Factors influencing entrepreneurial orientation levels among agri-input suppliers in Nakuru county, Kenya

Abstract

Start-ups and small-scale agri-input suppliers (AIS) play critical roles in Kenya’s agricultural development sector. Nakuru county is the leading producer of flowers, potatoes, milk and vegetables in Kenya; creating an enabling environment for AIS start-upsto thrive. However, competition from established, medium and large-scale agri-enterprises put them at risk of closure or inhibition of their potential to survive the environmental turbulence and grow into medium or large-scale enterprises.Entrepreneurial orientation (EO) manifestations, in the form of proactiveness, innovation, and risk-taking, among other internal aspects, are considered necessary for any agri-enterprises’ start-up success, as they positively influence their growth and performance. The objective of this study was to understand factors influencing EO levels among agri-input suppliers in Nakuru County, Kenya.A study involving a sample of 137 agri-input suppliers operating in Nakuru County was carried out using face-to-face semi-structured questionnaire. Data collected were analysed using Principal Component Analysis, Quartile technique, and the Generalised Ordered Logit (GOL) model. Overall, the variety of traded agri-input products showed the most significant positive influence on EO levels, followed by possession of business plan, partnership, customers’ contracts and gender factors, in that order of magnitude. On the other hand, years ofagri-enterprise operation and the number of agri-input business owners showed negative influence on EO levels. The list of prioritised significant factors is important in informing agripreneurs, policy makers and socio-economic development agencies when designing development programmes and strategies aimed at promoting agripreneurship in Kenya.