Beyond "Blind Spots": Illuminating Financial Pathways for Thriving Agrotourism as a Family Business

Kishor Baburao Dalve *

Institute of Management & Research at MGM University, Chhatrapati Sambhajinagar, Maharashtra, India.

Pravin Govind Shastri

Institute of Management & Research at MGM University, Chhatrapati Sambhajinagar, Maharashtra, India.

Ashok Maruti Korade

S.K. Gandhi College Kada, Affiliated to Dr.Babasaheb Ambedkar Marathwada University, Chhatrapati Sambhajinagar, Maharashtra, India.

Abhishek Anant Motdhare

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur, India.

*Author to whom correspondence should be addressed.


Abstract

Purpose: This scientific research study aims to highlight the management of blind spots in agrotourism with the clear goal of helping farmers by offering them useful financial ratio analysis.

Design/Methodology/Approach: Conducted in-depth interviews with agrotourism owners and conducted a comprehensive review of existing academic literature, industry reports, and government publications on financial management in family-run businesses and agrotourism.

Findings: By acknowledging and addressing core "blind spots," family-run agrotourism businesses can cultivate a culture of financial awareness and proactive planning. The project appears to have a benefit-cost ratio (1.478) that is positive, meaning that benefits exceed expenses. Given the high internal rate of return (45.56%), the investment may out to be quite beneficial. The project's financial viability is further supported by the profitability index (1.37), which is higher than 1.

Practical Implication: We have analyzed financial ratios, such as profitability index, benefit cost ratio, payback period ratio, current ratio, net profit margin, fixed turnover assets ratio, Internal rate of return, working capital turnover ratio, return on investment, gross margin etc. to assess the profitability and performance of the agrotourism. In order to maximize revenue from agrotourism, we monitored a number of factors before calculating break-even analysis. These included financial risks, profitable revenue streams, and seasonal variations in demand and income during off-peak seasons, off-farm income, and operating costs. This type of all analysis useful for avoid blind spots in agrotourism.

Originality/Value: Offering concrete strategies and frameworks tailored to family agrotourism business can directly benefit practitioners, enhancing their financial resilience and contributing to business success.

Keywords: Family business management, agrotourism, blind spots, financial assessment, agri business management


How to Cite

Dalve , K. B., Shastri , P. G., Korade , A. M., & Motdhare , A. A. (2024). Beyond "Blind Spots": Illuminating Financial Pathways for Thriving Agrotourism as a Family Business. Asian Journal of Agricultural Extension, Economics & Sociology, 42(6), 28–45. https://doi.org/10.9734/ajaees/2024/v42i62460

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