Business Registration with Multinational Input Supplier

2.4 Challenges Agro-dealers faced in the Agriculture value chain

Figure 4 shows the list and range of responses by the respondents concerning the challenges faced in the agriculture value chain. Majority of respondents identified lack of access to finance (95%) as the main challenges. Other major challenges in descending orders were Competition among value chain actors (90), lack of partnerships (86%), lack of strategic assets (81%) due to lack of fixed assets and also that those who owned shop buildings that could have been used as collateral for securing bank loans, the building were on customary land and did not have title of ownership for them. Lack of training in agricultural products (67%) follows and finally and the least is lack of market demand (52%).The other challenges were delay by government to pay agro-dealers who supplied inputs to farmers in Farmer Input Support Program (FISP).

2.5 Survival strategies adopted by Agro-dealers to sustain their businesses

Figure 5 shows the survival strategies adopted by agro-dealers to sustain their businesses. Data shows that respondents adopted the following strategies in descending order of importance: adopting new marketing strategies (95%),joining networks and partnerships (86%), training of their employees in customer care and/or management (81%), engaging rural agents to sell their products (81%), establishing linkages with multinational corporations (71%), borrowing working capital from family members (43%) and adopting Information and Communication Technology (ICT) strategies such as using internet, podcast, electronic media to sell the products (24) The other survival strategies used by agro-dealers were diversification, where they engaged in farming activities

2.6 Marketing strategies to sustain business

Figure 6shows somemarketing strategies that respondents thought could enhance their businesses in the agriculture value chain. Respondents indicated that the appropriate strategies in running their businesses were adopting new marketing strategies (95%), joining districts and provincial agro-dealer’s associations (86%), engaging rural agents to sell their products (81%), and training of workers in customer care and product knowledge (81%). However, borrowing working capital from family members (43%), and adopting Information and Communication Technology (ICT) strategies (24%) were among the least strategies that respondents felt is considerable for their businesses. Secondly, respondents indicated they used the following marketing strategies: relating well with suppliers and buyers (95%), participating in out-door advertising such as farmer’s days or field days, and agricultural shows (91%), training of farmers on agronomic practices (91%), improving customer service in the business (91%) and educating farmers in product knowledge (86%). It is worth noting that respondents ranked compliance to government regulation as one of their least strategy. To the contrary, compliance is mandatory and it is suggested that it could be used as a marketing strategy by agro-dealers.

III. Conclusion

The study found access to finance as a major challenge and this is in line with literature that suggested that access to finance is probably the highest ranking challenge that Small and Medium Entrepreneurs (SMEs) faced in the whole world [12]; [13]. Other major challenges faced by agro-dealers in Chipata and Petauke districts were competition; lack of market demand; lack of partnerships which is found to be critical for agro-dealer business success [11]; lack of strategic assets to use as collateral which is in line with literature that showed that lack of adequate capital assets is one of the challenges agriculture industry entrepreneur youth faced in Zambia [8]; and lack of training which agrees with the findings of the survey of Nigerian enterprises by [6] that individuals with higher levels of education tended to do better than those with lower levels. Other challenges were delay by government to pay agro-dealers who supplied inputs to farmers through Farmer Input Support Program (FISP). This study can help policy makers to tailor their policy direction in line with the needs of agro-dealers. the study can also help the ministry in charge of agriculture to fix bottle-necks