Management Strategies and The Performance of Youth Agri-Businesses in Kenya: A Case of Farm Africa
DOI:
https://doi.org/10.47941/jepm.454Keywords:
Differentiation Strategy, Cost Leadership Strategy, Focus Strategy, Access to Finance and Performance, Youth Led AgribusinessAbstract
Purpose: The general objective of the study is to assess management strategies and performance of youth agribusinesses in Kenya: case of Farm Africa. Three research objectives were used; to find out the effect of differentiation strategy on the performance of youth led agribusiness at Farm Africa, to establish the effect of cost leadership strategy on the performance of youth led agribusiness at Farm Africa, and to assess the effect of focus strategy on the performance of youth led agribusiness at Farm Africa.
Methodology: This study adopted a case study research design. The study population was all the 30 youth who participates in agribusinesses. Census method was then used since the population was manageable. This research study used questionnaires as the primary research instruments for data collection. A statistical tool known as Statistical Packages for Social Sciences (SPSS version 20) (Park, 2015) were used for the process of data analysis. The data that was collected was analyzed by use of descriptive statistics and Pearson Correlation analysis method as well as regression analysis.
Findings: The study concludes that differentiation costs had positive significant relationship with the performance of agribusinesses at Farm Africa. The study concludes that cost leadership strategy led in the improvement of performance of agribusinesses at Farm Africa. The study concludes that majority of the farmers that were studied adhered to focus strategy because it helped them in improving overall performance of agribusinesses at Farm Africa. The study concludes that finance was a key determining factor in the performance of agribusinesses.
Unique contribution to theory, practice and policy: The study recommends that farmers at Farm Africa need to adhere to product differentiation such that they cannot easily be copied by rivals. The study recommends that farmers should have flexible product costs together with water tight market price strategies that could promote performance. The study recommends that in order to enhance focus strategy, farmers should strive to exploit differences in cost behavior in market segments in order to improve agribusiness performance. The study recommends that policy makers should come up with farmer friendly financial policies that will cushion farmers from high interest rates charged by financial institutions such as MFIs and commercial banks.Downloads
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