3.3 Establishing Agricultural Enterprise

• The factors of production in an agricultural enterprise
• Ways of acquiring capital
• Factors to consider in selecting an enterprise
• Sources of support services

• explain the factors of production in an agricultural enterprise
• propose ways of acquiring capital to establish an agricultural enterprise
• examine the factors to consider in selecting an agricultural enterprise
• evaluate the sources of support services for an agricultural enterprise
• appreciate the role of the factors of production in establishing an agricultural enterprise

“How do we establish an agricultural enterprise?”

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1. Establishing an agricultural enterprise
   40 min · 1 practice tasks · quiz
   Setting up a farming business: the factors of production it needs, how to raise capital, how to choose the right enterprise, and the support services available.
2. Land as a factor of production
   40 min · 1 practice tasks · quiz
   Land as space, soil, water and climate that decide what a Kenyan enterprise can grow, including tenure and scale.
3. Labour in a farm enterprise
   40 min · 1 practice tasks · quiz
   Human work on the farm: family, hired and skilled labour, and why a school project needs a real duty roster.
4. Capital in a farm enterprise
   40 min · 1 practice tasks · quiz
   Fixed capital that lasts and working capital that is used up, and why buying a house with no feed budget sinks a project.
5. Management and farm records
   40 min · 1 practice tasks · quiz
   The farmer as decision-maker, and the four books that make management real: production, money in, money out, profit.
6. Ways of acquiring capital
   40 min · 1 practice tasks · quiz
   Savings, chama, family, grants, SACCOs, AFC and bank loans, plus supplier credit and leasing - combined so interest does not sink the farm.
7. Selecting an agricultural enterprise
   40 min · 1 practice tasks · quiz
   Using land, market, capital, skills, profit, risk, interest and policy as a checklist so the class drops ideas that fail one test.
8. The market for an enterprise
   40 min · 1 practice tasks · quiz
   Named buyers, volumes, prices, quality and payment terms - walking the market so the class does not produce into a void.
9. Profitability of an enterprise
   40 min · 1 practice tasks · quiz
   Will it pay? Estimating money in and money out for the class candidate so a pretty idea that loses cash is dropped.
10. Risk in an agricultural enterprise
    40 min · 1 practice tasks · quiz
    Naming production, market, asset and finance risks, then reducing them so a school project is not a bet of school fees on one untested crop.
11. Extension and research support
    40 min · 1 practice tasks · quiz
    Using ward agricultural officers, NGO trainers, KALRO and veterinary or crop-health services instead of guessing.
12. Cooperatives, SACCOs and insurance
    40 min · 1 practice tasks · quiz
    Farmer groups that bulk inputs and market produce, SACCOs that lend, and insurance that shares asset risk.
13. School and community enterprise
    40 min · 1 practice tasks · quiz
    Putting the sub-strand together: choose, assemble factors, raise capital, keep records, use support, sell and review on a school or community plan.