> AGS > Agricultural finance and investment > Capacity building
 

Capacity building

In business, "money makes money". The success of a business depends very much on the business owner's ability to manage money. Owners of small or micro enterprises often have to learn to separate personal and business money, to make sensible investment decisions and to remain in control of transactions if they are to succeed in maintaining and expanding their businesses and thus their incomes. Institutions also need capacity building to manage their portfolios, risks and returns. Similarly, policy makers and regulators need improved capacity to meet the new challenges and new products that are being developed.

Financial education which teaches people about managing cash, making budgets, keeping books, preparing accounts, managing credit sales, determining borrowing requirements, using insurance, managing debts and so on, is essential to help small scale farmers and other rural entrepreneurs to survive. It also helps them to become bankable and to make effective use of financial services when they are available.

Banks, credit unions and microfinance institutions often do not lend to agriculture due to a lack of understanding of its risks or a lack of capacity to develop the type of financial products needed. The governments and non-governmental development agencies provide the framework and support role to agricultural finance and agribusiness development and must also have the skills and understanding.

Capacity building takes many forms and the AGS Division provides guidance and support through training and technical resource materials for the different levels indicated above. It also offers e-learning training resources, and curricula for formal and informal training use. Capacity building is also provided throughout the world through technical advice and capacity building projects.  In addition to the current website, a much greater range of information and resources relating to capacity building can be found in the Rural Finance Learning Centre

 

Peoples' lives in rural Bangladesh, woman on sewing machine

Related links

Related publications