‘Start small and alone’ – Agribusiness expert warns young people against business partnerships with friends

Agribusiness experts are cautioning young individuals against jumping into business partnerships with friends, especially if they do not have a clear plan for sharing responsibilities, handling losses, and keeping track of investments. Engr. Mahmud Mohammed-Nurudeen, Executive Director of the Centre for Climate Change & Food Security (CCCFS) and Director of the West African Journalists for Environment, Science, Health and Agriculture (WAJESHA), made these remarks at an Agribusiness Incubation Workshop held at Valley View University’s Oyibi campus.

According to Engr. Mohammed-Nurudeen, while partnerships can bring benefits, they can also jeopardize friendships when partners do not have equal access to information about the business operations and financial situation. He advised that starting a small-scale business independently is the best way to preserve relationships and maintain personal integrity.

The expert pointed out that a common issue with partnerships is that one person often takes on the majority of the responsibility while the other members remain disconnected from the day-to-day operations. He feared that this imbalance could lead to suspicion, particularly if the primary business manager starts reporting losses, unexpected expenses, or operational problems that the other partners were not aware of.

Drawing from his experience in guiding young entrepreneurs in agribusiness, Engr. Mohammed-Nurudeen has seen partnerships dissolve due to suspicion and disagreements over finances. He cited examples of graduates who started poultry production ventures together, only to fall out and abandon the business when each partner became suspicious of the others' honesty. In some cases, financial disputes between friends have spilled over onto social media, further damaging the relationship.

Given the inherent uncertainties in agribusiness, such as disease outbreaks, fluctuating production costs, market conditions, and unpredictable weather, Engr. Mohammed-Nurudeen stressed that partners must be actively involved and regularly informed about the farm's progress, including profits, losses, operational challenges, and the impact of adverse weather. He emphasized that everyone involved should be kept in the loop regarding the business's gains, losses, and any adverse weather effects.

In summary, Engr. Mohammed-Nurudeen advised young people to think carefully before combining friendship with business, as the potential consequences of such partnerships can be severe and far-reaching.