Agriculture is the backbone of the Kenyan economy; employing over 70% of the population directly and indirectly. Agriculture is on the rise and in no way is it going to fall. This shows that choosing a venture in agriculture one is on the right track.
For one to venture into agribusiness, a few fundamental issues have to be seriously considered. This has all to do with the factors of production: land, labour, capital and entrepreurship. All these are the requirements to produce a good or a service.
Land stands for all the natural resources required for instance the actual land and water availability. Labour is all the human effort performed by the worker/labourer in the process of production. Capital is defined as the tool or machinery used to produce the good or services. It may be in form of cash or any form of an item required in the production process. For the process to be complete and run smoothly it requires an entrepreneur. This is the person who comes up with an idea and tries to make an economic profit from it by combining all the factors of production.
Once the above factors are all available the process of production may begin. This doesn’t just happen since more factors have to be considered too. Which line are you to follow? Goods production or service provision? What are the requirements for this venture? Are there risks involved? Most important, what is the reward for this venture?
Let us handle this in the next series of farming/Agribusiness 101