Accelerator program to help smallholder farmer organisations strengthen their business models

SRFSI has partnered with iDE Bangladesh to implement an enterprise accelerator pilot program in Bangladesh and India, to help social enterprises develop a commercially viable business involving CASI technologies. Drawing on its experience in the development of market systems and enterprise growth, iDE provided their technical support in improving the business management ability of farmers’ organizations in Coochbehar (India) and federations in Rangpur (Bangladesh), helping them find pathways to stable and self-sufficient businesses.

Envisioning the commercial adoption of CASI machineries, the accelerator program aims to help improve the business model and equip the social enterprises with additional resources that will help strengthen their business management capability and investment readiness.

After a quick assessment of the federations in Rangpur, Mirganj Bohumukhi Samaj Unnayan Sangstha, and Kursha Union Federations were selected. Similarly, another assessment of the Farmer Producer Companies (FPCs) in Coochbehar helped select Petla Nepra Farmer Producer Company Limited and Rabindra Farmer Producer Company Limited.

The evaluation of the Rangpur federations showed that, in terms of collective business activities as well as CASI machines, these federations were at a budding level. Organizations indicated they still had queries on the agronomic and financial outcomes of the machines. As a result, a three-day accelerator program was carried out at the end of November 2020, which was designed to recognize and evaluate potential business ideas for machinery (including CASI machines), develop their ability to run businesses and pitch to gain funding from other sources.

Similarly, the Coochbehar evaluation revealed that the FPCs are undertaking agribusiness to meet the needs of local farmers through crop husbandry, livestock and aquaculture, concentrating on integrated agriculture. Though FPCs are also invested in the service sector of agri-mechanization, this sector is limited in reach and coverage as they do not own farm equipment and machinery but highly rely on ‘Custom Hiring Centres’ for bulk hiring and then provide services to their members and other local farmers.

Because of more labor shortages and increased labor costs, the potential for farm mechanisation-based enterprises in Cooch Behar is increasing every year which provides the FPCs with a unique opportunity to boost their business. Nevertheless, the need for heavy investments, poor techno-management capabilities and poor support related to sales and service has impeded the FPCs from adopting agri-mechanisation services as a main business line. So, there is a special need to equip the FPCs with certain information and support services which led to a three-day accelerator program conducted during late December 2020.

The goal of these accelerator programs is to provide the enterprises with a sound understanding of the target markets and clients, as well as of different business aspects, including strategy and financial management. This will further strengthen their ability to effectively express and introduce their agri-machinery business strategy to prospective funders. Through collaborating with iDE Bangladesh, the ACIAR funded SRFSI project envisages the commercial uptake of the CASI machineries aiming to strengthen the businesses of federations and FPCs.

This work will progress to an online training module where FPCs and micro entrepreneurs can learn about how to create viable business models for agri-mechanisation, which will be completed in the coming months. This forms part of the scaling strategy for the SRFSI program.

For more information, please contact Dr Brendan Brown ([email protected]).