Lesson four


These are businesses which deal in production and selling of agricultural products for profits (money) 



  • Livestock production
  • Crop production
  • Poultry keeping
  • Agriculture
  • Agro support services
  • Floriculture
  1. Crop Production. These are businesses dealing in production and selling of crops for example maize, millet etc.
  2. Livestock businesses. These are agro – businesses engaged in rearing and selling of different animals for milk and meat and they include, cows and goats. 
  3. Poultry keeping businesses: These are businesses which concentrate on rearing and selling of different types of birds for either eggs or meat and they include hens, turkeys, duck etc.
  4. Aqua-culture businesses: These are businesses dealing in keeping of bees for honey.
  5. Floriculture businesses: These are businesses engaged in the growing of flowers for sale.
  6. Agro support services: These are businesses that provide support services which help in the smooth running of agriculture as an activity for example providing inputs like herbicides, fertilizers, pesticides etc. 

4.3       Requirements for agro – businesses 

  • Land. All agro – businesses need land since such activities need relatively a big area. Land may be inherited, bought or hired.
  • Capital: This is very important because it can be used to acquire various requirements such as land, fertilizers and farm inputs.
  • Labour (human labour): These are people used to work like planting, weeding, harvesting and selling crops.
  • Market: This is where we sell the produce from
  • Technology: This is how good or products are produced.
  • Infrastructures such as roads, power, water etc. 

4.4       Importance of Agro – businesses 

  • They provide employment opportunities to many people in the country thus simulating role increased earning e.g. people as employed as cultivators, sellers, veterinary doctors etc. They pay taxes to the government hence providing government revenue used to invest in development programs like construction, providing services etc 
  • They provide market for other products for example farmers buy farm inputs like hoes, ox ploughs, tractors, combine harvesters etc.
  • Some agro – businesses make use of some waste products from other businesses which controls waste disposal on the environment e.g. bird and animal droppings, coffee husks etc.
  • They earn foreign exchange in the country by exporting produce to other countries
  • They are a source of raw materials to other businesses for example agro – processing countries.
  • Agro businesses contribute to the development of the community through supporting development programs like terracing, cover plants etc.
  • Challenges facing agro – businesses.
  • Natural hazards for example un reliable rainfall, storms etc. which negatively affect the quality of agricultural produce.

4.5       Questions 

  1. Explain the different forms of agri – business operating in your area.
  2. Explain the advantages of agri-business in our community
  3. Discuss the challenges facing agri – business
  4. As a student of entrepreneurship, suggest workable ways of overcoming such challenges.