1. INTRODUCTION:

Agribusiness is one of the most important sectors for business expansion in Bangladesh, as agriculture plays a dominant role in the economy. The agribusiness sector is experiencing rapid growth, driven by factors, such as digitalization, technological change, and evolving consumer preferences (Mishra and Sarin, 2019; Karim, 2014).

While this sector is flourishing, there is still room for expansion, particularly in the field of crops. Progressive farmers and agro-entrepreneurs are actively participating in agribusiness activities, supported by the government, to explore domestic and international markets for their products. However, the available financial support from institutional and non-institutional organizations is not sufficient for the optimal expansion of agribusiness (Dutta, 2018). The government is giving priority and support to the development of agribusiness in both urban and rural areas, especially in light of the challenges posed by COVID-19. Given the various challenges faced by the agribusiness sector in Bangladesh, this study aims to assess the current status, challenges, and future potential of crop-based agribusiness farms in the country. A cross-sectional questionnaire survey was conducted to gather data, enabling significant development and expansion of the sector.

The remainder of the study is structured as follows. First, a review of the relevant literature is presented. Subsequently, the study's research methodology is outlined. The results and discussion of the study are then presented. Finally, the study concludes by explaining the implications and limitations of the research and suggesting future research directions.

2. REVIEW OF THE LITERATURE:

Agribusiness is defined as a range of value-adding and synergy-enhancing activities related to agro-based products. These activities encompass various stages, including improved seed development, cultivation, production and processing of agricultural products, marketing and distribution, storage and transportation, new product development, export promotion, and other value-adding activities (Horalíková and Zuzák, 2012). In Bangladesh, agriculture remains crucial for the economy, and agribusiness is a key area for expansion, driven by commercial units linked to exporters and retailers. Technological advancements and changing consumer preferences drive agribusiness innovation (Karim, 2014). Agribusiness promotes employment, private sector investment, research, and policy reforms for economic development (Aggarwal and Malhotra, 2018; Rao and Choudhury, 2017; Ali and Islam, 2014). The growing agribusiness opportunities in Bangladesh attract more investors due to shifting domestic demand for high-value agricultural products (Dhar et al., 2018; Sarma, 2016). The Ministry of Agriculture has a dedicated unit, the Agribusiness Cell, for policy development, regulations, and collaboration with other ministries and development partners (Dhar et al., 2018; Sarma, 2016). Bangladesh's agribusiness faces weaknesses in financing due to poor performance, lacking a comprehensive Agro-business Policy (Usha and Devakumar, 2019; Rahman, 2017; Ali and Islam, 2014). Challenges include institutional weaknesses in finance, market information, marketing, business development services, technology dissemination, and quality assurance (Clay and Feeney, 2019; Rahman, 2017). Women's participation in agribusiness is underrecognized, with significant barriers (Palanivelu and Manikandan, 2018; Karimi, 2018; Ahmed, 2018). Insufficient infrastructure, capital, raw materials, arable land, fair pricing, marketing systems, climate change impacts, and other factors hinder agribusiness investment (Mishack et al., 2021; Usha and Devakumar, 2018; Karim, 2014).

Bangladesh's agricultural markets encompass various sectors within the national economy (Deshmukh et al., 2017; Ali and Islam, 2014). However, inefficient agricultural product marketing requires improved management to benefit farmers and boost production (Dixit and Narendran, 2019; Clay and Feeney, 2019). Inadequate marketing systems and cold storage facilities hinder perishable product growers (Dhar et al., 2018; Raman and Jaiswal, 2017). The poultry industry successfully utilizes contracts and integrated channels for marketing (Ada et al., 2012). Strategic alliances and partnerships are influenced by institutional frameworks and policies (Anbu, 2019; Ali and Islam, 2014). Weaknesses in institutions, policies, and structure limit Bangladesh's agribusiness potential (Dhar et al., 2018). Rural businesses rely on internal financing, with limited involvement from credit institutions and NGOs (Clay and Feeney, 2019; Ali and Islam, 2011; Karim, 2014). Limited options pose challenges for agricultural producers in selecting contracts or marketing channels (Clay and Feeney, 2019; Ali and Islam, 2011; Karim, 2014). Despite constraints, Bangladesh's agribusiness sector evolves, but understanding and research are lacking. Few studies exist on agribusiness development, necessitating further research. This study aims to address gaps by assessing crop-based agribusiness in Bangladesh, including status, challenges, and potential. The research question is formulated as follows.

· How can the scope of crop-based agribusiness farms be expanded in Bangladesh?

3. METHODOLOGY:

Study area:

This study was conducted in two selected districts, Mymensingh and Gazipur, in Bangladesh.

Sample selection:

A purposive sampling technique was used to select a total of sixty (60) respondents from crop-based agribusiness farms. Specifically, the respondents were the owners of these farms.

Questionnaire preparation:

Data were collected using a questionnaire divided into two parts: Part A and Part B. Part A included demographic information such as gender, age, education, and marital status. Part B consisted of 29 questions related to the current status, opportunities, and challenges of major crop-based agribusinesses in Bangladesh, including rice, jute, wheat, tea, pulses, oilseeds, vegetables, and fruits. Before data collection, the questionnaire was reviewed by experienced researchers at Bangladesh Agricultural University to ensure language appropriateness and question clarity.

Data collection:

Both primary and secondary data were collected for this study. Primary data was collected through a questionnaire survey over a period of eight (8) months from July 2021 to February 2022. The questionnaires, developed in English, were distributed to agribusiness entrepreneurs who provided information on the provided sheets. Researchers and enumerators distributed the questionnaires, and respondents were informed of their right to withdraw participation at any time. Participation in the study was voluntary, and no payment was given. Secondary data was collected from books, journals, and other research reports.

Analytical technique:

The study employed a qualitative research method to explain the current status, challenges, and future potential of the crop-based agribusiness sector. The collected data were inputted into the IBM Statistical Package for Social Sciences (SPSS) 20.0 software (Armonk, NY, USA) for statistical analysis. Frequency distribution tables were generated based on the study's objectives, and the results were presented using descriptive statistics.

4. RESULTS AND DISCUSSION:

4.1 Demographic characteristics of respondents:

The demographic characteristics of respondents are presented in Table 1. The table shows all the interviewed respondents (100%) are male. Most of the respondents (59.9 %) are aged between 26-45 years and 5 % are less than 25 years. The educational qualification of most of the respondents (55%) is below Secondary School Certificate (SSC) and 28.3% of respondents have passed SSC. Only 3.3% of the respondents have obtained Honors degree and similarly 3.3% of respondents obtained a master’s degree. The table also shows that most of the respondents (90%) are married while only 10% of the respondents are unmarried.

Table 1: Demographics of respondents

		Frequency	Percent
Gender	Male	60	100
Gender	Female	0	0
Age range	Less than 25	3	5
	26-30	11	18.3
	31-35	8	13.3
	36-40	8	13.3
	41-45	9	15
	46-50	10	16.7
	More than 50	11	18.3
	Total	60	100
Educational qualifications	Below SSC	33	55
	SSC	17	28.3
	HSC	6	10
	Honors	2	3.3
	Masters	2	3.3
	Total	60	100
Marital status	Unmarried	6	10
	Married	54	90
	Total	60	100

4.2 Type of ownership and number of employees in the crop-based farms:

Types of ownership and number of employees in the crop-based farms are presented in Table 2. The table shows that 51 (85%) of the respondents run enterprises with sole proprietorship and only 15 % of businesses are partnership-based. It also shows that 50 (83.3%) of the respondents employ less than 10 employees and only 16.7 % of the respondents have employees ranged between 10 and 20.

Table 2: Type of ownership and number of employees in the crop-based farms

		Frequency	Percent
Ownership type	Sole Proprietorship	51	85
	Partnership	9	15
	Total	60	100
Number of employees	Less than 10	50	83.3
	10-20	10	16.7
	Total	60	100

4.3 Duration of experience in running farms:

Table 3 shows that most of the crop-based farm owners (55%) have experience between 5 and 15 years in running farms and only 15% of the respondents have more than 20 years of experience.

Table 3: Duration of experience in running farms

	Frequency	Percent
Less than 5 years	11	18.3
5-10 years	17	28.3
11-15 years	16	26.7
16-20 years	7	11.7
More than 20 years	9	15
Total	60	100

4.4 Reasons for starting the own agribusiness farm:

Table 4 illustrates that 35 (58.3%) of respondents indicated that they started their farms to survive. Furthermore, other respondents also opine that starting their own farm might be motivated by a variety of factors, such as accepting passed on legacy, trying something new, making a difference in the society.

Table 4: Reasons for starting the own farm

	Frequency	Percent
Make a difference in society	1	1.7
To accept passed on legacy	17	28.3
To survive	35	58.3
To try something new	7	11.7
Childhood dream	0	0
To be a role model	0	0
Total	60	100

4.5 Level of satisfaction in running own farms and recommendation to youth for engagement in agribusiness

Table 5 presents the satisfaction level and recommendation to youth for engagement in agribusiness. 50% of the respondents are satisfied with their businesses and only 10% of the respondents are not satisfied. It is also noticeable that a vast portion of the respondents (40%) are neither dissatisfied nor satisfied. It also shows that 32 (53.3%) of respondents agree to recommend the young people to start crop-based agribusiness and only 10% do not agree. Notably, a significant number of respondents (36.7%) are not sure whether they will recommend it to young people or not.

Table 5: Level of satisfaction in running own farms and recommendation to youth for engagement in agribusiness

		Frequency	Percent
Satisfaction level of entrepreneurs	Dissatisfied	6	10
	Neither dissatisfied nor satisfied	24	40
	Satisfied	29	48.3
	Very satisfied	1	1.7
	Total	60	100
Whether to recommend agribusiness to the youth or not	Disagree	6	10
	Neutral	22	36.7
	Agree	27	45
	Strongly agree	5	8.3
	Total	60	100

4.6 Challenges faced by the owners of agribusiness farms:

Table 6 shows that 36 (60%) of the respondents faced a financial crisis while starting their businesses and 28.3% of the respondents had other problems, such as lack of information and confidence, and lack of support from family. Only 6.7% of the respondents did not face any challenge at the start-up stage. The table also shows that 24 (40%) of the respondents identified the lack of experience as the main challenge to export agribusiness products in the international markets and 60% of the respondents determined other barriers, such as difficulty in finding buyers and getting export license, lack of high-quality crops.

Table 6: Challenges faced by the owners of agribusinesses

		Frequency	Percent
Challenges of start-up	Combining domestic and professional life	3	5
	Doubt of self-confidence	5	8.3
	Financial crisis	36	60
	Lack of information	8	13.3
	No obstacles	4	6.7
	Support from family	4	6.7
	Total	60	100
Challenges to export	Difficulty in finding buyers	15	25
	Difficulty in getting export license	6	10
	Lack of experience	24	40
	Lack of high-quality crops	15	25
	Total	60	100

4.7 Ways of advertisement of crop-based products:

The ways of advertisement of crop-based products by the respondents are presented in Table 7. Of the surveys analyzed, 56 (93.3%) of the respondents advertise their products by word of mouth and the rest of the respondents (6.7%) are dependent on paid search and social media advertising.

Table 7: Ways of advertisement of crop-based products

	Frequency	Percent
Paid search advertising	3	5
Social media advertising	1	1.7
Word of mouth	56	93.3
Total	60	100

4.8 Investment, sources of fund, and break-even scenarios of respondents:

The study finds that 42 (70%) of respondents invested less than Tk. 5 lacs while starting their farms and only 3.4% invested between Tk. 16 lacs and Tk. 25 lacs. It also shows that 24 (40%) of respondents invested in their farm from their personal savings and most of respondents (53.3%) were dependent on friends and family members, commercial finance companies, and commercial banks. Besides, 25 (41.7%) of respondents reached the break-even point within less than two (2) years and 56.7% reached the break-even point between 2 and 7 years. Only 1.7% of the respondents took more than 7 years to reach break-even.

4.9 Use of websites by respondents:

In this study, 60 (100%) of respondents mentioned that they do not have any website for their farms, which indicates the severe lack of technology adoption in the crop-based agribusiness farms.

4.10 Regarding the adoption of e-commerce:

In this study, 51 (85%) of respondents stated that they have not adopted e-commerce yet for selling their products and they sell their products directly to customers by conventional marketing approach, and only 15% of respondents stated that they have already adopted e-commerce for their businesses.

4.11 Impacts of COVID-19 on crop-based agribusiness farms:

The impacts of COVID-19 on agribusiness farms are presented in Table 8. It shows that 30 (50%) of respondents stated that their profitability decreased due to COVID-19. The lower demand of product, lack of transportation facility, social distancing, and government regulations during COVID-19 may be the reasons for that.

Table 8: Impacts of COVID-19 on crop-based agribusiness farms

	Frequency	Percent
Decreasing profitability	30	50
Decreasing salaries	4	6.7
Digital transformation	1	1.7
Increasing layoffs	2	3.3
No impacts	17	28.3
Seek funding through the relief	6	10
Closing the farm	0	0
Total	60	100

4.12 Current position of farms compared to competitors:

In this study, 34 (56.7%) of respondents stated that it is hard to say they are doing better than their competitors, 11 (18.3%) of respondents opined that they are doing better than their competitors, and the remaining respondents (25%) stated that their competitive business position is better than their competitors.

4.13 Current conditions of farms:

The current conditions of farms are presented in Table 9. It shows that 40 (66.7%) of respondents stated that their farms are being run normally and 11 (18.3%) of respondents stated that their farms are undergoing loss.

Table 9: Current conditions of farms

	Frequency	Percent
Just running normally	40	66.7
My farm is blooming	9	15
Undergoing loss	11	18.3
Total	60	100

4.14 Strengths, weaknesses, opportunities, and Threats (SWOT) analysis of the farms:

In this study, 18 (30%) of respondents stated that their excellent customer service is their prime strength. The table also shows that 36 (60%) of respondents indicated that their lack of capital is their prime weakness. It also shows that 23(38.3%) of respondents stated that the expansion of the market share is the prime opportunity for them. Besides, 29 (48.3%) of respondents mentioned that price fluctuation is the prime threat to them.

4.15 Required academic degrees and skills to be an entrepreneur in the agribusiness sectors:

Table 10 shows that 32 (53.3%) of respondents opined that BSc or higher degree in Agriculture is desirable to start a crop-based farm. Again, the table shows that 19 (31.7%) of respondents stated that courage and risk-taking behavior is the main skill to be an entrepreneur and other important skill are perseverance, self-confidence, and willingness to learn.

Table 10: Required academic degrees and skills to be an entrepreneur in the agribusiness sectors

		Frequency	Percent
Academic degrees	BBA or higher degrees in Management	3	5
	BSc or higher degrees in Agribusiness	20	33.3
	BSc or higher degrees in Agricultural Economics	5	8.3
	BSc or higher degrees in Agriculture	32	53.3
	Total	60	100
Important skills	Ambition	14	23.3
	Courage and risk taking	19	31.7
	Creativity	3	5
	Perseverance	7	11.7
	Self-confidence	10	16.7
	Willingness to learn	7	11.7
	Total	60	100

4.16 Availability of enough training institutions to train the entrepreneurs:

In this study, 50 (83.3%) of respondents mentioned that the training institutions are not enough to promote their farms and 10 (16.7%) of respondents said that the training institutions are enough to promote their farms.

4.17 Ways of teaching entrepreneurial roles to other potential entrepreneurs:

The ways of teaching entrepreneurial roles to other possible entrepreneurs are presented in Table 11. It shows that 37 (61.7%) of respondents mentioned that conducting public seminars is the most effective way to teach entrepreneurial roles to other potential entrepreneurs and 36.6% of the respondents state that sharing educative materials and motivational videos on social media and personal website are the effective ways to educate the entrepreneurial skills to the potential entrepreneurs.

Table 11: Ways of teaching entrepreneurial roles to other potential entrepreneurs

	Frequency	Percent
Conduct public seminars	37	61.7
Develop interactive applications for both Android and iOS devices	1	1.7
Sharing educative materials (such as presentations and books) on social media and personal website	11	18.3
Sharing motivational videos on social media and personal websites (if any)	11	18.3
Total	60	100

4.18 Regarding the government policies whether these are favorable or not:

In this study, 30 (50%) of respondents stated that they are not sure whether the existing government policies are favorable or not for their farms. Only a minimal number of respondents (10%) stated that the existing government policies are favorable, while a vast portion of the respondents (40%) think that the existing government policies are not favorable.

4.19 Regarding the export of crop-based products in international markets:

In this study, 59 (98.3%) of respondents stated that they do not export crop-based products to international markets. Therefore, it is assumed that if this current farming method is maintained, nearly all respondents believe that exports to international markets are impossible.

4.20 Regarding the ways of maintaining the quality of crops:

From Table 12, we see that 21 (35%) of respondents believe that focus on continuous improvement can enhance the quality of crops. 26.7% of respondents think that inspecting throughout the production process can ensure the quality of products. Moreover, 21.7% of respondents suggested that developing specifications for quality products is essential to maintain quality and 11.7% of respondents stated that auditing potential and existing suppliers can be helpful to maintain the quality of products.

Table 12: The ways of maintaining the quality of crops

	Frequency	Percent
Audit potential and existing suppliers	7	11.7
Develop specifications for quality products	13	21.7
Focus on continuous improvement	21	35
Inspect throughout the production/ farming process	16	26.7
Test products	3	5
Total	60	100

5. IMPLICATIONS, LIMITATIONS, FUTURE RESEARCH, AND CONCLUSION:

5.1 Implications for research and practice:

This research contributes greatly to the agribusiness research in the field of crops sub-sector in Bangladesh. Regarding the theoretical point of view, this research assesses the current status, challenges, and future potentials of agribusiness at the primary level. This study also contributes to theory by exploring the overall scenarios of these farms.

The empirical findings of the study provide valuable information regarding the development of practical guidelines for the expansion and development of crop-based agribusiness farms in Bangladesh. The study found that most of the entrepreneurs of crop-based agribusiness farms face financial crises during their start-up phase, and they mostly depend on personal savings as a source of funds. Therefore, the government should come forward to facilitate bank loans and motivate entrepreneurs. The owners of agribusiness farms identified the price fluctuations as the biggest threat to their success. In this regard, the policymakers should take proper initiatives, such as regular monitoring of markets to control the price of the products which, in turn, will increase the sustainability of farms. It is also found that most of the farms do not have any website and still they have not adopted e-commerce. Most of the farms also do not follow modern advertising techniques and they mostly depend on word of mouth for the advertisement of their products. So, the policymakers need to facilitate the internet and arrange proper training for the agribusiness entrepreneurs so that they can use the electronic mediums of advertisements and adopt websites and e-commerce for their businesses. Thus, it will enhance the overall sales and profitability of the farms. Besides, almost all of the studied farms do not involve in exporting products to the international markets due to the lack of experience and high-quality products, and most of the respondents also think that government policies are not favorable for the development of their farms. Therefore, it is required to produce quality products and make changes in the government policies to reach the international markets. More training institutions should also be established to train the new entrepreneurs which can help them overcome challenges and ensure the sustainability of the farms.

5.2 Limitations and future research directions:

There are some limitations to the current study that should be mentioned. Firstly, the data collection from this large field was challenging due to the diversity of crop farms and limited time. Secondly, the sample size of this study was selected purposively. However, purposive sampling is not an effective method of collecting data from a large population. It is subject to researcher and sampling biases. Therefore, future studies may select sample size based on the established formula which considers the total population size. Thirdly, due to the cross-sectional design, the proposed study may not be representative of the actual conditions of crop-based agribusiness farms in Bangladesh. Future studies may use longitudinal data to unfold the changing situations of agribusiness farms over time and to reflect the actual scenario more precisely. Fourthly, this research was conducted covering only two areas of Bangladesh, and the results of which could not symbolize the overall situation of agribusiness farms. Attention should be given to future studies to collect data from many parts of Bangladesh. Besides, this research is a sample of voluntary participants. Finally, the determination of the sample of agribusiness farms was comparatively a few (only 60 farms). This can be increased.

5.3 Conclusion:

Agribusiness is a multifaceted enterprise that combines agricultural farming, value-added processing, packaging, and delivery. Crop-based agribusinesses not only ensure food security but also help to create jobs, alleviate poverty, and improve nutritional attainment. This specific study demonstrates how economic development is inextricably linked to the performance of the agribusiness sector. Existing situations, prospects, obstacles, solutions to the connected issues, and policy implications were also discussed in this paper. The results of the study identified that the entrepreneurs of the crops sector have been facing various challenges, for example, the financial crisis in the start-up phase, price fluctuations, decreasing revenues due to COVID-19, lack of advanced technologies, lack of high-quality production, lack of enough training institutions, and the lack of favorable government policies. Therefore, these findings of the study provide valuable information for entrepreneurs, planners, and policymakers to develop strategies and policies for the rapid expansion of the crop-based agribusiness sector in Bangladesh. Furthermore, due to the scarcity of public funds, private funds from both domestic and international investors might be encouraged for infrastructural development in this sector. Strategic relationships and cooperation with foreign enterprises must be formed and supported. The crop-based agribusiness sector in Bangladesh has a bright future if we can improve the sector rigorously.

6. DATA AVAILABILITY:

The data generated or analyzed during this study can be available on request.

7. CONFLICT OF INTEREST:

The authors declare that they have no conflict of interest.

8. ACKNOWLEDGMENTS:

The authors are pleased to acknowledge the financial support from the Bangladesh Agricultural University Research System (BAURES) for conducting the project (Project no. BAU-2020-149). Moreover, the authors would like to give special thanks to the enumerators and respondents for participating in the data collection process and anonymous referees for their valuable and constructive comments.

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Received on 19.02.2023 Modified on 28.03.2023

Asian Journal of Management. 2023;14(3):171-177.

DOI: 10.52711/2321-5763.2023.00029