African Research Journal of Education and Social Sciences, Vol. 10 (2), 10-25, 2023
Author: Rosemary Mbithe Munguti
Tangaza University College, Catholic University of Eastern Africa,
P.O Box 15055 – 00509, Nairobi, Kenya
E: mbitherosemary1990p@gmail.com
Abstract: Despite the recognized potential of organic small-scale agri-business enterprises to contribute to sustainable agriculture and rural development, the limited access to finances poses a significant challenge to their growth and expansion. The lack of adequate financial resources hinders these enterprises from capitalizing on market opportunities, adopting modern agricultural practices, and scaling up their operations. As such, the current study intended to examine the influence of access to finances on the growth of organic small-scale agri-business enterprises in Kajiado County. A descriptive survey research design was adopted in the study. The target population comprised of 900 Organic small-scale farmers in Kajiado County. There were two hundred and ten (210) Agribusiness Micro and Small Enterprises which formed the accessible population of the study. One hundred and thirty-eight (138) Agribusiness Micro and Small Enterprises out of 900 Agribusiness MSE constituted the sample for the study. The study employed structured questionnaires to collect quantitative data as the only convenient means for data collection. The research instrument was pilot tested before its administration for data collection in the main study. The rationale behind pilot testing was to assess any potential weaknesses in the research instrument. Further data analysis was done with the help of use of Statistical Package for Social Sciences (SPSS version 21) software. The Study findings were presented using frequency tables, pie charts and bar charts. Quantitative data was analyzed through descriptive analysis. The study found out that Access to finances plays a crucial role in the growth and development of organic small-scale agri-business enterprises in Kajiado County. However, it remained a significant challenge for farmers and agri-business owners in the region. Limited access to formal financial services, high-interest rates, lack of financial literacy, and insufficient collateral posed formidable challenges for farmers and agri-business owners. These obstacles hinder their ability to invest in essential resources and adopt sustainable practices, thereby limiting their growth and development. Addressing the finance accessibility challenge requires collaborative efforts, including the development of tailored financial solutions, comprehensive financial literacy training, and supportive policies.
Keywords: access to finances, growth of organic small-scale agri-business enterprises, organic small-scale agri-business, agri-business enterprises, financial resources, organic farming Kenya
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Suggested Citation
Mbithe, M. R. (2023). Influence of Access to Finance on the Growth of Organic Small-scale Agri-Business Enterprises in Kajiado County, Kenya. African Research Journal of Education and Social Sciences, 10(2), 10-25. Available online at http://arjess.org/social-sciences-research/influence-of-access-to-finances-on-the-growth-of-organic-small-scale-agri-business-enterprises-in-kajiado-county-kenya.pdf
