Assessing factors affecting growth of small scale agro enterprises in central division, Lugazi municipality.

Abstract

This study aimed at assessing the factors affecting growth of small scale agro enterprises in Central Division, Lugazi municipality. A cross sectional study involving 106 respondents who were sampled randomly was used to collect data. The study adopted quantitative approach where semi structured questionnaire was used to collect data. Data was analysed using descriptive statistics for objective 1 and 3 while a multiple linear regression model was used to analyse objective 2. The findings indicate that female respondents dominate the study while most of the respondents were singles aged between 30-39 years. The study also proved that most of the small scale agro entrepreneurs attained secondary level of education (50%). Majority of the small scale agro entrepreneurs had household size between 1-5 members. The major small scale agro enterprises carried out in the study area include crop production, livestock farming and agro processing. Most enterprises are sole proprietorships, primarily selling their products to the local markets and majority lacking employees and not involved in value addition activities. The findings revealed that entrepreneurial and managerial capabilities, access to finance, access to technology, market factors and linkages, government policies, infrastructural development and access to resources have significant and positive effects on the growth of the small scale agro enterprises at p=0.05 while access to training and skills development does not have a statistically significant effect on the growth of small scale agro enterprises. The study revealed that major challenges faced by the small scale agro entrepreneurs include perishability, unsupportive government policies, limited capital, price fluctuation, competition, limited market, untrustworthy customers and disease outbreak. Therefore government should invest in rural infrastructures such as roads and storage facilities so as to facilitate better access to markets. Leaders in the local markets should create cooperatives among small scale agro entrepreneurs to enhance collective bargaining power while also investing in marketing training programs.