MDF Theses and Dissertations

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Browsing MDF Theses and Dissertations by Author "Kavilu, John Wambua"

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    The Determining factors of financial sustainability of grant-financed seed companies in Kenya
    (Strathmore University, 2021) Kavilu, John Wambua
    Agribusiness offers an avenue for farmers to access both market information and access to reasonable funding for improved on-farm practices for enhanced productivity. This study aimed at exploring the underlying factors that determine financial sustainability of grant funded seed companies in the Kenyan agribusiness scene. The study also aimed at finding out the factors influencing successful financing of seed companies in Kenya and to further investigate financial sustainability challenges that face seed companies in Kenya. The research gap is informed by the fact that despite widespread access to extensive funding packages from various grant instruments, most seed companies in Kenya have faced severe financial sustainability challenges. A cross-sectional descriptive research design targeting 138 employees of seed companies was integrated with the principal-agent and the resource-based view theories are used to deduce the various factors that affect the financial performance of seed companies in Kenya. An overarching factor raised found to limit the financial sustainability of grant-funded seed companies is the absence of sufficient knowledge on the strategic financing options available and actions needed to steer consistent profitability. The study established that the primary factors that determine successful funding, financial sustainability challenges, and available financial options available for grant-funded seed companies are closely linked with their financial sustainability. This study suggests that seed companies that do not have access to adequate should readjust their capacity and operations to accommodate available resources in order minimize overdependence on donor funding. The study recommends further research be carried on downstream seed companies such as aggregators and to segment grant financed companies according to the type of donors.