Waruni Jayathunga
Gross domestic product (GDP) is an indicator that measures the total value of goods and services generated in a given country over time. Sri Lanka’s Gross Domestic Product (GDP) is a dynamic composite of three primary economic sectors: agriculture, industry, and services. Each sector contributes uniquely to national income, employment generation, and economic stability. Agricultural activities exhibited a notable resurgence, with a 2.6 % increase in value added in 2023, a significant turnaround from the 4.2 % contraction seen in 2022, primarily due to improved supply conditions, particularly fertilizer, other agrochemical inputs, and fuel (Central Bank Report, 2023).
Prof. A.L. Sandika, Director/CEO of the Hector Kobbekaduwa Agrarian Research and Training Institute, Ministry of Agriculture, Sri Lanka, highlighted that the agriculture sector accounts for nearly 25% of the country’s total employment. However, he noted that compared to the industry and services sectors, agricultural income remains relatively low in terms of efficiency.
Further, he stated that many farmers engaged in agriculture often struggle with low income, limited market access, and insufficient earnings to sustain their livelihoods. In contrast, those in the industry and services sectors rarely face such challenges. He attributed this disparity to low efficiency in land use, labor, and inputs within the agricultural sector, largely due to the continued reliance on traditional farming methods. To overcome these challenges, he emphasized the importance of adopting modern agricultural practices and entrepreneurial approaches, which could lead to higher efficiency and greater profitability in farming.
He said that most farmers rely on family labor or hired labor to cultivate their land and then sell their produce in traditional markets. However, transitioning from conventional farming to commercial agriculture requires a shift in mindset, where entrepreneurship plays a crucial role. Prof. A.L. Sandika emphasized that farmers must think strategically identifying what products have market demand, where to sell them, and how much to supply before establishing their agribusinesses. In this transformation, entrepreneurship becomes a key factor in ensuring a more efficient and profitable agricultural sector.
“As income rises, food demand continues to grow, leading to evolving consumer needs and preferences. Alongside these changes, advancements in technology, regulatory frameworks, social dynamics, economic conditions, and political landscapes also continue to shift. In this ever-changing environment, agripreneurship plays a crucial role in helping farmers adapt and thrive. By embracing innovation and entrepreneurial strategies, the agricultural sector can remain resilient and responsive to these transformations, ensuring sustainable growth and profitability”.
Why farmers are different from entrepreneurs?
Although farmers are engaged in production activities, they are not necessarily entrepreneurs. Entrepreneurship requires essential skills such as risk-taking, strategic market identification, and proactive decision-making. Unlike entrepreneurs, most farmers do not analyze market demand or identify consumer needs before production. Instead, they seek buyers only after harvesting their crops, making them ‘price takers’ with little control over pricing. In contrast, entrepreneurs shape the market, they set prices, create demand, and position their products strategically. Prof. A.L. Sandika emphasized that shifting from traditional farming to agripreneurship is key to gaining market power and ensuring profitability in agriculture.
“Advanced agricultural technologies, such as greenhouse farming, are now available in Sri Lanka, enabling farmers to produce high-quality crops efficiently and without major pest issues. With improved production methods, farmers can easily access identified markets, ensuring faster and more profitable sales. Prof. A.L. Sandika highlighted that such innovations create new opportunities for younger generations to engage in agripreneurship. Additionally, he noted that entrepreneurs operate independently, allowing them to manage and control external factors that influence their business. By strategically adapting to market conditions and leveraging technology, agripreneurs can build sustainable and profitable ventures”.
Empowering women through agripreneurship
“Women face unique challenges in entrepreneurship, especially in the industry and services sectors, where fulfilling customer demands on time is crucial. Their roles in household responsibilities, such as food preparation and childcare, often create difficulties in managing business activities effectively. However, agripreneurship provides a more flexible opportunity, allowing women to earn an income while balancing household duties. The challenge, however, is that many women agripreneurs struggle to scale their businesses since they manage both work and home responsibilities simultaneously. Despite this, gradual improvements and the right support systems can help them grow and achieve long-term success”,he stated.
Prof. A.L. Sandika highlighted that women can successfully engage in various agribusiness ventures, such as growing flowers, food preparation-related businesses, processing and selling dehydrated fruits, vegetables, as well as dairy farming and animal rearing. These activities provide flexibility and opportunities for financial independence. However, success in agripreneurship requires dedication, passion, risk-taking ability, creativity, motivation, self-confidence, and effective time management. He emphasized that with careful planning and strategic execution, women can turn these ventures into profitable and sustainable businesses, ensuring a steady income and long-term growth.
Furthermore, he explained that when examining unemployment rates, women represent the highest proportion of unemployed individuals. This highlights the importance of creating more opportunities for women in agripreneurship, enabling them to achieve financial independence and contribute to economic growth. He emphasized that starting an agriculture-related business requires neither a large initial investment nor specialized skills. In Sri Lanka, various training centers provide essential knowledge and support, making it easier especially for women to step into agribusiness. Moreover, compared to other sectors, women agripreneurs can identify market opportunities more easily, and competition remains relatively low. This makes agripreneurship a promising pathway to entrepreneurship, offering a viable solution to unemployment.
Accessible agribusiness opportunities for aspiring entrepreneurs
He mentioned that farmers can venture into agribusiness by focusing on agricultural input-related businesses. The key to success lies in identifying the primary crops being grown or the agricultural activities most commonly practiced, as well as understanding the inputs used in these processes. However, to succeed in this competitive market, farmers must build trust with consumers and offer products that stand out among existing options.
“Another type of agribusiness involves engaging in production processes, such as those within the agricultural production cycle. Additionally, animal husbandry and livestock production, including egg production, offer viable business opportunities. Furthermore, entrepreneurs can focus on collecting locally available products and then implementing effective marketing practices to reach wider markets”.
He highlighted that marketing strategies can be effectively applied when selling agricultural products, as marketing offers limitless opportunities. Additionally, during the harvest period, there is often a surplus of agricultural commodities, which can lead to price reductions. In such cases, farmers and entrepreneurs can consider value addition to the excess bulk, transforming the products into new forms that can reach consumers in innovative ways and another potential agribusiness opportunity lies in agricultural advocacy and providing loan-related services. However, to be effective in this area, a strong understanding of agriculture is essential, as it ensures that services are tailored to the specific needs of the agricultural sector.
Overcoming fear
Prof. A.L. Sandika emphasized that when starting a business, it is essential to overcome negative attitudes. He highlighted that self-confidence is the key to success and must be cultivated within oneself with the mindset of ‘I can do this. And also emphasized that factors such as gender, age, or religion do not affect a person’s ability to start a business. What truly matters are education level and personal interest. With the right knowledge and enthusiasm, anyone can successfully embark on an entrepreneurial journey.
He noted that, in Sri Lanka, there is evidence that middle-aged individuals tend to achieve greater success in entrepreneurial activities compared to younger generations. Additionally, while both men and women have succeeded in business, findings suggest that men may have a higher likelihood of success in the local context. However, he emphasized that one of the main reasons for business failure is ineffective marketing, highlighting the importance of proper market strategies for sustainable growth.
Marketing Strategies
He stated that three key factors influence the success of selling products in the market. The first is product quality, which plays a crucial role in attracting customers. The second is promotion, which can be done personally, through satisfied customers, or by hiring individuals etc. The third is value addition, as market competition continues to grow over time. To remain competitive, it is essential to continuously enhance and add value to products to meet evolving market demands.
The vital role of entrepreneurs in a nation’s growth and development
He highlighted that Small, Medium, and Micro-scale enterprises play a vital role in creating employment opportunities, contributing to job generation across the country. Additionally, these businesses produce essential goods and services for society. Entrepreneurs serve as the driving force of the economy, shouldering its growth and sustainability. Unlike others, they have the ability to maximize the use of resources such as land, labor, capital, water, and sunlight. In Sri Lanka, where a significant portion of land is used for agriculture, agripreneurs are uniquely positioned to enhance land efficiency by making the best use of natural resources. Furthermore, considering Sri Lanka’s geographical location, the country benefits from abundant sunlight, providing a valuable advantage for agricultural and entrepreneurial activities.
Finally, he emphasized that while jobs in the state or private sector often confine individuals to a limited scope, entrepreneurs face no such boundaries, they have the freedom to pursue their aspirations and reach their full potential. In society, people can be categorized based on how quickly they adopt new ideas, technologies, or trends, ranging from ‘innovators’ and ‘early adopters’ to the ‘early majority’, ‘late majority’, and ‘laggards’. Recognizing these different groups is essential in fostering entrepreneurship and encouraging more individuals to embrace innovation and growth.
Dilini Bhagya Weerasekara, Investigator, HARTI – DevPro Women Entrepreneurs Development Project
Source by: themorning.lk
