SCHOOL OF AGRICULTURE AND ENTERPRISE DEVELOPMENT
DEPARTMENT OF AGRICULTURAL ECONOMICS
COURSE OUTLINE
1. Course Code: KBT 312
Course Title: Agri-Enterprise Development
Duration: 35 Hours
Program: Regular – BSc (Agribusiness Management and Trade)
Regular – BSc (Dryland Agriculture and Enterprise Development)
Period: Semester 1 2019/2020
Lecturer: Patrick Mugo (0723525319)
2. Purpose of the Course
The purpose of this course is to enable students to learn the key elements of entrepreneurship, enterprise
planning, and promotion discourses towards Agri-enterprise Development.
3. Expected Learning Outcomes
By the end of the course, the student will be expected to:
a) Explain the concept of Agri-entrepreneurship management and development.
b) Develop, assess and evaluate business ideas and opporutunities.
c) Discuss emerging dimensions in Agri-enterprise promotion.
d) Examine key issues and opportunities in Agri-enterprise industry.
4. Course Content
Lecture Duration
Topic of Discussion
Week/Topic (Hours)
Nature and Scope of Business Enterprise
1 Nature, Scope, Importance, Objectives of Business Enterprises 3
Classification of Business Enterprises
Nature and Scope of Agri-Enterprise
2 3
Definition, Scope and Importance of Agrienterprises
The Nature of Entrepreneurship
Meaning of Entrepreneurship
Characteristics, Types and Functions of Entrepreneur
3 3
Role of Entrepreneurship in Economic Development
Entrepreneurial Failure
Rewards and Challenges of an Entrepreneur
Forms of Business Organisation
Sole proprietorship, Partnership; Co-operative Society, Company, Limited
4 3
Liability Partnership
Choice of form of Organisation
KBT 312: Agrienterprise Development Lecture Notes Page 1
, Setting Up a Small Business
5 Exploring Opportunities 3
Preparing a Plan of Action
Developing Ideas and Business Opportunities
New Idea Sources
Techniques of Generating Ideas 2
6
Idea Assessment and Opportunity analysis
Idea Evaluation
Continuous Assessment Test 1 1
Business Planning
Meaning and Functions of a Business Plan
7 Who writes and who reads a Business Plan 3
Writing a Business Plan
Business plan for a Startup
Value Chain Approach (VCA) and Farmer Enterprise Groups (FEG)
Meaning and Objectives of VCA
Reward of VCA
8 3
Steps in Building VC
Meaning and Importance of FEG
Formation, Functions and Responsibilities of FEG and Clusters
Contract Farming and Business Incubators
Definition, Models and Types of Contract Farming
9 Incentives and Disincentives and Success factors in Contract Farming 3
Definition and Features of Business Incubators
Opportunities and Constraints of Business Incubators
Agri-Enterprise Support Services and Institutions In Kenya
10 Agrienterprise Support Services in Kenya 3
Agrienterprise Institutions in Kenya
Key Issues in Agri Enterprise Industry in East African Community
Status and Feature of Agro-Industry in EAC
11 3
Key Opportunities in Agrienterprise Development
Opportunities for Regional Cooperation
Continuous Assessment Test 2 1
12
Wrap – Up and Revision 1
Total 35
5. Mode of Delivery
35 Lecture hours
2 Discussion groups
Preparation of a Business Plan by students
6. Instructional Materials and/or Equipment
Computer
Access to the Internet
Calculator
KBT 312: Agrienterprise Development Lecture Notes Page 2
,7. Course Assessment
The Final examinations will constitute 70% of the total marks while the continuous assessment tests will
constitute 30% (2 sit in CATs and 1 Assignment).
These marks shall be translated into literal grades as:
70% and above =A
60% and above but less than 70% =B
50% and above but less than 60% =C
40% and above but less than 50% =D
Below 40% = F (fail)
8. Core Reading Materials
a) Barringer, B.R. and Ireland, R.D. (2012). Entrepreneurship: Successfully Launching New Ventures, 4th
Edition. Pearson.
b) Kilimo Trust. Report on Regional Workshop and Policy dialogue. Development of Agro-industries and
Agro-enterprises in EAC Region.
c) The World Bank, (2003). Promoting Agro-Enterprise and Agro-Food Systems Development in
Developing and Transition Countries.
d) World Bank Group (2009). Agribusiness Incubation Training Manual.
9. Recommended Reference Materials
a) Fayolle A (2007). Entrepreneurship and new value creation. Cambridge, Cambridge University Press
b) Frederick, H., O’Connor, A. and Kuratko, D.F. (2013). Entrepreneurship: Theory, Process, Practice, 3rd
Edition. Cengage Learning.
c) Hougaard S. (2005). The business idea. Berlin, Springer
d) Keller, K. L, (2006). Marketing Management, 12th Ed. Pearson Prentice Hall. ISBN 0-13-145757-8
e) Ledic, B. (2002). Five Successful Marketing Techniques. Retrieved from: http://www.business
knowhow.com/marketing/5marktech.htm.on.
f) Porter, Michael (1998). Competitive Strategy (revised Ed.). The Free Press. ISBN 0-684-84148-7.
KBT 312: Agrienterprise Development Lecture Notes Page 3
, LECTURE 1: NATURE AND SCOPE OF BUSINESS/ENTERPRISE
1.1 Human activities
Every human being is engaged in one activity or the other. It may be cultivating land, preparing food, playing
football, reading storybooks, studying in a school, teaching in a college, working in an office, jogging in the
park and so on. If you try to ascertain as to why individuals engage themselves in one activity or the other, you
will find that by doing such activities they are trying to satisfy some of their needs or wants. All these activities
which human beings undertake to satisfy their needs or wants are called human activities.
However, even if all human activities satisfy the needs and wants, they differ among each other in terms of
the purpose for which they are undertaken and the end result. For example, let us take the activity of
preparing food – one prepared by a mother at home for her family and the other by a cook in a hotel. Here
you will notice that the purpose and end result of the activity of preparing food (a) by a mother and (b) by a
cook varies. In the first case, the purpose is to feed the family members without any expectation of monetary
return while in the second case, cooking food is a part of his job so as to earn money in terms of salary or
wage. The end result in the first case is ‘self-satisfaction’ and looking after the family, while in the second case
it is ‘earning money’ for livelihood.
The human activities that are undertaken with an objective to earn money or livelihood are called economic
activities. Whereas the other types of activities that are undertaken to derive self-satisfaction, are called non-
economic activities. A farmer growing crops, a worker working in a factory for wage/salary, a businessman
engaged in buying and selling of goods are examples of economic activities. While activities like meditation,
engaging in sports for physical fitness, listening to music, providing relief to flood victims etc., are examples of
non-economic activities.
1.2 CLASSIFICATION OF ECONOMIC ACTIVITIES
An Economic activity can be a one-shot affair or a continuous one. For example, you know how to stitch
clothes and one day you stitch a shirt for your friend and he pays some money to you. Of course, this is an
economic activity as you have some monetary gain but it is a one-shot affair. But, if you start stitching shirts
on a continuous basis and charge money for that, you are said to be engaged in some continuous or regular
economic activity.
It may be noted that by getting themselves engaged regularly in a particular economic activity people try to
earn their livelihood. So, the activities in which individuals engage themselves on a regular basis and earn their
livelihood are known as their ‘occupations’.
In fact everyone is engaged in one occupation or the other, and these can be broadly categorized as;
(a) Profession;
(b) Employment; and
(c) Business.
Let us know a few more details about these occupations.
1.2.1 PROFESSION
You are aware of doctors. What are they and what do they do? They are basically individuals who have a
special knowledge and training to examine the patients, find out the ailment, if any, and then treat them to be
cured from such ailment. And, for doing all these they charge a fee from patients. Similarly, we have Chartered
Accountants who specialize in matters related to accounts, taxes etc. and help people and organisations for
such jobs for a fee. If we look further, we find Engineers, Architects, Film-stars, Dancers, Artists and many
others engaged in their own field having specialised knowledge and training. They are all known as
professionals and the activities they are engaged in are called profession.
KBT 312: Agrienterprise Development Lecture Notes Page 1
DEPARTMENT OF AGRICULTURAL ECONOMICS
COURSE OUTLINE
1. Course Code: KBT 312
Course Title: Agri-Enterprise Development
Duration: 35 Hours
Program: Regular – BSc (Agribusiness Management and Trade)
Regular – BSc (Dryland Agriculture and Enterprise Development)
Period: Semester 1 2019/2020
Lecturer: Patrick Mugo (0723525319)
2. Purpose of the Course
The purpose of this course is to enable students to learn the key elements of entrepreneurship, enterprise
planning, and promotion discourses towards Agri-enterprise Development.
3. Expected Learning Outcomes
By the end of the course, the student will be expected to:
a) Explain the concept of Agri-entrepreneurship management and development.
b) Develop, assess and evaluate business ideas and opporutunities.
c) Discuss emerging dimensions in Agri-enterprise promotion.
d) Examine key issues and opportunities in Agri-enterprise industry.
4. Course Content
Lecture Duration
Topic of Discussion
Week/Topic (Hours)
Nature and Scope of Business Enterprise
1 Nature, Scope, Importance, Objectives of Business Enterprises 3
Classification of Business Enterprises
Nature and Scope of Agri-Enterprise
2 3
Definition, Scope and Importance of Agrienterprises
The Nature of Entrepreneurship
Meaning of Entrepreneurship
Characteristics, Types and Functions of Entrepreneur
3 3
Role of Entrepreneurship in Economic Development
Entrepreneurial Failure
Rewards and Challenges of an Entrepreneur
Forms of Business Organisation
Sole proprietorship, Partnership; Co-operative Society, Company, Limited
4 3
Liability Partnership
Choice of form of Organisation
KBT 312: Agrienterprise Development Lecture Notes Page 1
, Setting Up a Small Business
5 Exploring Opportunities 3
Preparing a Plan of Action
Developing Ideas and Business Opportunities
New Idea Sources
Techniques of Generating Ideas 2
6
Idea Assessment and Opportunity analysis
Idea Evaluation
Continuous Assessment Test 1 1
Business Planning
Meaning and Functions of a Business Plan
7 Who writes and who reads a Business Plan 3
Writing a Business Plan
Business plan for a Startup
Value Chain Approach (VCA) and Farmer Enterprise Groups (FEG)
Meaning and Objectives of VCA
Reward of VCA
8 3
Steps in Building VC
Meaning and Importance of FEG
Formation, Functions and Responsibilities of FEG and Clusters
Contract Farming and Business Incubators
Definition, Models and Types of Contract Farming
9 Incentives and Disincentives and Success factors in Contract Farming 3
Definition and Features of Business Incubators
Opportunities and Constraints of Business Incubators
Agri-Enterprise Support Services and Institutions In Kenya
10 Agrienterprise Support Services in Kenya 3
Agrienterprise Institutions in Kenya
Key Issues in Agri Enterprise Industry in East African Community
Status and Feature of Agro-Industry in EAC
11 3
Key Opportunities in Agrienterprise Development
Opportunities for Regional Cooperation
Continuous Assessment Test 2 1
12
Wrap – Up and Revision 1
Total 35
5. Mode of Delivery
35 Lecture hours
2 Discussion groups
Preparation of a Business Plan by students
6. Instructional Materials and/or Equipment
Computer
Access to the Internet
Calculator
KBT 312: Agrienterprise Development Lecture Notes Page 2
,7. Course Assessment
The Final examinations will constitute 70% of the total marks while the continuous assessment tests will
constitute 30% (2 sit in CATs and 1 Assignment).
These marks shall be translated into literal grades as:
70% and above =A
60% and above but less than 70% =B
50% and above but less than 60% =C
40% and above but less than 50% =D
Below 40% = F (fail)
8. Core Reading Materials
a) Barringer, B.R. and Ireland, R.D. (2012). Entrepreneurship: Successfully Launching New Ventures, 4th
Edition. Pearson.
b) Kilimo Trust. Report on Regional Workshop and Policy dialogue. Development of Agro-industries and
Agro-enterprises in EAC Region.
c) The World Bank, (2003). Promoting Agro-Enterprise and Agro-Food Systems Development in
Developing and Transition Countries.
d) World Bank Group (2009). Agribusiness Incubation Training Manual.
9. Recommended Reference Materials
a) Fayolle A (2007). Entrepreneurship and new value creation. Cambridge, Cambridge University Press
b) Frederick, H., O’Connor, A. and Kuratko, D.F. (2013). Entrepreneurship: Theory, Process, Practice, 3rd
Edition. Cengage Learning.
c) Hougaard S. (2005). The business idea. Berlin, Springer
d) Keller, K. L, (2006). Marketing Management, 12th Ed. Pearson Prentice Hall. ISBN 0-13-145757-8
e) Ledic, B. (2002). Five Successful Marketing Techniques. Retrieved from: http://www.business
knowhow.com/marketing/5marktech.htm.on.
f) Porter, Michael (1998). Competitive Strategy (revised Ed.). The Free Press. ISBN 0-684-84148-7.
KBT 312: Agrienterprise Development Lecture Notes Page 3
, LECTURE 1: NATURE AND SCOPE OF BUSINESS/ENTERPRISE
1.1 Human activities
Every human being is engaged in one activity or the other. It may be cultivating land, preparing food, playing
football, reading storybooks, studying in a school, teaching in a college, working in an office, jogging in the
park and so on. If you try to ascertain as to why individuals engage themselves in one activity or the other, you
will find that by doing such activities they are trying to satisfy some of their needs or wants. All these activities
which human beings undertake to satisfy their needs or wants are called human activities.
However, even if all human activities satisfy the needs and wants, they differ among each other in terms of
the purpose for which they are undertaken and the end result. For example, let us take the activity of
preparing food – one prepared by a mother at home for her family and the other by a cook in a hotel. Here
you will notice that the purpose and end result of the activity of preparing food (a) by a mother and (b) by a
cook varies. In the first case, the purpose is to feed the family members without any expectation of monetary
return while in the second case, cooking food is a part of his job so as to earn money in terms of salary or
wage. The end result in the first case is ‘self-satisfaction’ and looking after the family, while in the second case
it is ‘earning money’ for livelihood.
The human activities that are undertaken with an objective to earn money or livelihood are called economic
activities. Whereas the other types of activities that are undertaken to derive self-satisfaction, are called non-
economic activities. A farmer growing crops, a worker working in a factory for wage/salary, a businessman
engaged in buying and selling of goods are examples of economic activities. While activities like meditation,
engaging in sports for physical fitness, listening to music, providing relief to flood victims etc., are examples of
non-economic activities.
1.2 CLASSIFICATION OF ECONOMIC ACTIVITIES
An Economic activity can be a one-shot affair or a continuous one. For example, you know how to stitch
clothes and one day you stitch a shirt for your friend and he pays some money to you. Of course, this is an
economic activity as you have some monetary gain but it is a one-shot affair. But, if you start stitching shirts
on a continuous basis and charge money for that, you are said to be engaged in some continuous or regular
economic activity.
It may be noted that by getting themselves engaged regularly in a particular economic activity people try to
earn their livelihood. So, the activities in which individuals engage themselves on a regular basis and earn their
livelihood are known as their ‘occupations’.
In fact everyone is engaged in one occupation or the other, and these can be broadly categorized as;
(a) Profession;
(b) Employment; and
(c) Business.
Let us know a few more details about these occupations.
1.2.1 PROFESSION
You are aware of doctors. What are they and what do they do? They are basically individuals who have a
special knowledge and training to examine the patients, find out the ailment, if any, and then treat them to be
cured from such ailment. And, for doing all these they charge a fee from patients. Similarly, we have Chartered
Accountants who specialize in matters related to accounts, taxes etc. and help people and organisations for
such jobs for a fee. If we look further, we find Engineers, Architects, Film-stars, Dancers, Artists and many
others engaged in their own field having specialised knowledge and training. They are all known as
professionals and the activities they are engaged in are called profession.
KBT 312: Agrienterprise Development Lecture Notes Page 1
