Entrepreneurial Production Technology and Growth of Smallholder Dairy Enterprises in Kenya

Abstract

This study investigated influence of entrepreneurial production technology on growth of smallholder dairy enterprises in Kenya. The enterprises continuous respond to increasing demand for dairy products in the market from rising global populations. Dairy industry has introduced technologies, and adoption has increased productivity. In an attempt to gain and retain competitive advantage in the market, amidst environmental challenges, some related to climate change, enterprises have adopted entrepreneurial production technology. This study proposed that growth of smallholder dairy enterprises depends on the adoption of these technologies. The hypothesis was tested using a field survey on the actual technologies adopted by smallholders and extent of the adoption. Open and closed ended questionnaires were administered to a study sample of 395 smallholder dairy farmers, proportionately drawn from among active members, currently supplying milk to Githunguri, Wakulima and Nyala dairy cooperative societies in Kiambu, Nyeri, Nyandarua and Laikipia counties in high potential Central Kenya. The study established a significant positive influence of entrepreneurial production technology on growth of smallholder dairy enterprises in Kenya, supporting the idea that growth of smallholder dairy enterprises in Kenya is positively correlated to the extent of adoption of entrepreneurial production technologies in breeding, feeds production and feeding, and in waste handling. The results imply that smallholder dairy enterprises are poised to achieve greater growth when they adopt more entrepreneurial production technologies for breeding dairy cattle, feeds production and feeding and in handling waste from their dairy farms Key Words: Entrepreneurship; Entrepreneurial Production Technology; Enterprise Growth