Preface Livestock production at global level is at crossroads. Demand of Livestock products such as milk and milk products, eggs and meat are on the rise in developing world including India. This demand has increased considerably in recent years and has a strong potential for growth. Currently majority of this demand is met through smallholder livestock production system where livestock keeping is a subsistence activity. However, to meet ever-growing demand of livestock products livestock farming must be taken up as a business enterprise form. Infact, entrepreneurship initiatives have been key drivers of employment, wealth generation and growth worldwide. Entrepreneurship skills involve set of managerial skills and entrepreneurial attitude to start and run a business effectively. The present book covers such major Livestock entrepreneurship skills in simple and lucid form. The first chapter of the book focuses on concept of entrepreneurship, personal skills of entrepreneur such as innovation, risk taking, accepting challenges and responsibilities. The second chapter of the book covers the different enterprising opportunities in livestock sector. In subsequent chapters forms of Livestock business, several factors to initiate a livestock business, bank support for entrepreneurship, entrepreneurial training, preparation of livestock entrepreneurial projects, project appraisals, financial management, sales and marketing communication, business acumen and communication have been covered. The textbook has been designed based on latest guidelines of Veterinary Council of India and is extremely useful to graduates of veterinary science who otherwise have least exposure to principles of entrepreneurship. This book is also beneficial to undergraduate and postgraduate students of Veterinary Science, animal husbandry who wish to pursue livestock based entrepreneurship. This book would also benefit veterinarians and animal science professionals, extension officers engaged in promotion of livestock entrepreneurship activities in India as well as other developing countries. The subject matter of the book has been graded in an easy understandable form so that undergraduate and postgraduate students as well as teachers and research scholars and those having interest in livestock entrepreneurial activities would benefit from this book. We sincerely acknowledge the help taken in writing of thisbook from various research articles, reports, journals, books and magazines. We are thankful to Dr Alok Sharma Professor & Head, Department of Veterinary and Animal Husbandry Extension, CSKHPKV Palampur for his active support in writing the book. The authors also feel obliged to New India Publishing Agency for bringing out this work in a short period.

Entrepreneur The word “Entrepreneur” is derived from the French verb ?Entreprendre?. It means ?to begin something? or ?to undertake?. In the early 16th century the Frenchmen who organized and led military expeditions were referred as ?Entrepreneurs?. In the early 18th century French economist Richard Cantillon used the term entrepreneur to business. Since that time the word entrepreneur means one who takes the risk of starting a new organization or introducing a new idea, product or service to society. An entrepreneur is a person who starts an enterprise. He has right to own his business and to make a profit. Some economist says that entrepreneur is one who is willing to bear the risk of a new venture if there is a significant chance for profit. Others emphasize the entrepreneur?s role as an innovator who markets his innovation. Still other economists say that entrepreneurs develop new goods or processes that the market demands and are not currently being supplied. Different researchers have elaborated qualities of Entrepreneurs. Schumpeter said that entrepreneurs are innovators who use a process of creative destruction of the established ways of creating/doing existing products and services, to set up new products, new services. David McClelland proposed that an entrepreneur is a person with a high need for achievement. He is energetic and a moderate risk taker. Peter Drucker said that an entrepreneur searches for change, responds to it and exploits change as an opportunity. In the words of Albert Shapero, Entrepreneurs take initiative, accept risk of failure and have an internal locus of control. Entrepreneurship as explained by various scholars laid emphasis on a wide spectrum of activities such as self employment of any sort, creation of organizations and innovation.

Livestock entrepreneur is a person who undertakes livestock based activities such as livestock rearing, production of livestock/ livestock products, processing and other inputs of livestock business. He finds ways and means to create and develop a profitable livestock business. Livestock entrepreneurs see their farming as a business and as a means of earning profits. So they are willing to take calculated risks to make profits and to grow their businesses. They are also motivated to improve livestock production through mechanization and application of technologies in the field of dairy, small ruminant, poultry and allied enterprises. Livestock entrepreneur is determined and creative person, always looking for opportunities to improve and expand his business. He likes to take calculated risks, and assumes responsibility for both profits and losses. An entrepreneur is passionate about growing his business and is constantly looking for new opportunities.Enterprising farmers are also innovators. They always look for better and more efficient and profitable ways to do things. Being innovative is an important quality for a farmer-entrepreneur, especially when the business faces strong competition or operates in a rapidly changing environment. They look for better ways to organize their farms. They try, better animals, and alternative technologies to increase productivity, diversify production, reduce risk and to increase profits.

Techno economic feasibility of livestock enterprises under different conditions The technical and economic feasibility part examines the possible technical and economic aspects of a proposed livestock project. In this chapter we would be studying techno economic feasibilities of various livestock based enterprise 1. Technical and Economic Feasibility of a Dairy unit 2. Technical and Economic Feasibility of a Goat Farm 3. Technical and Economic Feasibility of a Pig Farm 4. Technical and Economic Feasibility of a Feed unit

Once entrepreneurship is decided upon, there are three main routes an entrepreneur may follow. He can start a new livestock business, he can also purchase an existing livestock business or he can take over a family livestock business. In the first case the entrepreneur begins from scratch on all his own ideas, as there are no existing problems or concerns from a previous owner. He has the freedom to start the business in his own way. However, the risk is higher and he has to devote time, effort, and money—especially for startup expenses such as equipment, building, etc. When the entrepreneur purchases an existing business he has advantages of smaller startup costs and building on the existing goodwill or loyalty of established customers. This option is good if the entrepreneur does not have a great deal of business experience. Disadvantages might include inheriting existing problems such as poor location, stiff competition, fluctuating market, equipment problems, and poor reputation. In the third instance an entrepreneur takes over family business. In this situation, an entrepreneur has the support and training available from the family members, creating trust and togetherness that bonds the business as one entity. Maintaining separate family and business relationships is the biggest obstacle to overcome, making it difficult to get away from the business. Personality conflicts, different interests, changed values, and burnout are a few reasons that familyowned businesses don?t survive to the second generation. A person who grows up in the family business may be ready to spread his or her wings and explore new career aspirations.

Demand of livestock products is on the rise in India. India?s demand forecast for milk, mutton, egg production is more than the current supply of these products. To meet this demand entrepreneurship initiatives are need of the hour .Further, younger generation of India seems more interested in commercial dairy farming rather than subsistence based farming. Therefore, entrepreneurial training to farmers is essential. An average entrepreneur faces several barriers to start a new enterprise. Some of them are as under

Setting up livestock enterprise be it a small dairy unit, goat unit, milk and meat processing plant, selling parlor requires capital. Lack of access to credit to expand the herd is a critical problem for farmers. There is little access to formal credit through the cooperatives or banks. Informal credit is available from private traders and agents of private companies, but the interest rate is very high. Keeping this situation in mind and to provide financial support from banks few major dairy entrepreneurship schemes have been developed and implemented by banks with the support of state animal husbandry departments across different parts of the country. National Bank on Agriculture and Rural Development (NABARD) is the lead bank for financial support of such schemes.

Expectations from Veterinarian as Extension Officer to Promote Entrepreneurship The veterinarian has to act as facilitators to exchange experiences, share knowledge and information and participate in joint problem-solving. This requires linking farmers with the right support institutions and individuals who have expertise to deal with their specific concerns. Therefore, extension workers need to understand the training needs of the farmers and to identify the best trainers or training institutions to meet those needs. Part of this involves creating awareness about the training programme and explaining the objectives and content to potential trainees. Extension workers should also assess the impact of the training on the behaviour of the participants and on the farm business Impact assessment is essential because it is the true indicator of the relevance and effectiveness of the training programme. Extension workers can also provide more general support in the form of study visits, study tours. Farmers observe ?good entrepreneurial practices?, and learn from the practices of others. Farmers are taken on a tour. See markets first-hand, visit input suppliers and buyers, and make contacts. Farmers also visit farmers in other areas to exchange experiences and see new techniques. Such visits can transform a farmer?s view on production and marketing. Visits should be followed up with periodic evaluations to assess the impact of the visit and the use of new practices and techniques. They can also arrange seminars with possible topics like entrepreneurship, farm business management, market possibilities, successful case studies, new technologies, price assessments and market-oriented production techniques. Extension workers can also facilitate farmers working with producer organizations. Producer organizations can make useful contributions to developing entrepreneurship among farmers.

Livestock rearing is central to livelihoods and survival of millions of people of India. It is estimated that approximately 100 million people derive their livelihood from livestock rearing as primary or secondary source of income. Livestock related activities help to maintain regular in flow of income for these households. Small farmers in India generate nearly half of their income from livestock and the value of cattle represents a significant part of their wealth, so the death of cattle poses a significant risk and affects farmers? net worth and income. Type of Risks to Livestock based Livelihoods Large animals are expensive and thus carry higher risk exposure. These risks are in form of losses due to the disease, accident, theft, natural calamity which can cause significant losses to these households. Sometimes owners are forced to sell their animals due to incurable disease/ disorder/ fodder and water scarcity and later they are unable to rebuild their stock. Many times animal losses force them into poverty trap from where they are unable to recover.

Livestock rearing provides triple benefits of income, employment and nutritional security to the society and is important source of subsidiary income to small/marginal farmers and agricultural laborers. Finance is a prerequisite and of paramount importance for setting up of a livestock enterprise whether a dairy farming unit for milk production, sheep or goat unit, piggery unit, dairy/poultry processing unit etc. Provision of credit/loans for the purchase of livestock, feed, veterinary services and insurance against the loss of valuable productive assets play an important role in encouraging new investments in the sector and also in coping with difficult problems such as draught and diseases. Decisions about credit are often most important judgments that people in the livestock enterprise must make. These decisions often determine whether individuals operating in input, production, processing and services based livestock enterprise would succeed in making profit.

Project Appraisal : Assessing Project Benefits Project appraisal helps to determine which among various projects one is to accept and which to reject. This is however possible only when costs and benefits have been identified, priced, and valued. A number of techniques of project appraisal can be discussed under two heads :

Marketing channel can be defined as the path that a livestock commodity follows from the farmer?s gate to the consumer?s plate. A marketing channel involves a set of separate but interdependent organizations involved in the process of making a product available to consumers. Importance of Marketing Channels 1. Little attention by companies or enterprises to marketing channels may damage profit, brand and number of customers. 2. Companies can change their products, advertising and pricing easily but it is not easy to change marketing channels. 3. Marketing channels are particularly convenient when the producer does not have time or financial means to carry out direct marketing. 4. Intermediaries in marketing channels are usually able to make the product widely available and accessible because they are specialized, have experience and contacts. They also have a better understanding of the market. Intermediaries take the risks involved in marketing and also pay for the produce immediately.

Standardization Standardization means establishment of standards for matters such as quality, size, weight and color. Once standards are set grading is possible using the criteria established in the standards. Thus, standardization involves establishment and maintenance of uniform measurements of produce quality and/or quantity. Grading Grading follows standardization. It is a sub-function of standardization. It is a method of dividing products into certain groups or lots in accordance with predetermined standard. Grading before sale enables farmers to get a higher price for their produce .Consumer get standard quality products at fair prices. It is easier for them to compare the prices of different qualities of a product in the market. It minimizes their purchasing risk, for they will not get a lower quality product at the given prices .e.g. eggs are graded into different categories based on set standards. Similarly cattle feed is also sometimes categorized into different grades based on established standards.

Sales management as the term implies means management of sales. Initially the concept consisted of managing the sales workforce. Now-a-days, it includes managing of all the sales related activities like advertising, sales promotion, physical distribution, pricing and product merchandising.