Chester Moreover, it contributes to research and

Chester W.S
Senerez                                                                                                       
AGRIB 48

BSA (Anscie) IV

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            Starting an enterprise can be
exciting and dreadful at the same time. Exciting, due to the fact the
enterprise or business entity creates employment in the society, thus it makes
feel the entrepreneur/s need by. Moreover, it contributes to research and
development; but most importantly, there is an easy accessibility of money in
the business world, that is why people normally engaged themselves with. As it
was mentioned earlier as well, starting an enterprise is also dreadful because
it pertains to myriads of mysteries why businesses normally fail. Some
entrepreneurs start one successful business after one another while some often
fail to succeed. The worst scenario about a failing business entity is that the
entrepreneurs are not aware of it happening until it is often too late to save
the business. It really makes sense due to the fact if the entrepreneurs really
knew they were doing wrong, they might have been saved the enterprise to begin
with. However, some entrepreneurs live in a labyrinth of denial, while others
are just unaware of their mistakes.

            Generally, forming an enterprise
associates in the concept of warfare, where soldiers should not be cursory to
jeopardize themselves in invading into the battlefield without thinking of carrying
any weapons with them; it is just absurd to think of, but just like the
soldiers, entrepreneurs also need to think circumspectly before establishing
their proposed projects to have higher chance of success. Thus, forming an
enterprise involves a thorough and systematic analysis of all the factors that
affect the possibility of success of a proposed undertaking. Since the
Philippines is one of the agricultural countries across the globe,
agribusinesses are commonly established in the said country. These
agribusinesses generate the Philippines’ income in the agricultural sector. Examples
of these agribusinesses are the following: poultry farms, livestock farms,
swine farms, feed companies, veterinary products manufacturers, hatcheries,
etc. Therefore, agribusiness defined as an enterprise or sometimes known as an
agricultural business embodies all the market and private business-oriented
entity involved on the agricultural transactions such as farming, management,
production, storage, processing, and distribution of agricultural commodities
or agro-based products  to the community
to suffice human needs, more specifically to alleviate hunger.  In order for the agribusiness men, not only in
the Philippines but across the globe, to become big key players in the industry
they need to follow the 4 general fundamentals processes of enterprise
formation. These processes are the following: territorial selection, market
opportunities identification, enterprise design, and implementation and strengthening
of business support services. Territorial selection is sometimes known as agribusiness
profiling where its primary objective is to determine areas for investment by
agribusiness men (investment entry points) and areas for agribusiness
development (developed entry points). In selecting territorial site for
agricultural business there are various interrelated factors must be
considered. These factors are the following: economics, agricultural, and
infrastructures. Economics is also related to economies of scale which
associates a person’s class in society based on how much money he or she makes.
This is also related to the buying capacity of the people in the territorial site
(salaries and wages). This is one of the factors every entrepreneur needs to
consider, because the people themselves might be his/her customers or buyers in
the future, or maybe they might be part of the agricultural business’
organizational chart (employees).Thus, the success of the proposed enterprise
is dependent on them as well. Second is the agricultural components; this is
the crucial part where the entrepreneurs should know what crops/animals (if
they wanted to pursue animal/crop production) they are engaging with, prior to
site selection. Moreover, the entrepreneurs should know the
biological/production cycle of the crop/animal they want to cultivate or rear
for their agricultural businesses. With that, the chosen organisms, either
animals or crops, can live appropriately in the chosen farm site. Thus, the
agricultural components the entrepreneurs need to consider are the following:
soil structure, type, ph, altitude, rainfall in relation to climate,
temperature, relative humidity, and etc. Last factor must be considered is the
infrastructures. This factor is related to the accessibility. An agricultural
business must have an easy access to supplies, equipment, and the market. It
must be provided with infrastructures such as roads. All of the 3 factors in
selection of farm site must be used as the entrepreneurs’ guidelines for the selection
of the best territorial site; otherwise the proposed agricultural businesses
are futile to begin with. The second fundamental process of the enterprise
formation is the market opportunities identification. This process simply identifies
which agricultural subsystem the entrepreneurs wanted to pursue in the
formation of their enterprises. The major 4 subsystems are the following: input
subsystem, processing subsystem, production subsystem, and market and
distribution subsystem. Prior of the selection which subsystem, the
entrepreneurs must consider the levels of opportunities and demand given by
each subsystem. For example, in broiler industry, the Philippines has shortage
of chicken throughout the nation. Thus, production subsystem has given greater
opportunity in the said country. Another example, China has sufficient supply
of chicken. However, this country is dependent to United States when it comes to
the supply of grandparent stocks (GPS) — that are mainly used for breeding
purposes to produce day old chicks. Thus, the input subsystem is more promising
and gives more opportunities than the other three subsystems. In summary,
entrepreneurs should know first the current situation of the industry prior to the
establishment of their agricultural enterprises; either on the input side, or
processing side; it depends really on the current status. The third process is
the enterprise design and implementation. This process mainly involves the
enterprise project’s market chain, design of the enterprise and size (either
small scale or large scale), and most importantly this is where the proposed
project will be determined if it will be established or not (go or no go).
Generally, there are four barriers or reasons why some proposed projects got
rejected or needed major revisions; these are the following barriers: high
investment requirement, access to market channel, high cost of technologies,
and economies of scale. For example, the entrepreneurs decided to go into the
input subsystem which they wanted to establish hatcheries for grandparent
stocks to produce day old chicks, since they found out that this subsystem gives
high opportunities than the other three subsystems. However, during the
implementation process, they found out that hatcheries are very expensive that
will cost them millions of pesos just to construct a hatchery. If the
entrepreneurs could not afford the budget, therefore it becomes their barrier
and the proposed project will be revised tremendously or be rejected. The last
process of the enterprise formation is the strengthening of business support
services. This involves the evaluation of the local support services (national
government, local government, attached bureaus and agencies, and other private
organizations or sectors).

            In summary, if the agribusiness men
are interested in establishing agricultural businesses they must follow the 4 fundamentals
processes of enterprise formation. They need to study all the factors that
affect the success of their proposed projects, with scrutiny (market study,
technical study, financial, socio-economics, management, and environmental
impact assessment). If the results of the study have shown that the proposed
project is feasible, then, agribusiness men will never be feared and be lost in
the labyrinth of ignorance.   

   

 

 

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