Abstract

The objective of this study is to analyze differences between business obstacles and performance by their location using 92 food and agribusiness firms operating in rural and urban areas. Descriptive statistics, chi-square and analysis of variance are used to evaluate data collected through household surveys. Chi-square test are used to identify relationships between location and enterprises characteristics and business obstacles. Results reveal a less participation of female in ownership and management. Access to finance still the main obstacle faced by all firms. Scarcity of electricity, transportation cost and lack of equipment are perceived as severe and moderate obstacles. The analysis of variance show that urban firms are able generate higher profit margin than rural firms. These results are helpful for policymakers to promote food and agribusiness sector in order to reduce poverty and enable SME growth in Eastern of the Democratic Republic of Congo (South Kivu region).

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