FOOD & AGRICULTURE ENTREPRENEURSHIP IMPERATIVE FOR AGRIBUSINESS DEVELOPMENT IN PAKISTAN Hammad Badar (Lecter. Oppo! Marketing ‘agibusness, Uni of Agu. Falselbad) & Dr. Khalid Mustafa rotessora cnasman, Depts of Market & Agibusiness, Un. of Ag Falabed) In developed world, the agiibusiness sector playsa pivotal role in rural develop: ment, in addressing social issues of pov erty reduction, ineconomic growth, and in environmental conservation. This sector provides inpuis and services needed for on-iarm and industrial production and markets for end consumption, Agribusinesses provieleimportant employ ment opportunities in rural arcas and contribute to the growth of larger private sector. ‘Agribusiness sector in Pakistan prima: vily Consists of small enterprises wherein ‘more than 90 percent of farmers are smail and medium. They rely on their family labourand small ural businesses for their livelihood, In Pakistan, ageibusiness sector is also gaining its roots in the rural areas of the Country due to commercialisation of agri- culture and changing consumer needs in urbanareas. Furthermore, thefastchang- Ing socio-economic scenario at the global level, trade Iiberalvation impacts on Pakistan's agricullure, significance of guick access to information and exposure to products, (echnologies and marketing opportunities have also necessitated the development and expansion of agribusiness sector on moclern and com mercial lines. Although share of agricul ture in the Gross Domestic Product (GDP) of the country is declining but itis sillthe single largest sector thal contributes 21 percent to GDP and employs 44 percent of the workforce. More than two-third population of Pat stan lives in rural areas and their lvel- hhood continues to revolve around agricul ure and allied zetivities. Like many devel- oping countries, poverty in Pakistan is largely a rutal phenomenon; therefore, i becomes imperative to develop agribusiness sector and provide work op- portunities in rural areas by strengthen: Ing agribusiness sector ‘The strongperformanceofsmaller busi- nesses, nnovationsin technology anew ‘opportunities in value-added agriculture are giving rise to new micro and small Dusinesses in rural areas not only world: wide but in Pakistan as wel Pakistan & Gulf Economist, March 16 ~ 22, 2008 ‘he foundation for the suecess of an agribusiness highly depends on efficient, clleetiveand trained entreprencur capable of running the small and micro rural e terprise, In this mnadern world, fostering agricultural entrepreneurship is now con- ‘sidered an importantaspect of agricultural, ‘economic and community development, I is generally accepted thai fural enterprise development can make significant contr! ‘bution (o sural GDP, employment, family income, food security, nutritional intake and diversity, and community welfare. Ruralenterprisesrelatingtoagribusiness ‘managed by modern and progressive en- ‘repreneurs can make special contribution to output, profitability, productivity and sustainability ofagriculture sector in Pak: sian. The agribusiness sector offers vast oppbrtunties for exploring new venture in agricultural supplies, farming and food se tor. This may attract many entrepreneurs towards this sector. However, certain pecularities and technicalities of agnibusinesses make Ita challenging ven: turcascompared oother businesses. Many budding entrepreneurs even ageicultural graduates generallly keep researvations in venturing into this sector. hisis largely dueto weak entrepreneur laleulture, increased preference orsettle- ment in urban areas, lack of factities im rural areas, non availabilities of training opportunities in business planning and developing marketing links, difficulties in accessing credit facilites and inadequate government support. Therural masses due lotheircertain socio-economicconstrainis, remaln stuck up with the traditional agr- cultural practices, The major part of our rural communities is iliterate and lack of resources fo start thelr own small agribusiness on moder business, Conse: quently, majority of the rural communi ties are (rapped in ‘grow-ent-grow’ cycle andremain deprived ofmany basicament: ties of modern life, “There isa need to impart entrepreneur: Jal skis in farmers in order that they can tap diversemarketing opportunitiesin their Jocal communities and in the global mar- els. Entrepreneurship is an incredible forceandengine ofgrawth, itismerely the assumption of risk and responsibility in designing and implementing a business strategy. Entrepreneurs are the people within communities who organize, man- ‘age, and measure the risks ofa business or enterprise and are essential to building the economies of urban and rural areas across the county.” Rural areas conventionally lost their young people to big eties in pursuance of some good opportunities. Najorty ofthese people can earn more incon in the rural areas wherethey have respureesand links provided entrepreneurial sills are incu: taied in them. The rural entrepreneurs create income opportunities not only for temselves but also or ther landless and deprived classes of razal communities Hence, thereare enormous spiraland:mul- tiplicalive effects of entrepreneurship in agiibusiness that ean contribute to im- proved living conditions and standards in ruralareas. Inthecase ofruralenterprises in particular, an additional benefits ce ation of incentives to stay in rural areas rather than migrate to cites It Is now the time to inculeate agribusiness entrepreneurship inorder to break vieious circle of ‘groweat-grow’ by renovingfinancial constraints faced by the stakeholders and accelerating adoption of new technologies by the prospective vestors. Given thatthe rural based miero- enterprises perform an Important role sn the egononsie development ofthe county, \tbecomes imperative to understand thelr entrepreneurial needs ip order ta ensure that these can thrive and grow nthe long nun Theagrbusinessentrepreneurshipcul- ture can thrive in Pakistan if Budding 70 ralenitepreneursare provided encourage ment arid incentives. Support strategies include entrepreneurial skill development and sensitization in sural ond peri-urban comnntunties by imparting education anc training fn business planning assisting start-ups with regulatory and technical problems; providing access to capital and rural praduct development, branding, pro- motion and marketing at national an international level through effective and efficient supply chain development. ‘Te inculeation of agribusiness entre- preneurship ean play a powerful role in {he economic well-being of rural and per urban communities ofPakistanbyemploy- + ing local resources and networks for the improvement and develepment of local products and rural business, Further- more, rural entrepreneurship may be highly instrumental in jobs ereation, in- come and wealth generation and im- provement in quality af lfeand well being of rural masses.