Development of managerial and entrepreneurial skills of young eco-farmers via joint VET curricula, enhanced qualification profile, assessment standard and sustainable cooperation synergies

1. Development of managerial and entrepreneurial skills of young eco-farmers via joint VET curricula, enhanced
qualification profile, assessment standard and sustainable cooperation synergies (ecoFAR)
597256-EPP-1-2018-1-BG-EPPKA3-IPI-JQ-VET
WP5: Joint qualification curricula for acquisition of managerial
and entrepreneurial skills by farmers at eco-farm SME
Module 4: Access to finance and markets
Authors: Dr. Baboo Ali & Dr. Firat Alaturk
Canakkale Onsekiz Mart University, Turkey

2. Table of contents
• 4.1 How to finance new entrepreneurships?
– 4.1.1 Financial sources of entrepreneurs
• 4.2 New strategies for financing
– 4.2.1 Reasons for financing
– 4.2.2 Funding sources
• 4.3 Funding opportunities at National and EU levels
• 4.4 How to conduct a successful interview in obtaining funds, credits and/or bank loans?
• 4.5 What is a business plan?
• 4.6 How to establish sustainable marketing relations?
• 4.7 E- marketing opportunities for young eco-farm entrepreneurs
– 4.7.1 Applying management accounting
– 4.7.2 Identify the suitable market ecosystem

3. 4.1 How to finance new entrepreneurships?
Entrepreneur or eco-entrepreneur; the people or groups who do not think
only for the purpose of profit in their business opportunities and also pay
attention to the sustainability of the environment and natural ecosystems.
4.1.1 Financial sources for entrepreneurs
– Internal sources of funding
• 3 Fs
– Family
– Founder
– Friends
Source: Bhatt and Tomer (2017).
https://www.researchgate.net/publication/313030562_FINANCING_ENTREPRENEURSHIP_VENTURES

4. 4.1.1 Financial sources for entrepreneurs
– Internal sources of funding
• Bootstapping
• Business alliances
– External sources of funding
• European Union (EU)
• Ministry of Agriculture
• Rural Development Agencies
• Banks
– Agriculture Banks
– Agriculture cooperative banks
• Corporate investors
• Private Sectors
– NGOs
Source: https://www.pexels.com/tr-tr/fotograf/acik-hava-arazi-bitkiler-buyume-2253579/
4.1 How to finance new entrepreneurships?

5. 4.2 New strategies for financing
Sustainability in agricultural production is made possible by the provision
of financing resources that arise from production to consumption.
4.2.1 Reasons of financing
– Small agricultural business structure
– Marketing costs
– New technology
– Weak capital structure of an agricultural enterprise
– Dependency of production on natural conditions
– Uncertainty of prices in market
– Problems faced by transferring the businesses through inheritance
Source: https://www.fastbusinessplans.com/sample-
business-plans/organic-farm-business-plan.html

6. 4.2.2 Funding sources
– Loan
• Agricultural loans
– Leasing
• Financial leasing system
– Factoring
• Purchase of the right of credit
– Agricultural insurance agents
https://www.ifc.org/wps/wcm/connect/55301b804ebc5f379f86bf45b400a808/Innovative+Agricultural+SME+Finance+Models.pdf?MOD=AJPERES
4.2 New strategies for financing

7. 4.3 Funding opportunities at National and EU levels
• European Union (EU) Funding Agencies
• Ministry of Agriculture Funded Projects
• Rural Development Agencies
• Eco-agriculture Organizations
• Non-governmental Organizations (NGOs)
• Others
Source: https://www.fun-mooc.fr/courses/CoR/114001/session01/about

8. • Farmers need to be registered with the Farmers' Register System in
order to carry out banking transactions more easily.
• Priority is given to young farmers in agricultural loans.
• Provision of important facilities in banking operations for loans.
• Sufficient bank credit rating.
• Credit transactions can also be facilitated by being a member of the
Agricultural Credit Cooperatives.
4.4 How to conduct a successful interview in obtaining funds, credits
and/or bank loans?

9. • Purpose of the agricultural activity to be implemented.
• Expenses to be incurred during the implementation of
agricultural activities should be calculated.
• Products and their quantities to be grown in agricultural
production need to be determined.
• Determine the marketing variations of the products that would
emerge as a result of the agricultural production activity.
• Income-expense ratios should be compared and the necessary
studies for the future should be planned.
4.5 What is a business plan?
https://www.fastbusinessplans.com/sample-business-plans/organic-farm-business-plan.html

10. Agricultural products are generally sold in the following places;
• Public Institutions
• Private Sectors
• Cooperatives and Unions
• Chambers of Commerce
• Wholesalers
4.6 How to establish sustainable marketing relations?
Source: https://www.epa.gov/sites/production/files/2015-07/documents/ag_101_agriculture_us_epa_0.pdf

11. To ensure sustainability in the marketing of agricultural products;
• Signing a contract with the institutions where the products will
be sold
• Supplying the same quality of products every year
• There should not be a decrease in the amount of production by
years.
: http://www.iosrjournals.org/iosr-jef/papers/vol4-issue2/A0420108.pdf
4.6 How to establish sustainable marketing relations?

12. 4.7 E- marketing opportunities for young eco-farm entrepreneurs
• Population density of region
• Education level
• Gender distribution
• Transportation cost of agricultural products high regions
• Heavy traffic regions
http://popularkheti.info/documents/2013-4/PK-1-4-1-5-14.pdf

13. 4.7.1 Applying management accounting
– Properties of Management accounting
• Flexible
• Future oriented
• Available at frequent intervals
• Emphasize the relevant costs rather than the actual costs
• Reliable
• Give direction to decision making
• Available at decision times
• Give the lowest cost in the result of information produced
Source: https://webrazzi.com/2011/05/29/her-girisimcide-olmasi-gereken-10-ozellik/
4.7 E- marketing opportunities for young eco-farm entrepreneurs

14. 4.7.1 Applying management accounting
• Management costs
• Production costs
• Marketing costs
http://orgprints.org/31340/1/niggli-etal-2017-TIPI-GlobalVisionStrategy-CondensedVersion.pdf
4.7 E- marketing opportunities for young eco-farm entrepreneurs

15. 4.7.2 Identify the suitable market ecosystem
The environmental growth factors of the area where the plant is
going to be grown should be determined in a proper way.
It is also important to be grown those plant species which are
suitable for the region, and accordingly, to establish a balance
between;
• Supply
• Demand
Source: https://www.tenego.com/identifying-sales-channel-partners-in-your-
market-ecosystem
4.7 E- marketing opportunities for young eco-farm entrepreneurs

16. References
1- Bhatt, Y., Tomer, N. 2017. Financing entrepreneurship ventures.
https://www.researchgate.net/publication/313030562_FINANCING_ENTREPRENEURSHIP_VENTURES
2-Anonim, 2019. https://ec.europa.eu/eip/agriculture/sites/agri-eip/files/eip_agri_funding_for_web.pdf
3- https://www.tenego.com/identifying-sales-channel-partners-in-your-market-ecosystem
4- Environmental protection Agency. 2019. https://www.epa.gov/sites/production/files/2015-
07/documents/ag_101_agriculture_us_epa_0.pdf
5- https://www.fun-mooc.fr/courses/CoR/114001/session01/about
6-Terziev, V. 2016. Entrepreneurship in organic production – An incentive for sustainable rural development.
Agricultural and Resource Economics, 2(4): 30-42 pp.
7-European Commission (1996). Introduction To Electronic Commerce, DGIII/F/6.
http://www.ispo.cec.be/ecommerce/whatis.html.
8-https://archinect.com/news/bustler/6844/projects-centered-on-key-ecological-and-societal-
challenges-unveiled-as-the-wafx-2018-prize-winners
9-Carter, S. 1997. Global agricultural marketing management (marketing and agribusiness texts-3), Food and
Agriculture Organization of the United Nations (FAG), Rome, Italy.

17. Disclaimer
For further information, related to the ECO AGRI project, please visit the project’s website at www.ecofarm-
manager.eu or visit us at https://www.facebook.com/Ecofar2018/.
Download our mobile app at https://play.google.com/store/apps/details?id=com.ecofar.mobile.
This project (597256-EPP-1-2018-1-BG-EPPKA3-IPI-JQ-VET) has been funded with support from the European
Commission (Erasmus+ Programme). This publication reflects the views only of the author, and the Commission
cannot be held responsible for any use which may be made of the information contained therein.