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Type : Research Article

Constraints faced by Agri-Startups Entrepreneurs in Andhra Pradesh State

Kakara Aneesha, Somasekaran Subash, M.C.A. Devi and Muniandy Sivaram4

Abstract

Agri-startups are disrupting the agriculture value chain by offering a desirable blend of credibility, efficiency, and transparency. The present study was undertaken to assess the perceived constraints faced by Agri-Startup entrepreneurs during normality and due to Covid-19 lockdown in Andhra Pradesh. With a total of 44 Agri-Startups, the study was carried out using a multistage stratified random sampling procedure. There were 24 Startups in agri-tech, 9 in organic farming, 8 in food processing, and 3 in dairy farming sectors. The results of this study clearly demonstrated that inadequate incentives offered by government, inadequate scalable technologies for commercialization, difficulty in attracting investor funds and non-availability of labour notably during the covid-19 epidemic were the obstacles addressed by the majority of Agri-Startups. Agripreneurs demanded crucial support services from the Agri-Startup ecosystem players such as guidance and mentorship help, goods and service tax exemptions and incubation support. If the epidemic persists, over one-third of Startups would fail to operate their businesses with the available funding, with the majority only being able to do so for a short period of time. At this point, it is crucial to abandon the status quo and make use of real-time data to protect Startups from severe crisis and encourage entrepreneurship in the agricultural sector. Key words:

Keyword: Agri-Startups; Constraints; Covid-19; Andhra Pradesh

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