from the business than the business actually earns

Words of Advise

Failure is always a possibility. However, if we become afraid to fail we will not even try. Plan, study and research every possible angle-then give it your best.

AssistanceDIC=District Industries CentreSISI=Small Industries Service InstituteTCOs=Technical Consultancy OrganisationsSFCs=State Financial CorporationsNSIC=National Small Industries CorporationED Inst.=Entrepreneurship Development OrganisationsIDCs=Infrastructure Development CorporationsLA=Local Authorities like MunicipalitiesEPC(APEDA,MPEDA)=Export Promotion Council (Agriculture and Processed Food Export Development Authority, Marine Products Export Development Authority)

AssistanceArea of Assitance SourcesFor Selection of a Project SISI, DIC, TCOs, SFCsRegistration DICFinance Banks SFCs, NSICTechnical Guidance DIC, TCOs, ICAR & CSIR Institutes,

Universities, SISI, NSIC, Training ED Inst., SISI, TCOs, DICs,

ICAR & CSIR Institutes, Universities, NGOs

Infrastructure DIC, IDCs, LARaw Materials DICPlant & Machinery DIC, NSIC, SISIMarketing Information DIC, TCOs, EPC, (APEDA, MPEDA)

Support Institutions

Ministry of Food Processing Industries: The Key Player

Other Support Institutions and Their Roles ICAR and CSIR Research Institutes – The institutes provide technologies for food processing enterprises.National Small Industries Corporation Ltd – Provides integrated technology, marketing and financial support to small scale sector.Small Industries Development Organisation – Functions as the Nodal Development Agency for small industries.Export Credit Guarantee Corporation of India Limited – Covers the risk of exporting on credit. Provides a range of credit risk insurance covers. Provides information on creditworthiness/ credit ratings of overseas buyers and various countries.

Thanks !!!!