Relationship between Value Addition Strategies and Growth of Women Owned Agri-Based Enterprises in Rural Areas in Kenya

Abstract

Value addition is a strategic approach to enterprise development that is perceived   to influence growth of new enterprises while creating jobs for owners and their employees. Technological   applications are cited as a challenge to rural women business owners in terms of accessibility and cost. On the other hand, value addition could maintain the vibrancy and sustainability of agricultural production sector. In most African countries including Kenya, rural agriculture is highly feminized; the bulk of rural agribusiness is women owned. Enterprises' value rating and competitiveness depend on value addition strategies selected for use by business owners.  In agricultural production, rural based enterprises apply a wide range of post-harvest value addition options within their means to remain competitive. Vast literature suggests that rural economic growth can be best achieved by promoting women agri- based activities. It is estimated that upto 95% small scale agricultural production is lost in post-harvest wastages; post-harvest value addition reduces post-harvest wastages which go hand in hand with catalysis of promotion of rural women enterprises. Kenya's agricultural production is dominantly marketed at   primary production with limited value addition.  The study explored the relationship  of value addition strategies  and growth  of  women owned agri-based  enterprises in  rural areas in Kenya through the following four  objectives: to establish the  relationship  between the packaging strategy of agricultural products and the  growth of  women owned agri-based enterprises   in  rural Kenya; to establish the nature of valued additions in women owned agri-based enterprises. The study used stratified survey research design and anchored onbusiness growth model, the organizational life cycle theory, resource-based view theory and porter's value chain theory. The study targeted   1626 women business owners out of whom 488 respondents were selected using stratified sampling method and purposive sampling for the 13 key respondents sampled from a total of 35. Quantitative data was collected using questionnaires, while interview schedules, observation schedules and focus group guide were used to collect qualitative data. Statistical Package for Social Sciences (SPSS) was used to perform statistical analysis and results were analyzed using   descriptive and inferential statistics.  The study found a positive and statistically significant relationship between packaging strategy and growth of rural women owned agri-based enterprises (r=.956; p < 0.05). The qualitative analysis revealed that value addition is determined by stakeholders' support in availing appropriate technology, finances, infrastructure and that traditional methods of value addition are less likely to meet quality standards set by highly bureaucratic costly government procedures in order to promote growth of enterprises.It was concluded that growth of women owned agri-based enterprises had a confluence with the value addition strategies used as was demonstrated in positive correlation. The study recommends more support on use of technology in value addition strategies for competitive advantage and growth of women owned agri-based enterprises in rural   Kenya. Further research should target other counties of Kenya for comparative findings on variety of strategies of value addition used on agricultural products processed by women in these other zones.  Future studies should focus on establishing and evaluating influence of value addition practices on large organizations for comparative purposes.