Performance of spice-based enterprises facilitated through Agri- Business Incubators (ABI)

T. Ashwini, S. Lokesh, Binoo P. Bonny


Many agricultural institutes have initiated Agri-Business Incubators (ABI) aimed at venture creation in agriculture. The paper analysed the performance of spice enterprises promoted through ABI associated with ICAR - Indian Institute of Spices Research (IISR), Calicut. The results detailed the socio-economic characteristics of entrepreneurs who graduated from the ABI and described their product and technological profile. The results showed that the majority of enterprises were in the nascent stage and needed technical and financial support to expand further. Spice powder technology from the ABI was used by most enterprises and were selected for in-depth economic feasibility analysis using the breakeven point (BEP) method. Average units of production for a breakeven point were estimated at the production of 500 units’ stage, and total cost of Rs 150000 wherein the enterprises were considered operational at profitable levels. The relatively small size of BEP confirmed the feasibility of spice powder technology for small and micro enterprises. The findings suggest that the entrepreneurs who completed the business incubation program had a greater success irrespective of the business size. The results hold policy implications in promoting ABIs as technology facilitators in entrepreneurship development in agriculture.


Agribusiness Incubator (ABI); Agripreneurship, Performance analysis, Break-even analysis

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A KAU publication [CODEN: JTAGEI; ISSN 0971-636X; eISSN 0973-5399]