Caribbean Agrifood Business Session n°7

Entrepreneurial skills needed for businesses to succeed and expand

The agricultural and agrifood sector remains a key economic driver of Caribbean countries. The sector is dominated by businesses which are predominantly micro, small and medium entreprises (MSMEs).

In a complex and dynamic environment, it is crucial that entrepreneurs in the agrifood sector are supported to create, maintain and grow a profitable business.

Entrepreneurs and business owners are agents of change, they undertake innovations, finance risks and develop a business. Considering that the skills they need are constantly evolving, it is of crucial importance to promote and nurture an entrepreneurial spirit and support capacity development.

Entrepreneurs are part of a wider ecosystem essential in the value chain to move products to the market, which includes farmers, suppliers, traders, transporters, processors… Each one needs to be an entrepreneur and promote a market business approach contributing to profitable businesses.

Entrepreneurs should be encouraged to promote sustainable production and trade and contribute to the green economy.

Diversification within the agricultural sector through increased processing is necessary for local small and medium size companies to develop high value-added, quality and specialty niche products.

Post-harvest losses and food waste along the chain can be minimised with training in improved handling and storage hygiene, and recycling.

Ensuring food quality and safety is needed in supplying any market. Companies need to differentiate products through quality and safety. Agricultural producers are becoming more ambitious in seeking premiums for their goods and increasingly adopting social and environmental certifications.

Even if standards are stringent, their adoption and implementation can generate greater income for producers and satisfaction among consumers and entrepreneurs must know them. This applies to niche markets, such as sustainability in production, organic or fair-trade food products.

Promoting upscale and innovations requires technical and financial skills.

However, we need to acknowledge that the environment is not always supportive and that entrepreneurs face some key challenges such as poor infrastructure (i.e. roads, ports, marketing and storage facilities, communications, electricity), low level of investment in agriculture from governments and donors, unsupportive laws and regulations (i.e., land tenure, business and tax laws, complex business regulations, bureaucratic procedures…), lack of finance, education and training which doesn’t meet the business needs, low extension services and lack of reliable market information (on production, markets, prices, regulations), limited bargaining power which affects negotiation with suppliers, higher prices for inputs and lower prices for the products.