An Investigation on the Entrepreneurial Factors that Influence the Performance of Coffee Marketing Co-Operatives in Nyeri County

Abstract

Agriculture is the backbone of many African economies. Co-operatives as marketing vehicles deliver the commodities to the market in return to gain the desired remuneration on behalf of the farmers. Co-operatives are responsible for 45 per cent of the GDP and 31 per cent of national savings and deposits. Agricultural co-operatives' total turnover was $112 million. They have 70 per cent of the coffee market, 76 per cent dairy, 90 per cent pyrethrum, and 95 per cent of cotton. The objective of the study was to determine the influence of entrepreneurial factors on the performance of coffee marketing cooperative societies in Nyeri County. The independent variables used in the research were marketing capabilities, environmental turbulence against the dependent variable of performance of coffee marketing societies. The study utilized descriptive survey. The target population was 23 coffee co-operatives in Nyeri County and the 23 general managers were the key informants in the study who responded to the questionnaires. The study revealed entrepreneurial factors such as marketing capabilities, environmental turbulence, and entrepreneurial orientation greatly influence the performance of coffee marketing co-operative society's profitability and growth in Nyeri County. The study recommends that all coffee marketing co-operative societies should strengthen entrepreneurial orientation capabilities and manage the coffee marketing environmental turbulence. The Nyeri co-operative County policy makers and planners should to put in place social-economic equity measures necessary to mitigate the declining global coffee prices that greatly influence the performance of coffee marketing co-operative societies to benefit the stakeholders in coffee industry as a whole. The research recommends further areas of factors retard their development is another important area for future research in coffee marketing co-operatives.