Obstacles and Performance of Agribusiness Enterprises: Evidence from South-Kivu Eastern Democratic Republic of Congo

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. A Chi-square test is used to identify relationships between location and enterprise characteristics and business obstacles. Results reveal less participation of females in ownership and management. Access to finance still the main obstacle faced by all firms. The scarcity of electricity, transportation cost, and lack of equipment are perceived as severe and moderate obstacles. The analysis of variance shows that urban firms are able to generate a higher profit margin than rural firms. These results are helpful for policymakers to promote the food and agribusiness sector in order to reduce poverty and enable SME growth in Eastern of the Democratic Republic of Congo (South Kivu region).