Effect of entrepreneurial competency and agrienterprise farm capability on performance of smallholder irish potato farmers in Nyandarua county, Kenya

Abstract

Increase in agricultural productivity and profits are some of the key drivers in Irish potato farming and therefore is a clear priority for smallholder farmers. Yet little is known about how entrepreneurial competencies and agrienterprise farm capabilities may be linked with Irish potato productivity. Thus, this study sought to fill this knowledge gap by; exploring the levels and determining factors influencing entrepreneurial competencies and agrienterprise farm capabilities of smallholder Irish potato farmers in Nyandarua County, Kenya. The study also sought to determine the effect of entrepreneurial competencies and agrienterprise farm capabilities on farm performance. Data was collected through multistage sampling by cross sectional survey using a sample of 249 smallholder Irish potato farmers. The three objectives were analysed using Principal Component Analysis, Multivariate Multiple Regression and Structural Equation Modelling. Based on the findings, entrepreneurial competencies that were found to be exhibited by the farmers ranked from the highest to lowest in terms of levels possessed are as follows; personal strength competency (83%), relationship competency (73%), strategic competency (69%) and finally, opportunity competency (47%). It can be concluded that most farmers were not opportunity driven. With regards to profiling farmers’ farm capabilities ranked from the highest to lowest in terms of levels possessed; the highest exhibited capability was networking capability (71%) followed by, technology management capability (60%) followed by, market linking capability (53%) and finally, technology integration capability (47%) and marketing capability (47%). It can be concluded that farmers did not adopt new technologies in Irish potato production and were not proactive in marketing. Findings identified factors that influence development of entrepreneurial competencies as; attending entrepreneurship trainings, produce price, accessing government extension, accessing private extension, mechanizing production and, direct selling of produce at local market and non-local market. Finally, the results reveal that agrienterprise farm capabilities; technology management, market linking and, technology integration fully mediate the relationship between entrepreneurial competencies and performance. The study recommended offering agribusiness capacity building and support services to smallholder Irish potato farmers which emphasise on marketing, technology adoption and mechanization.