Effect of entrepreneurial behaviour on small scale potato farm performance: Evidence from Kenya

ver the years, small scale potato farm enterprises have recorded low potato productivity and profitability. This poor performance could be attributed to poor entrepreneurial culture and skills, and low entrepreneurial behaviour portrayed by the small scale potato farmers. This paper models the effect of entrepreneurial behaviour on the performance of small scale potato farm enterprises in a high density potato producing area of the Central Rift Valley Region in Kenya. A structured questionnaire was used to collect data from 267 respondents using multistage sampling techniques. Principal component analysis was run to check the reliability and construct variability of entrepreneurial behaviour attributes. Seemingly unrelated regression model was used to analyse the effect of entrepreneurial behaviour on farm performance. The results indicate that age and farming experience influenced entrepreneurial behaviour of potato farmers; while age, education level, farming experience, credit access, training, group membership, and risk-taking had an impact on farm performance. It was concluded that risk-taking behaviour had an impact on small scale potato farm performance. The study recommended that entrepreneurial behaviour and farm performance are the important indicators for agriculture development in Kenya. Small scale potato farmers should develop entrepreneurial behaviour skills through participation in farmer group activities and interaction with extension officers to learn new agricultural practices and improve on their farm performance. Key words: Agribusiness, entrepreneurial behaviour, farm enterprise, Kenya, potato farming