Performance of small and medium-sized food and agribusiness enterprises: evidence from Indian firms

Abstract

This paper analyses the size of food and agribusiness firms in India in relationship to business enterprise characteristics, performance, and obstacles through surveying 515 food and agribusiness firms operating in different regions of India using the World Bank's Enterprise Survey 2014. Descriptive statistics, chi-square tests and analysis of variance were used to evaluate data using statistical software. Chi-square statistics identify significant differences in enterprise characteristics through examining firm size, location, gender ownership, type and age. An analysis of variance indicates significant differences in business performance across small, medium and large enterprises in term of input and output ratios. Obstacles facing firms are largely similar regardless of firm size in eleven of the sixteen business-obstacles surveyed. Results reveal that large enterprises perceive more challenges with telecommunication services, customs, trade regulations, and corruption, while small and medium firms face greater constraints gaining access to land and finance. This study is useful in helping to design policies that can efficiently support small and medium food and agribusiness enterprise development.