Business Model Innovations of Small and Medium Agribusinesses in Least Developed Markets

Small and Medium Agribusinesses usually do not have the scale and scope to compete effectively on price and have to find new ways to differentiate their offerings or capitalize on new growth opportunities beyond their existing business. In today's global economy, where agribusinesses face an increasingly competitive trade and production environment, it is important the agribusinesses innovate in how they create, capture and deliver value. The study of business model innovation of small and medium scale agribusiness firms is very limited although the subject has focused on big businesses and in developed countries such as Apple, Virgin Airlines, Alibaba and others leaving out agribusiness companies, even much less those agribusinesses in developing countries. This research used cross-sectional survey research design, which was analytical and descriptive in nature in understanding the business model innovations amongst the small and medium agribusinesses in northern Uganda. It covered 79 agribusinesses (in agro-input trading, agro-processing and agro-produce trading) with 205 respondents in the study. The most understood mode of business model innovations among small and medium agribusinesses is altering value creation.