Influence of Access to Entrepreneurial Finance and Performance of Coffee Smallholders Micro and Small Agribusinesses in Muranga County, Kenya
Abstract
Researchers remain uncertain on the contribution of the access to entrepreneurial finance on the integral performance regarding micro and small agribusinesses in Kenya. Its also not well documented as to how access to entrepreneurial finance affects coffee smallholder alternative agribusinesses performance. The purpose was to determine influence of access to entrepreneurial finance on performance of micro and small agribusinesses of coffee smallholders in Muranga County. The target population of this study was 146,105 comprising of the coffee smallholders within eight sub counties of Muranga 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 regression model was generated to establish the relationship between access to entrepreneurial finance and performance of micro and small agribusinesses.The study established the access to entrepreneurial finance had a positive and significant determination on performance of micro and small agribusiness owned by coffee smallholder agribusinesses in Kenya. The study concluded that that since majority of the coffee smallholder agribusinesses in Kenya do not access entrepreneurial finance they have opted for own savings as a mean of financing their micro and small agribusiness enterprises. The study recommends that owners of the micro and small agribusinesses in Kenya should be trained by stakeholders such as local NGO, county governments and national governments and financial institutions on the importance of seeking external funds to finance their agribusinesses.
Keywords: Smallholder Agribusinesses, Access to Entrepreneurial Finance
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