Producer Collectives: What Are We Missing Out?
It is widely recognised that small disaggregated producers need to come together and work as a collective enterprise. The performance of these organisations has been mired in a variety of constraints. This chapter argues that these collective enterprises work within some (i) Economic Conditions defining the business model; (ii) Organisational Design Conditions for efficient functioning and balancing governance; (iii) Socio-Economic Conditions and (iv) Institutional Conditions. An appropriate balance of all these conditions is necessary for these collective enterprises to function.
Emphasising the need for local entrepreneurs to take charge of these organisations, this chapter argues that leading a producer collective requires the ability to strike commercial deals rapidly and lead diverse producer groups. The chapter argues that this requires entrepreneurial ability in addition to leadership. Often in the process of ‘promoting’ FPOs, the ability of the local leader-entrepreneur is not allowed to flourish.
KeywordsCo-operative Entrepreneurship Dynamic commercial world Small and large farmers
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