The Role of Agribusiness Entrepreneurship in Enhancing Sustainability and Income Development Among Smallholder Farmers: Evidence from Rwanda

Abstract

This research examines how agribusiness entrepreneurship can support income growth and sustainability in smallholder farmers in the Nyagatare District in Rwanda. A mixed-methods study design was used to collect data using structured questionnaires on 262 farmers and supplemented by a qualitative approach of key informants. Descriptive outcomes indicated moderate-high involvement in the entrepreneurial activities, especially in using better seeds, record keeping, and diversification of the enterprise, but little value addition had been done. Crop rotation, mulching, erosion control, reduced use of chemicals, irrigation, and post-harvest technologies were implemented on a widespread adoption, whereas there were moderate adoptions of irrigation and post-harvest technologies. Regression showed that Agribusiness entrepreneurship positively impacts both income development (b = 0.482, p < 0.001) and sustainability outcomes (b = 0.361, p < 0.01). The education level and farm size were also positively influencing variables, but not gender, age, or household size. The results are consistent with the previous research, indicating that entrepreneurship is one of the ways to get better involved in the market, use technologies, and be environmentally resilient. All in all, the research finds that agribusiness entrepreneurship should be encouraged to improve the livelihoods in rural areas, make them more sustainable, and increase the economic resilience of smallholder farmers in Rwanda. It suggests increased training, better access to finance, as well as investing in value-addition and market infrastructure in order to make the most out of entrepreneurial effects.