The objective of the research reported here was to identify the needs of food entrepreneurs in the state of Indiana. To attain this objective, Purdue Extension educators from 86 counties in Indiana were surveyed. Topics of interest from the survey results included marketing, new business start-up, food regulations, and food safety. This assessment tool has directed Purdue Extension in developing a Food Entrepreneur Engagement Program. The survey results were used to develop a statewide workshop for food entrepreneurs. Resources provided by this program ultimately helped several food entrepreneurs create value-added food businesses in Indiana

Bush, De

Hayes, Kirby

Marshall, Maria I

English

Clemson University: TigerPrints

The Journal of Extension Volume 43 Number 5 Article 18 10-1-2005 Extension Programming for Food Entrepreneurs: An Indiana Needs Assessment Maria I. Marshall Purdue University, MIMARSHA@PURDUE.EDU De Bush Purdue University, djbush@purdue.edu Kirby Hayes Purdue University, hayesk@purdue.edu This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 4.0 License. Recommended Citation Marshall, M. I., Bush, D., & Hayes, K. (2005). Extension Programming for Food Entrepreneurs: An Indiana Needs Assessment. The Journal of Extension, 43(5), Article 18. https://tigerprints.clemson.edu/joe/vol43/iss5/18 This Research in Brief is brought to you for free and open access by the Conferences at TigerPrints. It has been accepted for inclusion in The Journal of Extension by an authorized editor of TigerPrints. For more information, please contact kokeefe@clemson.edu. 	 JOEHOME JOURNAL GUIDELINES ABOUT	JOE CONTACT NATIONAL	JOB	BANKCurrent	Issues Back	IssuesOctober	2005	//	Volume	43	//	Number	5	//	Research	in	Brief	//	5RIB90Extension	Programming	for	Food	Entrepreneurs:	An	IndianaNeeds	AssessmentAbstractThe	objective	of	the	research	reported	here	was	to	identify	the	needs	of	food	entrepreneurs	inthe	state	of	Indiana.	To	attain	this	objective,	Purdue	Extension	educators	from	86	counties	inIndiana	were	surveyed.	Topics	of	interest	from	the	survey	results	included	marketing,	newbusiness	start-up,	food	regulations,	and	food	safety.	This	assessment	tool	has	directed	PurdueExtension	in	developing	a	Food	Entrepreneur	Engagement	Program.	The	survey	results	wereused	to	develop	a	statewide	workshop	for	food	entrepreneurs.	Resources	provided	by	thisprogram	ultimately	helped	several	food	entrepreneurs	create	value-added	food	businesses	inIndiana.	IntroductionThe	need	to	move	from	solely	agricultural	commodities	to	both	commodities	and	value-addedproducts	is	a	key	factor	in	sustaining	Indiana	agriculture.	In	order	to	help	Indiana's	FoodProcessing-Related	industry	as	well	as	food	entrepreneurs	in	development	of	value-added	foodproducts,	Purdue	University	Cooperative	Extension	specialists	are	building	a	program	that	will	be	aresource	for	food	entrepreneurs	who	wish	to	market	specialty	foods	or	food	ingredients.	It	isanticipated	that	this	program	will	provide	written	materials,	workshops,	contact	resources,consultation	services,	consumer	testing,	and	limited	lab	services.The	objective	of	our	research	was	to	identify	the	needs	of	food	entrepreneurs	within	the	state	ofIndiana.	To	attain	this	objective,	Purdue	Extension	educators	from	86	counties	in	Indiana	weresurveyed.	Survey	questions	covered	three	subject	areas:	1)	resources	that	Purdue	Extension	mightprovide,	2)	the	number	and	type	of	inquiries	made	by	food	entrepreneurs	to	Extension	educators,and	3)	food	entrepreneurs'	interests,	and	type	of	product	they	were	planning	to	market.Understanding	the	specific	needs	of	entrepreneurs	has	allowed	Purdue	Extension	to	determinewhat	services	and	types	of	information	will	be	most	useful	and	necessary	to	build	a	program	thatwill	assist	Indiana	food	entrepreneurs	and	provide	Extension	educators	with	basic	technicaleducation	on	food	entrepreneurship	(Bazik	&	Feltes,	1991;	Koukel	&	Cummings,	2002).	Citizenssuch	as	farmers,	current	food	business	owners,	farmer's	market	participants,	and	homemakerswho	wish	to	become	entrepreneurs	in	the	area	of	specialty	food	products	or	food	ingredients	oftenMaria	I.	MarshallAssistant	Professor	and	Extension	Specialist,	Rural	and	Small	Business	DevelopmentDepartment	of	Agricultural	Economicsmimarsha@purdue.eduDe	BushExtension	AssistantDepartment	of	Food	Sciencedjbush@purdue.eduKirby	HayesAssistant	ProfessorDepartment	of	Food	Sciencehayesk@purdue.eduPurdue	UniversityWest	Lafayette,	Indianaseek	advice	from	their	county	Extension	educators	at	some	point	in	their	ideation	process.Because	it	is	difficult	to	locate	and	survey	food	entrepreneurs	directly	and	Extension	educators	area	reliable	and	often-contacted	resource	for	food	entrepreneurs,	we	chose	to	survey	PurdueExtension	educators	as	an	indicator	of	the	needs	of	Indiana's	food	entrepreneurs.Extension	educators	are	a	key	link	to	understanding	client	needs	and	their	knowledge	base	inorder	to	develop	statewide	program	initiatives	(Shneider	&	Smallidge,	2000;	Koukel	&	Cummings,2002;	Kaplan,	Liu,	&	Radhakrisna,	2003).	Gilmore,	Meehan-Strub,	and	Mormann	(1994)	used	asimilar	needs	assessment	survey	process	to	develop	a	statewide	program	related	to	food	safety.The	needs	assessment	of	Purdue	Extension	educators	has	served	as	a	guide	in	the	development	ofa	food	entrepreneurship	program	provided	by	Purdue	Extension	specialists	in	AgriculturalEconomics	and	Food	Science.Materials	and	MethodsTo	ascertain	the	needs	of	Indiana	entrepreneurs	we	developed	a	16-item	survey.	The	16	questionsasked	on	the	survey	were	divided	into	three	sections.	The	first	section	included	questionsregarding	written	resources	that	Purdue	Extension	specialists	in	Agricultural	Economics	and	FoodScience	might	provide	to	county	Extension	educators	that	would	enable	them	to	provide	supportfor	food	entrepreneurs.	The	second	section	of	the	survey	dealt	with	the	number	and	type	ofinquiries	made	by	entrepreneurs	to	Extension	educators.	This	included	who	was	inquiring,	howoften,	how	many,	and	how	serious	the	inquiries	were.	Finally,	the	third	section	covered	the	specificinterests	of	the	entrepreneurs.	This	included	topics	like	food	quality	and	development,	foodregulations,	food	safety,	marketing,	etc.	They	also	were	asked	about	their	product,	process,	anddistribution	plans.One	hundred	and	seventy-two	Agricultural	and	Natural	Resource	(ANR)	and	Consumer	and	FamilyScience	(CFS)	Extension	educators	in	Indiana	were	sent	the	survey	via	electronic	mail	with	a	letterexplaining	the	purpose	of	the	survey.	They	were	instructed	to	return	the	completed	survey	via	e-mail	or	fax,	and	a	date	was	provided	by	which	surveys	were	to	be	completed.	Additionally,	some	ofthe	ANR	educators	completed	the	survey	while	attending	an	annual	conference.Extension	educators	from	86	counties	in	Indiana	were	surveyed,	and	responses	were	received	from44	Extension	educators	from	35	different	counties.	This	represents	a	response	rate	of	26%.	Of	thecounty	Extension	educators	surveyed,	those	who	responded	were	from	a	cross	representation	ofIndiana.	This	helps	to	validate	the	usefulness	of	these	data	as	a	means	of	assessing	needs	acrossthe	state	of	Indiana.ResultsThe	majority	of	respondents	indicated	that	a	3-ring	binder	of	information	covering	various	aspectsof	Food	processing-related	activities	as	a	resource	would	be	very	or	somewhat	helpful	and	wouldbe	used	regularly.	Mainly,	Extension	educators	were	being	queried	quarterly,	and	51%	hadreceived	one	to	five	inquiries	regarding	food	entrepreneurship	in	2002	(Figure	1).	Twenty-fourpercent	of	the	educators	received	no	inquiries,	and	17%	received	more	than	10	inquiries.	Thisdemonstrates	a	potential	market	for	educational	resources	related	to	food	entrepreneurship.Figure	1.Responses	to	the	Question:	How	Many	Inquiries	Regarding	Food	Entrepreneurship	Have	YouReceived	in	the	Past	Year?Figure	2	indicates	Indiana	citizens	inquiring	about	food	entrepreneurship	were	mainly	farmers,homemakers,	and	local	farmers'	market	participants.	This	observation	identifies	potential	timingissues	related	to	workshop	offerings.	Specifically,	the	workshops	should	be	offered	in	early	springor	late	fall	to	avoid	planting	and	harvesting,	respectively.	The	results	also	showed	that	Extensioneducators	might	need	more	food	business-related	resources	because	not	only	are	they	receivinginquiries	from	current	food	business	owners	but	also	from	other	educators.	Because	of	thediversity	of	interested	parties,	any	workshop	or	program	advertising	must	use	multiple	channels	toreach	potential	participants.Figure	2.Number	and	Types	of	Clients	Seeking	Food	Entrepreneurship	Information	from	Purdue	ExtensioneducatorsPotential	food	entrepreneurs	contacting	Purdue	Extension	educators	had	a	higher	level	of	interestin	food	regulations	and	general	business	information,	with	marketing	and	food	quality	anddevelopment	coming	in	a	close	third	(Figure	3).	General	business	included	a	vast	number	of	clientsinterested	in	new	business	start-up	information.	The	broad	interest	of	the	potential	foodentrepreneurs	implied	the	need	for	multidisciplinary	(e.g.,	Agricultural	Economics	and	FoodScience)	and	interagency	(e.g.,	Indiana	State	Department	of	Health	and	Indiana	Small	BusinessDevelopment	Centers)	collaboration	in	the	development	of	the	workshops	and	materials.Figure	3.Type	of	Information	Requested	by	ClientsPurdue	Extension	educators	indicated	that	most	clients	were	planning	to	mainly	use	or	sell	fruit,vegetable,	or	meat	products	(Figure	4).	Approximately	58%	of	the	clients	contacting	Extensioneducators	indicated	that	fresh,	or	no	process,	and	freezing	were	the	predominant	methods	ofprocessing	they	were	planning	to	use.	These	data	helped	focus	the	food	safety	and	foodprocessing	sections	of	the	workshop's	program	and	printed	materials.	While	the	interest	inorganic/nutritional	products	was	lower,	materials	covering	these	concepts	were	included	in	theprinted	materials	and	resources	in	the	workshop's	binder	because	of	the	increasing	demand	byconsumers	for	organic/nutritional	products.Figure	4.Type	of	Products	Clients	Were	Planning	on	Making/SellingThe	majority	of	Indiana	food	entrepreneurs	(56%)	were	planning	on	direct	marketing	orparticipating	in	farmer's	markets	for	the	distribution	of	their	products	(Figure	5).	Only	10%	wereinterested	in	distributing	their	food	products	through	national	or	regional	grocery	store	chains.	Asurvey	of	Indiana's	County	Department	of	Health	officials	also	indicated	that	most	inquiries	wereby	clients	interested	in	distributing	their	products	by	direct	marketing	channels,	including	farmers'markets.	However,	county	Health	Departments	had	more	clients	interested	in	restaurant	andcatering	sales	than	Extension	educators.Figure	5.Client	Distribution	MethodsFrom	the	survey	we	concluded	that	most	of	the	food	entrepreneurs	that	were	contacting	Extensioneducators	were	producers,	homemakers,	or	farmers'	market	participants.	The	results	of	the	surveyindicate	that	food	entrepreneurs	in	Indiana	most	often	requested	information	about	business	start-up	and	food	regulations.	The	results	also	indicated	the	need	for	program	information	specificallyrelated	to	producing	and	marketing	products	that	will	be	sold	directly	to	consumers.	This	promptedus	to	include	sections	in	our	programming	material	on	marketing	and	pricing	food	products	bydifferent	distribution	channels.	The	product	development,	packaging,	and	food	regulation	sectionsof	the	materials	developed	are	also	focused	on	helping	food	entrepreneurs	sell	their	products	viadirect	marketing	channels.Application	and	ImpactsOur	survey	was	used	to	focus	Purdue	Extension's	efforts	toward	supporting	food	entrepreneurshipin	Indiana.	Specifically,	the	survey	identified	content	topics	that	needed	to	be	addressed.	Anothermajor	impact	of	this	survey	and	the	application	of	the	data	gathered	was	the	development	of	acloser	collaboration	between	the	Indiana	State	Department	of	Health,	Indiana	Small	BusinessDevelopment	Centers,	and	the	Departments	of	Agricultural	Economics	and	Food	Science	at	PurdueUniversity.A	1-day	workshop	was	designed	to	be	an	introduction	to	the	basic	needs	of	new	foodentrepreneurs	and	titled	"An	Introduction	to	Starting	a	Specialty	Food	Business	in	Indiana."	Themorning	sessions	cover	business	management	topics	such	as	business	planning,	marketing	of	foodproducts,	and	contracting	with	suppliers.	The	afternoon	sessions	cover	topics	such	as	Indiana	foodregulations,	foods	safety,	product	and	process	development,	and	packaging.	In	order	to	giveentrepreneurs	a	first-hand	account	of	what	it	is	like	to	be	a	food	entrepreneur	in	Indiana,	we	invitea	successful	food	entrepreneur	to	be	a	guest	speaker.The	workshop	participants	are	given	a	3-ring	binder	that	includes	the	workshop	presentations	andreference	materials	for	further	reading.	For	example,	the	business	management	section	includesreferences	of	small	business	to	obtain	free	counseling	and	other	small	business	resources.	Thefood	processing	section	includes	material	on	how	to	maintain	quality	control	and	where	topurchase	equipment.	Printed	materials	can	also	be	accessed	through	our	Web	site.	Thesematerials	have	been	accessed	by	over	4,000	individuals	and	downloaded	7,000	times	over	thepast	year.	The	Web	site	can	be	located	at	<www.foodsci.purdue.edu/outreach/FEEP>.Understanding	from	the	survey	that	timing	is	important,	the	workshops	are	offered	twice	a	year,once	in	early	April	in	central	Indiana	and	once	in	mid-November	in	either	southern	or	northernIndiana.	The	workshop	is	marketed	via	several	sponsors,	collaborators,	and	agencies	such	as	theSmall	Business	Development	Centers,	Indiana	Farm	Bureau,	and	the	Neighborhood	Self-Employment	Initiative	(a	micro-enterprise	agency).	The	workshops	have	been	attended	by	anaverage	of	30	participants,	including	six	Extension	educators	per	workshop.	On	average,	20%	goon	to	start	new	food	businesses.Collaboration	between	the	Departments	of	Food	Science	and	Agricultural	Economics	culminated	inthe	development	of	the	Food	Entrepreneurship	Engagement	Program.	This	is	a	statewide	programin	which	both	departments	provide	food	entrepreneurs	with	technical	assistance	in	their	areas	ofexpertise.	For	example,	business	management	and	marketing	assistance	is	provided	byAgricultural	Economics,	and	processing	and	food	safety	assistance	is	provided	by	Food	Science.Many	of	the	workshop	participants	continue	receiving	assistance	through	this	program	in	order	tostart	new	food	businesses.	One	such	participant	started	a	new	food	business	that	generated	30new	jobs	in	a	community	of	2,500.ReferencesBasik,	M.	&	Feltes,	D.	(1999).	Defining	your	customer	profile--An	essential	tool.	Journal	ofExtenstion	[On-line],	37(6).	Available	at:	http://www.joe.org/joe/1999december/a4.htmlGilmore,	G.	D.,	Meehan-Strub,	M.,	&	Mormann,	D.	(1994).	Food	safety	assessment	andprogramming.	Journal	of	Extension	[On-line],	32(2).	Available	at:http://www.joe.org/joe/1994august/a8.htmlKaplan,	M.,	Liu,	S.,	&	Radhakrishna,	R.	(2003).	Intergenerational	programming	in	Extension:	Needsassessment	as	planning	tool.	Journal	of	Extension	[On-line],	41(4).	Available	at:http://www.joe.org/joe/2003august/a5.htmlKoukel,	S.,	&	Cummings,	M.	(2002).	New	Mexico	Cooperative	Extension	Service	Home	Economists'perceived	technical	knowledge	and	estimated	client	needs.	Journal	of	Extension	[On-line],	40(5).Available	at:	http://www.joe.org/joe/2002october/a5.shtmlSchneider,	R.,	&	Smallidge,	P.	(2000).	Assessing	Extension	educator	needs	in	New	York	to	addressnatural	resource	issues	for	the	new	millennium.	Journal	of	Extension	[On-line],	38(3).	Available	at:http://www.joe.org/joe/2000june/a4.htmlCopyright	�	by	Extension	Journal,	Inc.	ISSN	1077-5315.	Articles	appearing	in	the	Journal	become	the	property	of	theJournal.	 Single	 copies	 of	 articles	may	 be	 reproduced	 in	 electronic	 or	 print	 form	 for	 use	 in	 educational	 or	 trainingactivities.	Inclusion	of	articles	in	other	publications,	electronic	sources,	or	systematic	large-scale	distribution	may	bedone	only	with	prior	electronic	or	written	permission	of	the	Journal	Editorial	Office,	joe-ed@joe.org.If	you	have	difficulties	viewing	or	printing	this	page,	please	contact	JOE	Technical	Support©	Copyright	by	Extension	Journal,	Inc.	ISSN	1077-5315.	Copyright	Policy

Extension Programming for Food Entrepreneurs: An Indiana Needs Assessment

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Extension Programming for Food Entrepreneurs: An Indiana Needs Assessment

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