Introduction

The entrepreneurs in the Seafood industry in the early 1980s with some exceptions were mostly individuals who scaled up from traders of seafood products, peeling-shed operators, agents of buyers or executives who worked in the seafood industry before venturing to set up their own units. These units were almost entirely involved in processing block frozen shrimp and a very few, in canned seafood. This industry could be entered with relatively small capital, easy to enter and exit.

In 1982 MPEDA brought in a scheme for the Government to invest in the equity of companies which diversified into value-added products and aquaculture, basically to instigate and give confidence to entrepreneurs and their financing Institutions to venture into newer and risky fields with much larger capital. MPEDA also incentivised the exports of value-added products. The combined effect scaled up the industry to diversify and bring in more capital-intensive units which required additional professionals with specific training in the field-like the MSc Industrial Fisheries, and others.

Like in most nascent industries which disrupted the old established trades, there were many forces resisting this growth. The problems were in the foreign markets and in the local land laws, which put many units to grave financial difficulties. But the more resourceful, existing and new entrepreneurs came out stronger with larger capital and scale of operations into the industry. Today after the 40 years, we see a larger and more mature industry which is diversified into many areas handling seafood.

Starting an enterprise

Prior to starting an enterprise, the following aspects need to be assessed

• Viability of the specific line of activity
• Capital required versus available
• Contacts available and can be made available
• Raw material available and accessible

Understanding of one’s strengths and weaknesses to start the specific line of business in each of the above also helps in taking appropriate decision.

Raising sufficient capital

Several means of raising sufficient capital exist such as equity/own funds, partners, joint ventures, and borrowed funds. The main limitation for first-time entrepreneurs will be finding sufficient equity/own funds. It is also important to earmark some funds for contingencies. When selecting partners losing part of the control may become inevitable at times. Joint ventures with strong parties especially from abroad in the same business is a big advantage, particularly if the venture is part of their backward integration. Borrowing institutional funds from banks and other term lending institutions might be required to complete the project. The cost of funds and the ratio of funding –debt/equity requires careful consideration while borrowing funds. Availing good professional advice at the project conceptualisation stage is a critical part of any venture.

Employment of suitable personnel  

Accelerated growth of an enterprise calls for selection of suitable people for the job with right aspirations. Building a motivated and dedicated team in sync with the line of activity and delegation of duties and responsibilities is very important.