Young people hoping to venture into agribusiness have been advised to consider starting their businesses independently on a small scale rather than immediately entering partnerships with friends, particularly when they lack clear arrangements for sharing responsibilities, managing losses and accounting for investments.
Executive Director of the Centre for Climate Change & Food Security (CCCFS) and Director of the West African Journalists for Environment, Science, Health and Agriculture (WAJESHA), Engr. Mahmud Mohammed-Nurudeen, says business partnerships, although potentially beneficial, can strain friendships when partners do not have equal access to information about the operations and financial performance of their businesses.
He gave the advice while responding to a question about starting a business and the challenges of entering partnerships during an Agribusiness Incubation Workshop organised by residents of Jacob Jonas Nortey Hall at Valley View University’s Oyibi campus.
“If you want to keep your relationship and integrity, do not go into agribusiness partnership with your friends. Start alone in a small way and grow,” he advised.
According to him, the problem with some partnerships is that one person ends up carrying most of the responsibility while the others remain largely disconnected from the daily operations of the business.
He said this arrangement could create suspicion, particularly when the person managing the business begins reporting losses, unexpected expenditure or operational challenges that the other partners have not personally witnessed.
“If you are there alone, they won’t believe the stories you tell them,” he cautioned.
Engr. Mohammed-Nurudeen explained that agribusinesses, especially poultry farms, are exposed to several uncertainties, including disease outbreaks, fluctuating production costs, market conditions and unfavourable weather.
He said partners must therefore be actively involved and regularly informed about developments on the farm, including profits, losses, operational difficulties and the effects of adverse weather conditions.
“Ensure everyone is involved. Let everyone know what happens on the farm, the gains, losses, the bad weather, etc.,” he stressed.
When friendship meets business
Drawing on his experience training and guiding young people interested in agribusiness, the climate and agricultural development expert said he had witnessed partnerships collapse because of mistrust and disagreements over money.
He cited cases involving graduates he had trained who ventured into poultry production together but eventually fell out and abandoned their businesses because each partner suspected the others of cheating.
“I know graduates I trained who went into poultry business but later fought and dispersed because each thought they were being cheated,” he recounted.
He warned that financial disagreements between friends could extend beyond the business and damage relationships that had existed for years.
In some instances, he said, a friend who feels cheated over an unpaid investment could resort to publicly accusing the other partner on social media, further complicating an already difficult situation.
For him, the potential consequences make it important for young entrepreneurs to carefully consider the implications of mixing friendship with financial commitments.
Partnerships are not entirely discouraged
Although he recommends starting independently, Engr. Mohammed-Nurudeen clarified that he was not opposed to business partnerships.
Rather, he believes partnerships are more appropriate when an entrepreneur has established a business, understood its operational demands and reached a stage where additional investment, expertise or resources are needed to expand.
“Partnership can come when you want to expand,” he said.
His advice forms part of continued message to young people that agribusiness requires entrepreneurs to identify opportunities, understand the market, build useful relationships and develop the discipline needed to manage their businesses.
At the same workshop, he had urged young people not to wait until they accumulated substantial start-up capital before exploring opportunities across the agricultural value chain, arguing that identifying the right people and building networks could be just as important as money.
The workshop, held under the theme “Developing the Anti-Fragile Mindset: Agribusiness as a Catalyst,” explored opportunities for young people to establish sustainable businesses within the agricultural sector.
For aspiring entrepreneurs, he says starting small can be a deliberate way of protecting relationships, maintaining accountability and building a business strong enough to accommodate partnerships in the future.
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