Lending Model Information System
for Small-Scale Enterprises
ALOEVERA CULTIVATION
BUSINESS PROFILE AND FUNDING PATTERN
BUSINESS PROFILE
Profile of Aloe Vera Farmers
Aloe vera businessmen are local farmers and newcomers whose level of education is relatively low. Generally they are of elementary school level, and some didn't even complete their studies. However, some of them have undertaken some agricultural courses and continuously got guidance from the local Field Agriculture Extension workers (PPL). They exchange experience of domestication practices, although they have not been involved in any professional organization.
The age of these farmers are generally of productive age. The head of each family works in the garden together with his wife and adult children. There are also some farmers who are helped by their children who are still studying. These children help their parents during holiday.
Aloe vera business in the survey areas is generally not a special activity. These farmers also grow other commodities, especially popo which has similar scope and which needs similar attention to Aloe vera. Their experience of farming Aloe vera can be said to be relatively new, just after foreign businessmen came to their village to give some information about the good prospect of Aloe vera in foreign market.
Aloe vera businessmen are local farmers and newcomers whose level of education is relatively low. Generally they are of elementary school level, and some didn't even complete their studies. However, some of them have undertaken some agricultural courses and continuously got guidance from the local Field Agriculture Extension workers (PPL). They exchange experience of domestication practices, although they have not been involved in any professional organization.
The age of these farmers are generally of productive age. The head of each family works in the garden together with his wife and adult children. There are also some farmers who are helped by their children who are still studying. These children help their parents during holiday.
Aloe vera business in the survey areas is generally not a special activity. These farmers also grow other commodities, especially popo which has similar scope and which needs similar attention to Aloe vera. Their experience of farming Aloe vera can be said to be relatively new, just after foreign businessmen came to their village to give some information about the good prospect of Aloe vera in foreign market.
Profile of Aloe vera Farming Business
Aloe vera is generally grown in a 1 to 4 hectar area. Some farmers grow it in less than that area, and some others in more than 5 hectars. This farming business can be said to be small, which is of no legal firms and the status of the land is mostly of their own or hiring. It is managed by family, especially for the area of 1 hectar, except when the activities need a lot of labor such as land processing and harvesting. The product of Aloe vera is green leaves which are usually sold to collecting merchants who come to the garden.
The result of the survey shows that Aloe vera farmers generally started their business with their own capital. It is only a few of them who got loan from the banks. This is because banks have not been interested in this commodity business yet. Of the banks that become respondents, only one has given loan to Aloe vera farmers. According to this bank, there have been 4 farmers who have got loan from this bank, two of whom have fulfilled their obligation, while the two others are still paying the installment. The Head of Food Office (previously called Food Crop Agricultural and Horticultural Office) and local prominent figures do not even know that there is a bank which can give farming business credit to Aloe vera farmers.
Financing Aloe vera farming business has not got a big access from the bank and other funding sources. Some farmers are even reluctant to get loan from the bank for fear that they are not able to return the installment due to farming failure. Nevertheless, this does not mean that Aloe vera farming does not have economic propect. This reluctancy may be due to their lack of understanding of entrepreneurship and knowledge about banking system. Some of them even prefer to keep their money with the collecting merchants of Aloe vera rather than with the banks. In an emergency case, these farmers can borrow money (without interest) from them for Aloe vera farming business.
Aloe vera is generally grown in a 1 to 4 hectar area. Some farmers grow it in less than that area, and some others in more than 5 hectars. This farming business can be said to be small, which is of no legal firms and the status of the land is mostly of their own or hiring. It is managed by family, especially for the area of 1 hectar, except when the activities need a lot of labor such as land processing and harvesting. The product of Aloe vera is green leaves which are usually sold to collecting merchants who come to the garden.
The result of the survey shows that Aloe vera farmers generally started their business with their own capital. It is only a few of them who got loan from the banks. This is because banks have not been interested in this commodity business yet. Of the banks that become respondents, only one has given loan to Aloe vera farmers. According to this bank, there have been 4 farmers who have got loan from this bank, two of whom have fulfilled their obligation, while the two others are still paying the installment. The Head of Food Office (previously called Food Crop Agricultural and Horticultural Office) and local prominent figures do not even know that there is a bank which can give farming business credit to Aloe vera farmers.
Financing Aloe vera farming business has not got a big access from the bank and other funding sources. Some farmers are even reluctant to get loan from the bank for fear that they are not able to return the installment due to farming failure. Nevertheless, this does not mean that Aloe vera farming does not have economic propect. This reluctancy may be due to their lack of understanding of entrepreneurship and knowledge about banking system. Some of them even prefer to keep their money with the collecting merchants of Aloe vera rather than with the banks. In an emergency case, these farmers can borrow money (without interest) from them for Aloe vera farming business.
