Entrepreneurship Development Report: Organic Vegetable Business Plan

This report outlines a business plan for an organic vegetable venture in the UK, focusing on the production of beetroot, cabbage, kale, and Brussels sprouts. The report details the opportunity formation, emphasizing the growing demand for organic foods and the potential for supplying both local and international markets. It analyzes market opportunities, including competitive pricing, market surveys, and financial projections. The venture aims to utilize advanced machinery, restrict pesticide use, and implement online ordering services. Challenges such as securing loans, potential network issues, and competition are also addressed. The report highlights the benefits of government support, technological advancements, and compliance with organic farming standards. The overall goal is to establish a successful and sustainable organic vegetable business that meets the rising consumer demand for healthy food options.

ENTREPRENEURSHIP
DEVELOPMENT

Table of Contents
Section 1: Introduction and proposed development of idea.............................................................3
Section 2: Opportunity Formation...................................................................................................4
Section 3: Opportunity Development..............................................................................................6
Section 4: Conclusion & Recommendation ....................................................................................9
REFERENCES..............................................................................................................................10

Section 1: Introduction and proposed development of idea
Entrepreneurship is the process of developing, organizing and managing a business to
earn profit by engaging labour, land, natural resources and capital. It is the conversion of idea
into a new business venture by considering the associated risks. Entrepreneurship requires
innovative ideas in order to survive the competition in the market. This report is about creating a
new venture in the field of agriculture of vegetables in United Kingdom. In this report, the
process to develop a new venture, the opportunities formation and development for the venture
and the outcomes of the venture have been discussed.
Agriculture has a major contribution in the UK economy. Before Brexit, the agriculture
sector was operated by Common Agricultural Policy by EU. Post Brexit, the UK need new
policies for agriculture department. In 2005, UK agriculture sector has contributed approx.
£24bn of revenues and £8.5bn of Gross Value Added (GVA) to the economy, 475,000
agricultural jobs and 30,000 jobs due to supply chains were created. The UK agriculture sector is
a major exporter of its products to Irish Republic, Germany, France and Netherlands (Alsos,
Carter and Ljunggren, 2011).
As the agriculture sector is a major contribution to the economy, therefore a new business
venture could be a success. The venture will producing beetroot, cabbage, kale and brussels
sprouts. It will be a small sized venture that will grow 100% organic vegetables by restricting the
use of pesticides. It will follow the safety and health guidelines of the government for organic
vegetables. The whole process of supply of vegetables in UK or outside the UK will be tracked
online. The major crops will be beetroot and cabbage as the demands of these two vegetables are
more in domestic as well as in international market.
The new venture will use advanced machineries, restricted use of pesticides to restore the
organic element and fertilizers. Firstly, the land will be acquired which will be divided into four
sections. This will be done by taking loan from government organization. Before starting the
business venture, entrepreneurial guidance will be taken from National Federation of Young
Farmers' Clubs (NFYFC) and Savills. Secondly, the seeds of various vegetables will be
purchased and sown. Thirdly, various wholesalers will be contacted to buy the vegetables.
Venture will be supplying to both local and supermarkets in UK. It will also export to the
countries where there is a high demand of these vegetables. Lastly, the company will try to

maintain the level of vegetables equal to the demand in order to save it from cold storage for
long days (Audretsch, 2012).
Section 2: Opportunity Formation
The vegetables that will be produced are cabbage, beetroot, kale and brussels sprouts.
The amount of pesticides will be restricted in order to make the vegetables organic. Along with
this, cold storage facility will be provided to other farmers by charging a monthly charge
depending on the quantity of the vegetables. It will also provide an online service to its
customers to give orders online (Berglund, Johannisson and Schwartz, 2012).
The venture could face many problems such as use of high amount of pesticides when
there are chances of the crop being damaged, getting the loan approved for buying land and
machineries, online facility could be disrupted due to the network issues in agricultural areas, the
agricultural lands are situation in rural areas only. Further, the problem of not getting sufficient
number of buyers of the vegetables, the supermarkets may not be interested in the deal, damage
to the vegetables being perishable goods etc. Every new business venture face problems in the
initial phase and some problems may exist after the initial phase is over. The problems that the
business could face is to be competitive to survive in the market, whether to expand the business
or not in order to grab a large market share, change in the policies with the change in the external
environment, shortage of resources in special occasion or when the demand is too high and the
time to meet the demand is limited.
 High amount of pesticides: There may arise situations when the amount pesticides
needs to increased. One of such situations is when the crop has started to damage
by insects and such damage can be prevented only by increasing the quantity of
pesticides to be sprayed on the crops. The most important requirement of organic
cultivation is to use the pesticides in a reduced quantity.
 Loan: To start a agriculture business, one may need loans from the government to
buy land and machineries (Bernhard and O'Driscoll, 2011). The approval to loan
could take number of months causing delay in the whole process of starting the
venture. Also there is no guarantee that the loan will approved. In case the loan
approval gets rejected, a new loan application has to be made which will again be
a lengthy process.

 Online service: The idea is to provide a online service for placing orders. Network
may not always be fine due to the agricultural land situated in the rural area. Since
this facility is one of the highlight of the business other than the organic element,
disturbance in online services could be a big hurdle in the business activities.
 Transportation: The main motive of this venture is to provide organic vegetables
in the market, for which the vegetables are required to be kept fresh. The venture
aims to reduce the time of storing in the cold storage. This can be achieved only if
the transportation of the vegetables to the specific destination is on time.
The idea of organic vegetables will be a success as people are turning to healthy foods
(Bosma, 2013). The increase in the obesity, heart problems, diabetes and other problems made
realise the people to change their lifestyle. The competition for organic vegetables is high in the
market as it is a new concept, therefore, providing organic vegetables at competitive prices could
fetch a great profit. The venture can supply its products to supermarkets as supermarkets are
more interested in organic vegetables as compared to local market. It can set a price which the
customers are willing to pay and the price will a little higher than the price of inorganic
vegetables. Since the operations of business will on a small scale it can carry its activities
effectively. The cost will be reduced due the minimum usage of pesticides.
A market survey will help the venture to understand various aspects of the business.
Market survey is done to gather and analyse market data to know about the demands of
consumer, market trends, prices prevailing in the market of similar products, and products sold
by competitors. The market survey has provided the following information:
1. Benefits: Market survey provides the details about the market, consumer demand for the
organic vegetables, prices, competition, opportunities, threats etc. These all benefits the
entrepreneur to start a venture on the basis of the information gathered from market
survey. Before starting a business, it is important to understand various aspects of
market (Bridge and O'Neill, 2012.).
2. Profit margin: The information gathered by market survey will help to determine the
prices and the percentage of profits that can be earned. The profit margin will be set on
the basis of the demand of organic vegetables in the market and the cost incurred to grow
such vegetables. Also the prices of the competitors will be used to calculate the margin

which can be earned. The margin will be changed according to the demand and other
factors.
3. Market demand: The most important reason for which market surveys are conducted is
to know about the consumer demand of the product or service the business of which is
proposed to be started (Brush, 2013). The market demand will help to know the demand
of the customers. No venture can be started without knowing the demand. The price will
depend on the demand. The demand may be changed due to the change in the market
trend therefore the venture should make provisions in order to meet the demand.
4. Target Market: It is very important for the business to target a market. This may include
a geographic region, age group etc. Venture will need to determine and target a market
share in order to supply the products. The market share which has a higher demand of
organic vegetables will be targeted. Targeting the right market share will help to grab
large market.
5. Financial projection: It done to forecast the revenues and expenses that will be generated
or incurred in future. This will be a prediction of external market factors that might
affect the business (Drucker, 2014).
Section 3: Opportunity Development
Now a days it has been seen that people are suffering from various major diseases due to
inorganic and adulterated food. People are getting health conscious which is increasing the
demand for organic foods. It is the right time to start a venture for agriculture of organic
vegetables to meet the growing demands. The business of organic vegetables will make the
company survive in the competition. The chosen pathway for the venture will be a small private
agricultural company. The company will be getting all the benefits of a private company as well
as the assistance from the government. Further the company will provide online services to grow
its business (Durst and Runar Edvardsson, 2012).
The organic vegetables are a quality and healthy products. For achieving these two
criteria the company should follow the guideline and standards for organic vegetables. The main
target of the company will be to maintain the quality so that it does not become inorganic. People
have demand for good quality products because of the foods being adulterated at a great pace in
order to make huge profit. The threat to life from adulterated foods can be reduced by having
organic products.

The company will exports its products to various countries such as US, France, Ireland
etc. which will make the company go globalised. Globalisation will help to expand its business
in other countries. The benefits that the company will be getting are as follows:
 Loan benefits: The agriculture sector is a major contributor in the UK economy.
Therefore the government always encourages this sector. For encouraging, the
government may provide loan assistance in order to meet the goal of the company. The
interest rate of the loan will low as compared to other loans which will not be a burden
for the entrepreneur to repay the amount with interest (Duval‐Couetil, 2013).
 Technological advancement: The company will get subsidies from the government to use
the advance technologies for the farming of crops. The subsidies will provide relief to the
amount subsided by the government and that amount can be used to upgrade the
technology. The upgraded technology will produce the crops at a very competitive price
with the available resources. The organization like NFYFC will provide guidance and
make the advance technologies available to the company. These organizations often make
it easy for the company to carry out its operations effectively and efficiently.
 Compliance: The companies engaged in agricultural activities are required to follow the
standards provided for agriculture. By complying with the various standards the company
can capture a large market share as it will create a trust among the people that company is
following the standards therefore serving the organic vegetables. This will increases the
number of consumers in the market.
 Growing market: People are getting health conscious and choosing organic foods instead
of inorganic food items. The market will keep on growing as the effect of adulterated
food on people's lives will continue to affect. The change in the lifestyle has made this
market grow and in the coming years the demand for organic foods will be high (Goss,
2015). For example, Company A is leading with agriculture field and wants to make
growth, they are viewing past records in order with rectifying services, products etc. They
are linking with pioneer industries which are linking with beginning. This is opt by
company and led growth in market by providing new goods and services of food
products.
 Investment: Organic vegetables is a new concept and the market is growing day by day.
The investors often look for the avenues that have been generated out of an unique

concept . The organic vegetable agriculture will help company get investment from
various investors. Whether to invest or not will depend on the return expected by the
investors. Therefore, the company should work its way to be able to pay the expected
return.
 Online services: The company launch its app for online service. This will help the
company to keep a track of the orders, payment and receipts, goods returned etc. This
will help company to have the details about the order on time. Timely information will
save a lot of costs which could have been incurred in an offline process. This will further
help those customer who can not reach the location physically. The online service will be
available to everyone (Meyer, 2011). For example, Company B wants to make customer
focus on their product and service for making succeeding business. Than company has
started link with them by online transactions and providing services through
communication, emails, messaging and online conferencing. This make youngsters
engagement and focusing them towards product and service.
 Research and development: The company can conduct R&D in house or by a third party.
It will help the company to maintain the quality of its products. The essence of organic
vegetables is its quality. The company should continue R&D on fixed intervals in order
to meet the criteria of quality. For example, person A is consuming goods which came by
various industry sector. Person having quality of attracting new product in market. For
that they are making particular research for the product and providing their view on
company website.
 Exports: The company will export its vegetables to other countries to expand its business.
Exportation will provide new ways to expand the business and earn profit. The export
also depends on the political, cultural, taxation etc. aspects of the country in which the
vegetables will be exported. The venture will need to make proper logistic system to
deliver the products cross border without any hindrance.
Section 4: Conclusion & Recommendation
The entrepreneurship development process has helped in understanding many factors of
how to do a business effectively and efficiently. The whole process is divided into number of
steps which are implemented in order to start and carry a business venture in agriculture of

vegetables. The outcomes of the entrepreneurship development process helped in the following
ways:
 Risk management: A risk is a factor that always exist throughout the life of a company.
The entrepreneurship development process has helped to analyze the potential risks that
can impact the business in a negative way. The risk should be managed as soon as
possible. An entrepreneur search for ways which can reduce the risks so that the company
can survive for a long time without suffering any loss. The management of risks decides
the success of the company (Onetti and et. al., 2012).
 Budget allocation: Before starting a business, entrepreneur should prepare the budgets
that will be required to incorporate the business and carry its activities. Proper allocation
of budget will reduce the wastage of funds in the activities which are not primary. The
budgets are prepared for different areas and activities of the business. Entrepreneurship
process makes the entrepreneur to allocate the budgets according to the requirement.
 Effective management: An entrepreneur becomes a good leader and manager for all those
working in the company. The entrepreneur engage himself in managerial activities to
have a close association with the personnel. The entrepreneurship development process
makes the entrepreneur do the right things which are beneficial to the organization. An
entrepreneur learns how to deal with the situation, performing the activities for achieving
the goals of the organization, build strength in the staffs, focus on one target at a time in
order to achieve it etc. The management depends on the proper segregation of the work.
The process has further helped to set an example in the agriculture sector for growing
organic vegetables by the use of advance technology. The company can take the methods it has
used in agricultural activities in and outside UK. This will help other companies which are about
to start the agricultural business or have already started it. The technologies that have been used
reduced the overall cost to a great extent. The other outcome is that, the company can expand its
business in other countries. This can be done by globalization. The company can hire the
properties on lease in other countries and start their business. All of these factors will help the
UK economy to grow. The agriculture in organic vegetables will create new jobs as the
agricultural process is completely different from the original process. Since the organic sector is

a growing sector therefore the there will be needs of implementation of new techniques to
achieve the improved quality products.

REFERENCES
Book and Journal
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248.
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business. Macmillan International Higher Education.
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Meyer, G. D., 2011. The reinvention of academic entrepreneurship. Journal of Small Business
Management. 49(1). pp.1-8.
Onetti, A., and et. al., 2012. Internationalization, innovation and entrepreneurship: business
models for new technology-based firms. Journal of Management & Governance, 16(3),
pp.337-368.

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