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Targeted Interventions for Enhancing Business Development Services in Improving Agri-SME Performance in Nairobi, Kiambu and Machakos Counties, Kenya

Author

Listed:
  • Margaret Wambui Ngetha

    (Kenyatta University, Nairobi, Kenya.)

  • Bernard Njehia

    (Kenyatta University, Nairobi, Kenya.)

  • Macharia Ndegwa

    (Kenyatta University, Nairobi, Kenya.)

Abstract

Business Development Services (BDS) have increasingly been recognised as an important mechanism for strengthening the managerial, financial, technical and operational capabilities of small and medium enterprises (SMEs), particularly those operating within agricultural value chains. This study examined targeted interventions for enhancing the effectiveness of BDS in improving the performance of Agri-SMEs in Nairobi, Kiambu and Machakos Counties, Kenya. Specifically, the study assessed the contribution of BDS to Agri-SME performance, determined the core BDS components most strongly associated with enterprise performance, and identified interventions required to improve BDS effectiveness. A cross-sectional survey design was adopted, and data were collected from 125 Agri-SMEs using structured questionnaires. Ten BDS providers were also selected, comprising six from Nairobi, two from Kiambu and two from Machakos. Descriptive statistics, chi-square tests, independent-samples t-tests, one-way ANOVA, Tukey HSD and correlation analysis were used to examine relationships and differences. The findings indicated a high perceived contribution of BDS to enterprise performance, with an overall mean of 4.12. Technical assistance recorded the highest component mean (4.11), followed by training (4.07), management consulting (4.03) and financial management support (3.99). Technical assistance had the strongest positive correlation with Agri-SME performance (ρ = 0.681, p < 0.001), while overall BDS demonstrated a strong positive correlation with performance (ρ = 0.704, p < 0.001). Major constraints included limited access to finance, high production costs and limited market access. The study concluded that BDS effectiveness could be enhanced through affordable, demand-driven, enterprise-specific, continuous and coordinated support.

Suggested Citation

  • Margaret Wambui Ngetha & Bernard Njehia & Macharia Ndegwa, 2026. "Targeted Interventions for Enhancing Business Development Services in Improving Agri-SME Performance in Nairobi, Kiambu and Machakos Counties, Kenya," Post-Print hal-05743907, HAL.
    • Handle: RePEc:hal:journl:hal-05743907
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