Strategic Management Practices And The Performance Of Small And Medium Agribusiness Enterprises (SMAEs) In Western Uganda

Introduction

The agricultural sector is the backbone of many developing countries and is regarded as “Africa’s Bread Basket” (Salami, Kamara and Brixiova, 2010). The sector is favorable to many Sub-Saharan countries because it absorbs high numbers of uneducated employees and there is high level of arable land, regular rainfall and high mineral deposits (LakerOjok, 2012). Small and Medium-sized Agribusiness Enterprises (SMAEs) play a vital role in the economic development of nations and the global economy (Sorooshian, et al, 2011). SMEs continue to be of significant importance to many developing countries and according to the OECD (2010) Report, SMEs represent 99% share of total establishments, 67% of employment, and over 50% of value added Gross Domestic Product (GDP) within the OECD community. Therefore, it is vital to understand the performance of SMAEs (Acs, 1999) as the sector has high backward linkages with the rest of the economy through its contribution particularly towards poverty reduction, job creation and improved health and nutrition (OECD, 2004; Gatukui and Katuse, 2014). Currently there is an existing literature gap and lack of data on agribusiness sector, its contributions to the economy and its general performance (Mhlanga, 2010). It appears that SME sector is in its infancy stage of development (MFPED, 2011). Smallholder farmers with limited interaction with both product and input markets dominate agriculture.