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Elements for Successful Business
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Why Buyer-Seller Linkages are Needed
Identifying Market Opportunities
Selecting Suitable Enterprises
Selecting Suitable Locations
Selecting Linkage Partners
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Forming and Managing Producer Groups
Designing Buyer-Seller Contracts
Designing Product Pricing Systems
Performance Monitoring and Recording
Non-Quantifiable Outcomes
Alternative Linkage Models
Providing Services to Smallholders
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EXAMPLE OF AN UNSUITABLE LOCATION CHOICE


Farmers in a village close to a major town in Northern Tanzania were encouraged to grow paprika chillies for sale to a horticultural export company. There are several other profitable agricultural enterprises to which farmers have access in this area - coffee, dairy, fresh vegetables for internal markets - but there is little unused land or labour. Though many farmers initially accepted and planted chilli seed, their interest in the crop declined rapidly when they saw how much work its cultivation involves, particularly for drying, and how low the profit margin is compared to other less labour-demanding enterprises. Now scarcely a chilli can be seen in the village.

Analysis:
Though the enterprise would have been appropriate to smallholders in other locations, in this location there was not enough spare land or labour, and smallholders were not interested in producing a difficult and labour-demanding crop when they had easier alternatives, so the enterprise failed.

Related Information: An Example of Suitable Location Choice

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Natural Resources Institute 2003