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Does participation in socially responsible business practices affect the performance of food processing enterprises: Lessons from youth-owned businesses?

Czech University of Life Sciences Prague, Fac. of Tropical AgriSciences - Dept. of Economics and Development, Czech Republic

Abstract

The integration of Business Socially Responsible (BSR) into business operations has received increasing attention due to its potential impact on business performance and sustainability. To address both observed and unobserved bias in the study, we employed propensity score matching and endogenous treatment effect models to examine the factors influencing the participation of youth-owned food processing enterprises in socially responsible business practices. It examines the different outcomes for practising and non-practising youth-owned food processing enterprises. Quantitative and qualitative data were collected through face-to-face interviews with 244 youth-owned food processing enterprises from three regions of Ghana in 2021. The results show that most entrepreneurs (50%) are highly educated. The average age of the businesses was four years, while eight different food categories were processed. The probit regression results showed that the food processor's record keeping and business start-up motivation positively influenced Business Socially Responsible. Subsequently, social media presence had a positive effect on food processors' BSR practices. An interesting aspect of the study was comparing business performance between young food processors who participated in socially responsible business practices and those who did not. The results showed that young food processors who participated in BSR had a higher net profit than their counterparts who did not participate in BSR. This suggests a positive correlation between participation in socially responsible business practices and business performance among young food processors. The study concludes that active involvement in BSR activities improves business performance among young food processors. The study concludes that active participation in BSR activities improves the business performance of young food processors. These findings underscore the potential benefits of incorporating socially responsible practices into business operations to enhance the economic success of young entrepreneurs in the food processing industry.

Keywords: Business socially responsible, food processors, Ghana

Contact Address: Bernard Kwamena Cobbina Essel, Czech University of Life Sciences Prague, Fac. of Tropical AgriSciences - Dept. of Economics and Development, Kamýcká 129, 16500 Prague-Suchdol, Czech Republic, e-mail: esselbftz.czu.cz