Entrepreneurial Determinants of Performance of Coffee-Based Micro and Small Agribusinesses of the Coffee Small Holders in Murang’a County

Abstract

Micro and Small Enterprises (MSEs) are often considered to be a key source of productivity, growth and job creation. Therefore; the performance and the environment, in which the MSEs perform are seen as important factors of economic development. Despite this fact, MSEs in Kenya continues to face myriad of challenges which result to high mortality rate. The purpose of the study was to analyse the influence of entrepreneurial determinants of performance of coffee-based micro and small agribusiness of the coffee small holders in the Murang’a county. The study was guided by six specific objectives focusing on investigating how entrepreneurial finance, marketing conditions, technology integration, entrepreneurial capabilities, entrepreneurial culture and regulatory framework all determine the performance of these MSAEs. The study adopted a descriptive survey design that used both qualitative and quantitative research approaches. The target population of this study was 146,105 comprising of the coffee smallholders affiliated to cooperative sector within eight sub counties of Murang’a County. Sampling with probability proportionate to size was used to get a sample size of 384 respondents drawn from the eight Sub Counties of the County. For analysis, a multivariate regression model was employed to establish the relationship between the independent variables; entrepreneurial finance, marketing conditions, technology, entrepreneurial capabilities, entrepreneurial culture and regulatory framework and dependent variable which was performance of coffee-based micro and small agribusinesses of the coffee small holders in Murang’a County. The study finding showed that market conditions and entrepreneurial capabilities positively and significantly determined the performance of coffee-based micro and small agribusinesses of the coffee small holders in Murang’a County, while entrepreneurial finance, entrepreneurial culture and technology were found to have insignificant influence on performance of MSAs in Kenya. Further, the findings unravelled that the regulatory framework significantly moderated the relationship between entrepreneurial finance, entrepreneurial capabilities, entrepreneurial culture and performance of coffee-based micro and small agribusinesses of the coffee small holders in Murang’a County. The study concluded that not all entrepreneurial determinants significantly determined the performance of coffee-based micro and small agribusinesses of the coffee small holders in Murang’a County. The study recommends that both levels of government and private should collaborate in initiating strategies and necessary policies to improve entrepreneurial finance, market conditions, technology integration, entrepreneurial capabilities and entrepreneurial culture in an attempt to boost performance of coffee-based micro and small agribusinesses of the coffee small holders in Murang’a County.