Influence of Market Conditions and Performance of Coffee Smallholders’ Micro and Small Agribusinesses in Murang’a County, Kenya
Researchers remain uncertain regarding the overall contribution of marketing conditions on the growth and performance to propel the smallholder’s agripreneurs from poverty despite their potential. It is for this reason that this study sought to examine the influence of market conditions on the performance of micro and small agribusiness of the coffee smallholders’ entrepreneurs in Kenya. In its development plans, Kenya has sought to create and develop agribusiness, because of the vast context of agribusiness and its potential to develop enterprises. The purpose of the study was to determine the influence of market conditions on performance of micro and small agribusinesses of coffee smallholders in Murang’a County. The target population of this study was 146,105 comprising of the coffee smallholders 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. The study adopted a descriptive survey design that used quantitative research approaches. For analysis, a regression model was generated to establish the relationship between market conditions and performance of micro and small agribusinesses. The regression analysis showed that market conditions had a positive and significant effect on performance of agribusiness owned by coffee smallholder agribusinesses in Kenya. The study concluded that market conditions played a huge role in contributing to expansion of the agribusiness sector in Kenya. The study recommends that county government should also encourage coffee smallholder agribusinesses in their county to form agricultural co-operatives or join existing co-operatives which will ensure that products from micro and small agribusiness reach markets that fetches good prices to increase the earnings and eliminate exploitative middlemen who benefits at the expenses of small farmers.
Keywords: Smallholder Agribusinesses, Market Conditions
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