Influence of Entrepreneurship Practices on Agribusiness Transformation in Tanzania: A Vertical Integration Role on Grains

Abstract

The study examined the influence of entrepreneurship practices on agribusiness transformation among agribusiness owners in the Mbeya region. Specifically, it examined the effect of agricultural production technologies on postharvest storage and assessed the effect of marketing practices and agro-processing practices on agribusiness transformation. It explored the effect of vertical function on agribusiness transformation on grains. A cross-sectional study design consisting of both qualitative and quantitative data was applied. A sample of 254 agribusiness owners involved in grain production was purposively selected. The study used interviews and structured questionnaires to collect primary data. The reliability and validity test generated an estimated Cronbach’s Alpha value of 0.889, which indicates good internal consistency. Multiple Ordinal Logistic Regression was used to determine the influence of entrepreneurship practices on agribusiness transformation. The finding shows that there is insignificant influence (p > 0.05) of agricultural production technology practices on agribusiness transformation, whereas postharvest storage, marketing and agro-processing practices indicate significant influence on agribusiness transformation (P<0.05). However, the moderation role of vertical function reveals significant negative prediction (-1.193) on agribusiness transformation. Correlation analysis reveals a significant positive, strong correlation between marketing practices and total agribusiness transformation. Government and key actors in the agribusiness value chain are advised to formulate and implement appropriate policies, programs, and strategies to enhance appropriate entrepreneurship practices necessary for agribusiness transformation