Factors Influencing Choice of Differentiation Strategy among Small-Scale Potato Enterprises in Nakuru County, Kenya

Abstract

Potato crop plays a crucial role in national food nutrition and ensures food security that alleviates poverty among small-scale potato farmers in Kenya. Potato farming is characterized by several constraints leading to declining production and yields in Kenya. This paper determined factors influencing the choice of differentiation strategy among small-scale potato enterprises in Nakuru County, Kenya. The study used a descriptive research design to produce statistical information about factors influencing differentiation strategy among small-scale potato enterprises. A semi-structured questionnaire was used to elicit information from a sample of 267 respondents in Molo Sub County where the primary data collected was analyzed using the probit regression model. The study findings indicate that age, education level, farmer group, access to storage, proactiveness behaviour, and cosmopoliteness behaviour influenced the choice of differentiation strategy among small-scale potato enterprises. It was concluded that participation in farmer groups and access to a storage facility and entrepreneurial behaviour skills drive small-scale potato farmers to build and maintain a sustainable competitive advantage in the small-scale potato enterprises in Nakuru County. The government needs to provide technical assistance, credit support, and provide storage facilities for potato farmers to improve competitiveness in the small-scale potato enterprises.