Understanding growth patterns and success enablers of food-based MSMEs in central Malawi

This study investigates the growth dynamics of food-based Micro, Small, and Medium Enterprises (MSMEs) in Kasungu District, Malawi, theorising food entrepreneurship as a structurally distinct category shaped by product perishability, cash-intensive daily operations, and deep embeddedness in household food security. Using cross-sectional survey data from 269 food entrepreneurs and log-linear OLS regression with dual growth indicators, sales revenue, and asset accumulation, the study identifies the micro-level determinants of enterprise growth and connects them explicitly to the macro-level goals of food security and poverty reduction. The findings reveal a pronounced gender paradox: female entrepreneurs accumulate significantly more business assets than their male counterparts (mean MWK 4,215,360 vs. MWK 1,629,787; p = 0.021) yet generate lower monthly sales, suggesting that women prioritise asset retention as a risk-management strategy under conditions of capital constraint. Working capital is the strongest and most consistent predictor of both growth indicators, confirming its role as a major constraint on performance and a proximate determinant of market food availability. Business network membership is strongly and positively associated with sales (β = 1.233, p < 0.01), while larger household size exerts a significant negative effect on asset accumulation (β = −0.066, p < 0.05), reflecting consumption pressures that crowd out business reinvestment. Access to credit is negatively associated with both outcomes, consistent with credit functioning as a coping mechanism among financially constrained firms rather than a growth driver. Business registration and rented premises negatively predict asset accumulation, pointing to cost burdens that limit reinvestment capacity. The study recommends targeted credit access programmes to relieve working capital constraints, gender-sensitive enterprise support that builds on women’s demonstrated asset-accumulation capacity, facilitated networking platforms for food entrepreneurs, and formal entrepreneurship training calibrated to the operational realities of food MSMEs. Longitudinal research using panel data is needed to establish causality and track growth trajectories over time.