Drivers of Small-Scale agribusiness performance in Ghana: Evidence from the Nkoranza South district

Abstract

This study investigated managerial expertise, information asymmetry, transaction cost, and access to credit as drivers of small-scale agribusiness performance in the Ghanaian context. Sales and employment growth were used in measuring performance. A cross-sectional study based on a positivist philosophy was adopted, and a multiple linear regression analysis was executed to test the impact of these drivers on the sales growth and employment generation of SSABs, measured in terms of employment and sales growth. The same technique was implemented to assess the predictive effects of business technology, business age, and managers' educational level on the SSAB performance.

The research employed the Resource Based View (RBV) as the theoretical lens. Primary data were collected in the survey by administering structured questionnaires to a sample of 200 SSABs in the Nkoranza South District of the Borneo East District. Of the 200 questionnaires distributed,192 were returned, generating a response rate of 96 %. After that, multiple regression analyses and the spearman correlation coefficient were employed to determine the relationships among the variables and their combined predictive power.

The findings revealed that managerial expertise, information asymmetry, transaction cost, and access to credit positively impact SSAB sales and employment growth at a 1% significant level. Secondly, firm and business owner characteristics such as business technology, business age, and managers' educational level correlate positively with sales and employment growth. The correlations are statistically significant at the 1% level.

This study adds to the limited research on SSABs. The findings have important implications for policy and practice regarding improving SSAB performance in Ghana. It also creates a knowledge base for SSAB owner managers to acquire the correct information for management decision-making, reduction in transaction cost, and sources of government financial support for SSABs to achieve higher performance.