Climate Change Risks and Climate Adaptation in Agro‐Processing Enterprises

ABSTRACT While climate change research has focused mainly on primary agriculture, evidence shows that Agro‐processing enterprises also face climate risks affecting resource availability and use. Using Partial Least Squares‐Structural Equation Modelling (PLS‐SEM), this study analysed how socio‐demographic factors (sex, age, marital status, education, and training) influence participation in agro‐enterprises and climate adaptation strategies among 113 agro‐processing enterprises in Gauteng, South Africa. Results show that direct participation in Agro‐processing does not significantly predict adaptation ( β = 0.025), indicating profit‐driven rather than resilience‐oriented engagement. Education significantly enhances participation in Agro‐processing ( β = 0.325, 95% CI = [0.196, 0.457]) and adaptation ( β = 0.325, 95% CI = [0.168, 0.477]), with a positive indirect effect ( β = 0.106, 95% CI = [0.049, 0.173]). Sex negatively predicts participation ( β = –0.181), showing higher female involvement, while other variables were insignificant. Policy interventions should integrate climate education, targeted training, and capacity‐building initiatives to strengthen resilience among Agro‐processing enterprises.