02 june 2021
3 min
1087
Author:

How to start a business in agriculture?

How to start a business in agriculture?

According to a study by Marketingcenter.kz, in the first quarter of 2021, 563 new organizations were registered in Kazakhstan in the field of agriculture (excluding forestry and fisheries). Most of the enterprises appeared in the field of mixed agriculture - 211 organizations. There were 165 livestock enterprises opened, 165 organizations involved in growing seasonal crops, 39 enterprises are engaged in auxiliary activities. 8 enterprises were interested in growing perennial crops.

For comparison, last year 1626 new companies were opened in the field of agriculture. And if the pace set at the beginning of this year will be maintained, probably this year over 2000 new enterprises will be opened. The above figures clearly show the interest of Kazakhstan people in the development of business in the agricultural sector.

How do you start your own business?

The first problem which awaits all beginning entrepreneurs in agriculture is the lack of knowledge. It is not always easy to choose the direction, to create a business plan, to find a source of financing and to deal with documents on land.

To support business initiatives of first-time entrepreneurs the state developed a special program "Business Bastau". Within the framework of this program in the National chamber of Entrepreneurs of Kazakhstan "Atameken" you can attend training courses on business skills. To do so you just need to apply to a regional employment center, choose a direction and start training.

Askhat Alzhanov, one of those who decided to try his hand in the agricultural sector. Last year he was trained under the Business Bastau program and opened his own poultry farm in the capital.

"Every person who wants to go into business understands that initial funds are needed for their business. But most do not know that business development depends not only on monetary investments, but on many factors. Such as advertising, staffing and more. Personally, I did not know all of these nuances. The training program helped me," says Askhat.

In the age of the Internet one has access to any kind of information, but according to the entrepreneur, the information is better absorbed only during lectures, where the material is not just told, but explained in detail and illustrated with examples.

"Almost 90% of the information I learned in the lessons came in handy for my business project. So the program gave me a great and useful experience".

As our hero tells us, before starting your own business, you need to develop a business plan in your head. Clearly understand what you want to do, understand whether it will make a profit, etc.

"My parents were involved in farming, so I had experience in raising birds. After taking the course, I passed my exams and sent my business project to the committee for review. After two weeks of being reviewed they gave me a financial grant. Generally, for aspiring entrepreneurs in agriculture, in my opinion, it is important to determine two things - the place where production will be located and to whom exactly you will sell your products. If you do not know these two things, you should not start. That is, you must understand exactly where you will produce your products and to whom you will sell them.

Any business has its challenges, so the entrepreneur should always be ready for difficulties, the young poultry farmer said. From his own experience, Askhat urges those starting their own business to be prepared for possible risks.

"When I was opening a poultry farm, we suddenly discovered that the environment in the capital was unfavorable for poultry farming. There were many factors that directly affected the loss of poultry stock. But the most weighty one was the problem of buying feed. To grant subsidies or loans, any bank requires collateral. Personally, I rent a place to live and rent premises for my business. Therefore, I can't provide collateral. This is the most problematic point. What kind of business development can we talk about then? That's why I recommend beginning businessmen to consider all the risks", the entrepreneur adds.

Askhat doesn't hide the fact that he had to overcome many difficulties on the way to starting his own business. But these difficulties, he thinks, made him more courageous and helped him develop his entrepreneurial spirit.

It is not easy to build a business in agriculture, but it is possible. Askhat Alzhanov's poultry farm is a perfect example of this. Opened only a year ago, the young enterprise has already recovered its costs. Moreover, the businessman has begun to receive income from his creation.

The food industry has always been considered a profitable niche, so business in agriculture will always be relevant.

"There are so many opportunities today that no one takes advantage of. Even when I tell close friends or relatives to start their own business, I hear the same thing: "You need money, connections," and other things. A lot of people think in stereotypical terms. Personally, I think you have to believe in yourself first, try to do something. And then you should look at the results and make concrete conclusions," says Askhat Alzhanov.

As you understood from the story of the entrepreneur, at one time he was not able to solve the issue of providing collateral for loans and subsidies. But in the course of preparing this article we found out that first-time businessmen can count on government support in this matter. In the absence of collateral, the entrepreneur can apply to the Fund for Financial Support of Agriculture. The fund will act as a guarantor in the issuance of credit. You can also apply there if you have problems with the initial financial capital to start a business. The fund will help you borrow money at a low interest rate.

Are you still pondering? Maybe it's time to believe in yourself and start your own business.