Investigating the Influence of Entrepreneurial Capital on Small-Scale Farm Performance in Namibia’s Agricultural Sector

Abstract

Background/Problem: Agriculture is the primary livelihood for approximately 70% of Namibia’s population and accounts for 20% of national employment. However, its contribution to GDP remains disproportionately low at only 5%. Despite its importance, there is limited empirical data on the role of entrepreneurial capital in enhancing small-scale farm performance, making it difficult to inform effective policy or guide resource allocation within the sector. In particular, the influence of specific dimensions of entrepreneurial capital -human, social, and financial- on farm performance outcomes such as revenues and yields remains unclear. Purpose/Objectives: This study aims to investigate the influence of entrepreneurial capital—specifically human, social, and financial capital—on small-scale farm performance in Namibia. Grounded in Resource-Based Theory, the Sustainable Livelihoods Framework, and the Community Capitals Framework, the research seeks to test the hypothesis that each of these capital dimensions positively affects farm revenues and production yields. Methodology: A non-experimental, cross-sectional quantitative design was employed. Structured questionnaires were distributed online via Qualtrics to 1,050 purposively selected small-scale farmers across Namibia’s 14 regions, using networks from the Namibia Agronomic Board and other agricultural associations. Data were analysed using SPSS, with sampling adequacy tested using the KMO Bartlett’s test. Exploratory factor analysis (EFA) with principal axis factoring and Promax rotation was used to validate constructs. Financial capital failed to meet factor loading thresholds and was excluded from further analysis. Reliability was confirmed using Cronbach’s alpha, and composite scores were created for each variable. Assumption testing preceded regression analysis to test the hypothesized relationships. Results: The findings indicate that human capital had a negative, statistically insignificant effect on both farm revenues and yields. Social capital showed a positive, significant influence on farm revenues but an insignificant effect on yields. Financial capital could not be included in the final regression due to insufficient factor convergence during validation. Implications/Future Research: These findings suggest that social networks and relationships may be more critical to revenue generation than technical or educational inputs alone. Future research should consider disaggregating the capital dimensions into sub-categories to uncover more nuanced relationships. Moreover, a larger, more diverse sample may enhance generalizability and clarify marginally significant findings.