crop diversification

AgCLIR Lessons from the Field: Closing A Business

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Attached Document: 
application/pdf iconAgCLIR - Closing a Business.pdf
Source: 
USAID/BizCLIR
Document Type: 
PDF
Date: 
January 10, 2011

Rural businesses face unique risks to insolvency in many countries, notably loss of personal property.  Just as crop diversification is informally the beginning of a new business, a strategic shift away from certain products or processes is considered by this chapter. AgCLIR Lessons from the Field: Closing a Business is a briefer that highlights the specific issues that must be addressed in regards to the local legal, regulatory, and institutional environments in starting an agribusiness. 

 

AgCLIR Chapter: Closing A Business

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A farmer deciding, after two rejected shipments, that the risks of producing green onions for the global market are too great and that the production of sweet potatoes for the local market would be better is effectively “closing the business” of green onion cultivation and starting another. The losses from the green onion business have already been absorbed by the household enterprise and sweet potato planting materials can be readily acquired. Such easy entry and exit characterize many agricultural enterprises in the developing world.

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