Introduction:

The words entrepreneur, intrapreneur and entrepreneurship have acquired special significance in the

context of economic growth in a rapidly changing socio-economic and socio-cultural climates, particularly

in industry, both in developed and developing countries. Entrepreneurial development is a complex

phenomenon. Productive activity undertaken by him/her and constant endeavor to sustain and improve it

are the outward expression of this process of development of his personality. Ducker suggests that “An

entrepreneur is one who always searches for change, responds to it as an opportunity. Entrepreneurs

innovate. Innovation is a specific instrument of entrepreneurship”. (Ducker, 1998).

An agri -preneurship is any business in the agricultural industry which includes production agriculture,

food, fiber, the environment and natural resources. Agri entrepreneurs avoid low- risk situations because

there is a lack of challenge. They avoid high risk situations because they want to succeed. They like

achievable challenges. They do not tend to like situations where the outcome of a quest depends upon a

chance and not on their efforts. They like to influence the outcome of their quest by putting in more efforts

and then experiencing a sense of accomplishment. A risk situation occurs when Agri-entrepreneur is

required to make a choice between two or more alternatives whose potential outcomes are not known and

must be evaluated in advance, with limited information. A risk situation involves potential gain and

potential loss. An agri entrepreneurship can under takes the following ventures.

a. Land development,

b. Irrigation

c. Soil- conservation

d. Fertilizers, and

e. Seeds etc.

Services in Malaysia have a vast scope of development in Malaysia. Entrepreneurs are called upon to

identify Malaysia’s strong base and to initiate activities in those specific areas, there are technologies that

dramatically change Malaysia’s social and economic conditions. Malaysia can excel and usher in a new

era in agriculture.

Agricultural entrepreneur are the ones who undertake agricultural activities such as raising and marketing

of crops, fertilizers and other inputs of agriculture. They are motivated to improve agriculture through

mechanization, irrigation, and application of technologies for dry land agricultural products.

An agri-entrepreneur are highly creative people. They always try to develop new products, processes or

markets. They are innovative, flexible and are willing to adopt changes. They are not satisfied with

conventional and routine way of doing things. They involve themselves in finding new ways of doing the

things for the better.

As the size of the business expands the problems and opportunities become more numerous and complex.

Business growth and development require an entrepreneur not to be afraid of taking decisions and certain

risks. Most people are afraid to take risks because they want to be safe and avoid failure. An Agri -

Entrepreneur always takes a calculated risk and is not afraid of failure.

There is a vast cope for entrepreneurial activities in the agricultural sector. By establishing a link between

agriculture and allied industries, the rural entrepreneur can exploit opportunities in areas of farming,

agricultural processing and marketing. The government has given priority to agriculture related

programme and ensured adequate flow of credit to small and marginal farmers through re-financing

facilities and by establishing national bank for agriculture and small development.

Fig -1: Agri – entrepreneurship in General:

Functions of Agri entrepreneurship:

In large establishments these management functions are delegated to professional managers an

entrepreneur performs many useful functions such as

Undertakes a farming ventureAssumes risk andEarns profitsIdentifies Agriculture business and related opportunities to start business either as a farmer or a distributor.

Managerial Functions: - The entrepreneur performs the managerial functions such asa. Formulating production plansb. Overseeing financesc. Dealing with the purchases of raw materialsd. Providing production facilitiese. Organizing sales

Fig – 1: Entrepreneur Functions:

Importance of Agri Entrepreneurship in Malaysia:

Entrepreneurship is the key to success in sustainable agriculture, and the success or

failure of sustainable agriculture will largely decide the fate of rural Malaysia.

Farmers know that in addition to the personal satisfaction they get from working

with the soil, they are also stewards of the land and water and a crucial economic

force in rural communities, providing consumers with a healthy diversity of

conscientiously produced foods and fibers.

Malaysian farmers have proved themselves creative and resourceful in developing,

adapting, and adopting successful production systems, but few have had the

opportunity to hone their entrepreneurial skills business evaluation and planning,

record keeping, marketing, financing, managing human resources, and the scores of

other details necessary to a going concern. However, if sustainable agriculture and

rural Malaysia are to thrive, these are the very skills that farmers have to learn.

(Arif and Yanti, 2002)

While entrepreneurship has widely been viewed by policy makers and educators

alike as the creative act of an independent businessperson, Malaysian farmers are

learning that the roots of entrepreneurship extend deep into a community’s civic

structure.

It takes more than good ideas and some market savvy to be a successful Agri -

entrepreneur. Successful entrepreneurs almost always draw upon the knowledge

and resources of others. This annotated resource list is for agriculture entrepreneurs

who want to expand, improve, or add a new enterprise to their farm operations.

Especially for smaller farms, these enterprises are often non-traditional-adding

pastured poultry to a beef operation, turning the barn into a bed-and breakfast, or

creating a corn maze to attract tourists. But whatever the innovation, it will require

both money and entrepreneurial skills.

Agriculture remains an important sector of Malaysia's economy, contributing 12 percent to the national

GDP and providing employment for 16 percent of the population. The British established large-scale

plantations and introduced new commercial crops (rubber in 1876, palm oil in 1917, and cocoa in the

1950s). The 3 main crops—rubber, palm oil, and cocoa—have dominated agricultural exports ever since,

although the Malaysian share of the world's production of these crops declined steadily during the last 2

decades. In addition to these products, Malaysian farmers produce a number of fruits and vegetables for

the domestic market, including bananas, coconuts, durian, pineapples, rice, rambutan (a red, oval fruit

grown on a tree of the same name in Southeast Asia), and others. The Malaysian tropical climate is very

favorable for the production of various exotic fruits and vegetables, especially since Peninsular Malaysia

seldom experiences hurricanes or droughts. (Zulkefly, 2001)

As rice is a staple foodstuff in the everyday diet of Malaysians and is a symbol of traditional Malay

culture, the production of rice, which stood at 1.94 million metric tons in 1998, plays an important part in

the country's agriculture. However, the overall production of rice does not satisfy the country's needs, and

Malaysia imports rice from neighboring Thailand and Vietnam.

In 1999, Malaysia produced 10.55 million metric tons of palm oil, remaining one of the world's largest

producers. Almost 85 percent or 8.8 million metric tons of this was exported to international market.

Malaysia is one of the world's leading suppliers of rubber, producing 767,000 metric tons of rubber in

1999. However, in the 1990s, large plantation companies began to turn to the more profitable palm oil

production. Malaysia also is the world's fourth-largest producer of cocoa, producing 84,000 metric tons in

1999.

Logging in the tropical rainforest is an important export revenue earner in East Malaysia and in the

northern states of Peninsular Malaysia. In 2000, Malaysia produced 21.94 million cubic meters of sawed

logs, earning RM1.7 billion (US$450 million) from exports. Malaysia sells more tropical logs and sawed

tropical timber abroad than any other country, and is one of the biggest exporters of hardwood. Despite

attempts at administrative control and strict requirements regarding reforestation in the early 1990s,

logging companies often damage the fragile tropical environment. Sharp criticism from local and

international environmentalist groups gradually led to bans on the direct export of timber from almost all

states, except Sarawak and Sabah. In December 2000, the government and representatives of indigenous

and environ-mentalist groups agreed that there is a need to adopt standards set by the international Forest

Stewardship Council (FSC), which certifies that timber comes from well-managed forests and logging

companies have to be responsible for reforestation. (Faridah, 2002)

In search of grazing areas, they further realized that they should grow plants as food for animals. They

started testing some grain products and slowly developed a taste in plants and the land was used for

cultivation. Groups of persons started living together on their

Agricultural fields, which were subsequently converted into small villages with their farms. Free exchange

of goods was started and the activities were also divided to the extent of division of labor at the village

level to complement the needs of each other. Initially each village was self-sufficient, but later they began

small trading activities on barter basis.

During the Eighth Plan period, the agriculture sector achieved a higher rate of growth than targeted and

contributed towards economic growth and export earnings. There was increased involvement of the

private sector in large scale commercial food production and agro-based industry. During the Ninth Plan

period, the development of the agriculture sector will be intensified to serve as the third engine of growth.

The emphasis will be on New Agriculture, entailing large-scale commercial farming and participation in

high quality and value adding activities leading to enhanced productivity and higher incomes. Target

specific policies and strategies will be implemented to expedite the transformation of the agriculture sector

into a modern, dynamic and competitive sector including with respect to agro-based processing activities

and agricultural entrepreneur development. (SME, 2006)

Socio-economic development programs aimed at improving the economic status of the rural population

involved in agriculture has been one of the main strategic thrusts since independence. Programs involving

human development, technical advisory services, training and financial aids have been implemented and

improved over the years. One of the most important mechanisms is through the extension and technical

advisory services of the Department of Agriculture (DOA) and supported by other related agencies

including Malaysian Agricultural Research Institute (MARDI), Farmers Development Board, Rubber

Industry Smallholders Development Authority (RISDA) and Federal Agriculture Marketing Authority

(FAMA). While in the earlier decades, the approach had been to change the traditional farmers' attitude

into adopting better farming practices and increasing yield, it was only in the nineties that the business

elements began to be included in a more prominent manner through the project impacted extension

programs. Downstream product processing activities had been given greater emphasis giving rise to the

development of micro-enterprises involved in the production and marketing of traditional foods and crafts.

However, the majority of these entrepreneurs earn below RM250,000 per year and only a handful

progressed into the RM250,000 - RM1 0 million category of small enterprises. (Osman, 2007)

As the three regional development projects are being actively pursued, the Agropreneurs in these areas

have to be prepared to make the necessary changes to their usual practices. The impact of such program is

now taking place in NCER. For example, Sime Plantation Sdn Bhd is set to turn 600 farmers into

successful agropreneurs in the next five years through their Sweet Corn Production Venture. (DOA, 2000)

As the three regional development projects are being actively pursued, the Agropreneurs in these areas

have to be prepared to make the necessary changes to their usual practices. The impact of such program is

now taking place in NCER. For example, Sime Plantation Sdn Bhd is set to turn 600 farmers into

successful agropreneurs in the next five years through their Sweet Corn Production Venture. (Sime

website, 2008)