8 real cases of rural entrepreneurial failure
Money is only a booster for entrepreneurs, not a life-saving straw. If you have money, projects will develop faster; if you don’t have money, projects will develop slowly.
First of all, I am not blowing the wind!
Personally, I think that the policy of returning to hometowns to start a business is a great thing that benefits the country and the people!
I am also from a rural area. , although I have been away from the countryside for 12 years, I still have a strong sense of being a farmer.
If the opportunity is right, maybe I will also embark on the road of returning to my hometown to start a business.
After all, the policies of local governments for returning to hometowns to start businesses are really tempting. Among them, for example:
1. Major policies: The General Office of the State Council issued the "Opinions on Supporting the Entrepreneurship and Innovation of People Returning to the Countryside to Promote the Integrated Development of Rural Primary, Secondary and Tertiary Industries" (hereinafter referred to as the "Opinions"), which Policy support will be given to migrant workers, graduates of secondary and higher education institutions, retired soldiers, scientific and technological personnel and other people who have returned to their hometowns to carry out entrepreneurship and innovation in rural areas.
The "Opinions" require that market access be simplified, a green channel for registration be established, and administrative fees such as registration and licenses be waived. Improve financial services, steadily and orderly promote the pilot program of mortgage loans for the management rights of rural contracted land, explore the development of mortgage loans for agricultural facilities, agricultural machinery, biological assets, etc.; promote the development of rural inclusive finance, and strengthen the inclusion of credit evaluation systems for returning to the countryside. Financial services for personnel; encourage places with conditions to explore innovative pilot projects such as price index insurance, income insurance, credit guarantee insurance, agricultural product quality and safety insurance, and livestock, poultry, and aquatic live insurance. Increase financial support and include qualified personnel into the scope of existing fiscal support for agriculture policy support subjects, the scope of existing entrepreneurial policy support and the scope of guarantee support.
Those who return to their hometowns to start businesses and innovate in the countryside can participate in various social insurances in accordance with relevant regulations in the place of business. Those who have difficulties in living after the initial business failure can enjoy social assistance in accordance with regulations.
2. Policies of local governments:
Sichuan Province: The General Office of the Sichuan Provincial Government recently issued the "Opinions on Supporting the Entrepreneurship and Innovation of People Returning to the Countryside to Promote the Integrated Development of Primary, Secondary and Tertiary Industries in Rural Areas" Implementation Opinions", put forward a package of support policies to encourage and support the return of migrant workers, farmer entrepreneurs, college graduates, unplanned resettlement soldiers (including officers, non-commissioned officers, and soldiers), scientific and technological personnel, people who have returned from studying abroad, young people, women, etc. People from rural areas go to rural areas to start businesses and innovate, accelerating the integrated development of rural primary, secondary and tertiary industries.
Sichuan Province will encourage and support people returning to their hometowns to set up family farms, farmer cooperatives, agricultural enterprises, agricultural socialization service organizations, etc., and will unite and cooperate with powerful deep processing enterprises to form industry Organizations or alliances are encouraged to directly invest or participate in equity operations to form cooperative, joint-stock cooperative and joint-stock enterprises. Encourage people who return to their hometowns to vigorously develop high-quality grain, oil, vegetables, fruits and other specialty industries, and create agricultural scenic spots, agricultural theme parks, and characteristic towns with culture as the main focus. Guide people who have returned to their hometowns to establish agricultural social service organizations to provide diversified paid services such as distribution of agricultural supplies, unified prevention and control of pests and diseases, agricultural waste treatment, agricultural information consultation, etc.
Sichuan Province will provide comprehensive policy support in seven aspects including market access, financial services, financial support, land and electricity, entrepreneurship training, social security, and information technology.
Anhui: Anhui is accelerating the cultivation of new agricultural business entities. Encourage large planting and breeding households and members of farmer cooperatives to develop moderate-scale family farms, and support returning migrant workers, college graduates, and retired military personnel to establish family farms. On the premise of complying with safety, environmental protection, fire protection and other requirements, returnees are allowed to use family residences, rental houses, and temporary commercial buildings as e-commerce business premises. Qualified returnees who start a business can obtain a guaranteed loan of no more than 100,000 yuan, and financial discounts will be provided in accordance with regulations. Returnees who set up small and micro enterprises or new agricultural business entities can obtain a guaranteed business loan with a maximum amount of no more than 2 million yuan, and a fiscal discount of 50% of the benchmark loan interest rate for the same period.
Luohe, Henan: Luohe City, Henan Province issued the "Implementation Opinions on Supporting Migrant Workers Returning to their hometowns to start businesses" (hereinafter referred to as the "Opinions"), and will provide subsidies to migrant workers who return to their hometowns to start businesses and migrant workers' entrepreneurial parks , subsidies, loan guarantees and a number of "gift packages".
According to the "Opinions", Luohe City will strive to increase financial support for migrant workers' entrepreneurial projects: eligible migrant workers who return to their hometowns to start businesses will be provided with entrepreneurial guaranteed loans of up to 100,000 yuan; for partnerships, Business organizations that operate or organize employment, as well as "company + farmer" model and agricultural cooperatives, will be provided with entrepreneurial guaranteed loans at a maximum of not more than 100,000 yuan per person and a total of not more than 500,000 yuan; for qualified labor-intensive small businesses Micro enterprises can be provided with entrepreneurial guaranteed loans of up to 2 million yuan. Support funds ranging from 5,000 yuan to 50,000 yuan will be provided to farmers' entrepreneurial projects with great development potential, strong employment ability, and obvious economic and social benefits. At the same time, incentives and subsidies for entrepreneurial bases will be increased. Those that meet the standards of municipal-level migrant workers returning home to start their own business demonstration parks will receive a one-time award of 100,000 yuan; those that meet the standards of municipal-level entrepreneurial incubation bases will receive a one-time award of 200,000 yuan. Yuan bonus. The property management, sanitation, rent, water and electricity and other expenses incurred by the migrant workers' entrepreneurial entities stationed in the municipal migrant workers' return hometown entrepreneurship incubation base will be provided with corresponding subsidies within three years, with the maximum annual subsidy limit of 10,000 yuan.
Shanxi: The General Office of the Shanxi Provincial Party Committee and the General Office of the Provincial Government jointly issued the "Opinions on the Implementation of the Shanxi Merchants and Jincai Return to Hometown Entrepreneurship and Innovation Project" (hereinafter referred to as the "Opinions"), aiming to further promote and Guide Shanxi businessmen and talents to return to their hometowns to start businesses and innovate, and promote innovation-driven, transformation and upgrading in Shanxi Province. The "Opinions" also clearly put forward the work priorities, policy support, service environment and safeguard measures for the Shanxi merchants and Jincai return hometown entrepreneurship and innovation project.
Although policies, subsidies, conveniences, etc. have become a major initiative of local governments to support return-to-hometown entrepreneurship!
However, I think it is still abnormal! Especially the return-to-hometown policies of local governments Be skeptical.
I have been thinking about how much these policies can help entrepreneurs who return home.
Let me help you do some calculations first: reduce or exempt water and electricity policies, but the water and electricity bills will not exceed 5,000 yuan a year; open a green channel for industrial and commercial registration, but to register a company, you can find an agency for 500 yuan to get it done If you still want to start a business, you can apply for tax exemptions or subsidies, which are just a drop in the bucket of the entrepreneurial capital needed to start a business.
The main difficulties and problems currently faced by migrant workers returning to their hometowns to start businesses
Hunan Shimen has issued a special survey report on migrant workers returning to their hometowns to start businesses. After investigation and interviews, the main difficulties and problems faced by migrant workers in this county returning to their hometowns to start businesses are as follows:
1. Lack of funds. Many entities founded by returning migrant workers have encountered this problem. Commercial loans lack pledges and guarantees, and entrepreneurial loans have high restrictions. For example, no loan records can be traced back five years, which greatly restricts entrepreneurs who return home.
2. Missing items. At present, most entities run by entrepreneurs who have returned home are in the service industry and labor-intensive industries. Really promising sunrise projects are rare, which limits the expansion and strength of the entities.
3. Lack of labor. Larger enterprises founded by entrepreneurs who returned home have encountered the problem of labor shortage, and even county-wide administrative promotion has been difficult to guarantee.
4. Lack of skilled workers. Large-scale enterprises established by entrepreneurs who returned to their hometowns in our county have all encountered the phenomenon of difficulty in finding skilled workers. Even recruiting a few electricians and welders has been a struggle.
These problems are the most common problems encountered by rural entrepreneurs today, and they exist objectively. There are several types of investors who will succeed or fail in your business.
8 Real Cases of Failure in Rural Entrepreneurship
Next, we have summarized 8 real cases of failure in rural entrepreneurship. We hope that the cases of entrepreneurs’ blood and tears can help you summarize experience and Carry on the past and open up the future.
1. Failure due to weather
Agriculture, which depends on the weather, will also lose everything because of the weather. When a natural disaster strikes, entrepreneurs are almost helpless.
Case: Ali worked outside the Pearl River Delta in Guangdong for 10 years and earned two to three hundred thousand. Inspired by the policy, he planned to go home and start a business. After all, I am from a rural area, so I chose to start a business in the planting industry.
So Ali used all his funds to buy more than 30 acres of land to grow peppers. Among them, other people's fertilizers, pesticides and seedlings were also sold on credit. I watched the peppers grow up step by step, but as a result, we encountered bad weather this year. It rained even during the month when the peppers were put on the market, and half of them fell, and a lot of the rest were rotten. Basically lost everything.
2. Failure in following the trend
In the agricultural field, especially in rural areas, the phenomenon of following the trend is particularly serious. If rural entrepreneurship follows the trend, it may result in losing everything.
Case: In the spring of 2015, the market price of its origin rose to a record high price of 1,300 yuan (kg price, the same unit below); at the same time, the price of leech seedlings also rose to a sky-high price of 340 yuan, which is higher than that of 2014 The price increase of 160 yuan during the same period last year was as high as 113%. For a time, countless multi-millionaires were born? Raising leeches has quickly become a road to wealth that many farmers and investors are looking forward to.
In 2015, Zhang Qiang, who grew potatoes, watched his friends make a lot of money by raising leeches, so he switched to raising leeches. However, raising leeches is a technical job and has a lot to do with the environment. At the same time, the price of leeches is subject to large market fluctuations. The price has also dropped from the original several thousand yuan to tens of yuan, and there is not even a buyer. Zhang Qiang's investment of more than 2 million yuan in Leech suffered a huge loss.
3. Failure lies in not understanding technology.
To do agriculture, you really need to understand a little bit of technology. Otherwise, failure is imminent.
Case: Because Wang Jing was interested in growing medicinal materials, she invested more than 3 million yuan and rented 150 acres of land to dry Chinese medicinal materials. because. Wang Jing did not understand the planting and management techniques of medicinal materials and medicinal material production habits, which resulted in the medicinal materials grown not meeting the standards of the purchaser. More than 3 million yuan was basically wasted.
4. Failure lies in blind scaling
Scale is not something you think will work. Scaling requires rural areas to be prepared for various factors such as mentality, timing, and ability.
If you want to scale, you must go through all levels and resources.
Case: In 2014, Ah Xiong Yang Le raised 20 pigs and made more than 100,000 yuan. In 2015, the scale was expanded and 200 pigs were raised. However, the price of pigs fluctuated greatly in 2016, and the cost of feed was rising again. Basically, Ah Xiong's 200 pigs were not cost-effective and were basically losing money.
5. Failure due to integrity
Many members do things with a lucky mentality. This is wrong. In fact, the public’s eyes are sharp.
Case: Chen Fang engages in organic farming in rural areas and rents 100 acres of land for organic farming. After being introduced by friends, large supermarkets and restaurants in Beijing, Shanghai and Guangzhou signed order agreements. According to the agreement, no pesticides or chemical fertilizers are allowed. But Chen Fang saw that these 100 acres of vegetables were almost infested with insects, so he secretly sprayed pesticides and the insect infestation was prevented. However, the purchasing unit successively tested that all the vegetables sent by Chen Fang did not meet the specifications and were returned. Chen Fang was criticized by people in the village as "dishonest". There is no sale for these more than 100 acres of vegetables, and almost all of them rot in the fields.
6. Failure due to market excess
Market excess leads to slow sales or price wars. At the same time, many rural entrepreneurial opportunities have no recourse against market excess.
Case: Yi Dabiao is well-known in Bozhou City. He was once a rare "rich man" in the local area, with assets exceeding tens of millions, so he transferred 600 acres of land twice, became a major chive grower, and established the first chive production and marketing association in Qiaocheng District, Bozhou City. Yi Dabiao was elected as the president of the association, specializing in organizing the planting of leeks and promoting the development of the local leeks industry. In order to encourage Yi Dabiao to take this lead, the government promised to provide him with support in terms of policies, funds, and projects. However, due to the lack of an overall plan, a swarm of bees came into action. The local leek production was excessive, and the low price of vegetables hurt farmers. Most land transfer households suddenly lost money.
7. Failure in management
There are many families in rural areas or cooperatives who are their relatives, brothers or neighbors in life. In rural areas, many rural entrepreneurs tend to ignore personnel management due to face problems.
Case: The Dianxiang Vegetable Professional Cooperative founded by Zhang Weigang has learned such a lesson. After joining a cooperative, farmers become new members and receive wages to commute to work just like city residents.
At the beginning, because management was not precise and members relied on their own consciousness to work, the problem of poor performance was exposed. Most cooperatives are essentially simple buyer-seller relationships and have not yet formed a true community of interests. In such a loose state, although they are united, the gaps left are large, and it is naturally difficult to safeguard the interests of farmers. Once a cooperative encounters operating difficulties, many members will lose patience, leave the cooperative, or even breach the contract.
8. Failure in sales
Selling products is the key to success. However, many rural entrepreneurs are particularly blind when it comes to the market and sales. If the product cannot be sold, it is reasonable for the business to fail.
Case: Finding that there is a huge demand for native chickens and eggs, Li Yanguo rented more than 2,000 acres of mountain land to engage in ecological breeding of native chickens. We first set up a small-scale chicken farm in the mountain farm and purchased 10,000 chickens. The 8,000 native chickens that were carefully raised in the first year were the result of Li Yanguo's hard work for more than half a year. In order to ensure that the chickens were all natural and pollution-free, even herbicides were not allowed to be used in the farm.
According to Li Yanguo's original estimate, the market demand should be about 20,000, but now it seems that it is not that big. The demand for local chickens in restaurants and farmhouses on Shijiazhuang Shanqian Avenue and Yuanshi County can reach about 20,000 a year, but so far, only a few friends have confirmed that they want 100 chickens per person, and there are still a few left. Thousands of native chickens are still unmarketable.
Finally, some people would say that rural entrepreneurship fails because of money. In fact, money is just a booster for entrepreneurs, not a life-saving straw. If you have money, projects will develop faster; if you don’t have money, projects will develop slowly. That’s all!
Therefore, whether rural entrepreneurship succeeds or fails, we must find the “fundamental question”. This is also a question that many rural entrepreneurs must think about. ;