Fostering Agro-Based Entrepreneurship: A Study of Rural Ecosystems in Southern Maharashtra

Abstract

This research is based on understanding of how agro-based entrepreneurship can be developed in the rural systems of Southern Maharashtra particularly in the Kolhapur, Sangli, and Satara districts. It seeks to know about the character of the agro-entrepreneurial activities, the position of the stakeholders in the ecosystem and the socio-economic aspects involved in the success and the challenges of these enterprises. Through the mixed-methods approach, the study was carried out among 60 agro-entrepreneurs, and 30 in-depth interviews with officials of Krishi Vigyan Kendras (KVKs), Farmer Producer Organizations (FPOs), and rural development NGOs were made. It was found that 33.3 percent of the entrepreneurs are in the business of agro-processing, 25 percent in dairy and 16.7 percent in organic farming. It was found that roughly 36.7 percent of the entrepreneurs turned to personal savings to provide start-up capital whereas only 20 percent utilized formal credit provided by banks. Moreover, lack of market access (72%) was considered to be a crucial hindrance by respondents, which was followed by the lack of appropriate training and opportunity of the development of skills (65%). Even though the limits were present, there was a consistent growth of revenues in 58 percent of the entrepreneurs once they had opened their businesses. The study reveals that the knowledge of increasing the availability of finance, segregated training, and promoting support institutions are critical to the development towards generating sustainable agro-based entrepreneurship. This study allows making recommendations to policymakers and development practitioners who want to stimulate rural development.