Orientation: Participating in the agriculture and agro-processing chain has the potential to enhance the competitive advantage of small-scale agricultural enterprises in South Africa.Research purpose: The study empirically investigated the extent to which agro-processing participation is determined by human and social capital factors, while accounting for the moderating effects of transaction costs.Motivation of the study: Research is required that examines levels of human and social capital of small-scale agripreneurs, as these act as major constraints towards improved competitiveness of agribusinesses.Design: To test the study hypotheses, a structured questionnaire was administered to 166 small-scale agripreneurs at farmer gatherings across regions in South Africa.Findings: Based on the survey results, both human and social capital factors showed a positive and significant influence on agro-processing participation. The findings further highlight the importance of market access and transaction costs to small-scale agripreneurs.Practical implications: Policy-makers need to be aware of how human capital factors such as previous education and experience impact participation in agro-processing activities and help to mitigate transaction costs.Contribution: Study findings are highly relevant to South Africa as agro-processing and value-adding activities are not always scale dependent, and hence, a focus on human and social capital is valuable.

There has been a proliferation of scholarly and practitioner interest in improving the competitiveness of small and medium agribusinesses involved in value-added processing activities in Africa. However, despite such interest, there is a paucity of entrepreneurship-focused research on the competitiveness of small and medium agribusinesses. Consequently, the purpose of this study was to test the relationship between the influence of entrepreneurial orientation and the compliance with standards of value-added processing facilities on the competitiveness of small and medium agribusinesses. Moreover, the moderating effects of entrepreneurial capital on this relationship were tested since entrepreneurial resources are firm-specific, potentially heterogeneous, and may be converted into tangible resources and effective market power. A survey was administered to a sample of 243 small and medium agribusinesses involved in value-added processing activities in South Africa. The study used hierarchical and sequential regression analysis to test the study models, which included testing for moderation effects. The results highlight that agribusiness competitiveness was enabled by higher levels of entrepreneurial capital, which is used by enterprises to integrate and leverage entrepreneurial orientation. It is recommended that policy makers prioritise and promote entrepreneurial orientation and develop entrepreneurial capital by offering programmes and incubation facilities targeting agribusinesses involved in value-added processing activities.