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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.

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Human–social capital and market access factors influencing agro-processing participation by small-scale agripreneurs: The moderating effects of transaction costs