Profit Margin for Small Maize Business: A Comparative Study of Green Roasted and Dry Maize in Mbeya, Tanzania

Roasted fresh green maize harvested from farms is one of a growing small business in many towns in Tanzania.  Yet, little information is available on the profit margin differences between roasted fresh green maize and dry maize. This study therefore was conducted to investigate the profit margin differences between roasted fresh green and dry maize in Mbeya City and Mbeya District. The study employed both snowballing and random sampling plan whereby a sample of 70 respondents was collected.  Present study used SPSS in data analysis while descriptive and multiple regression techniques were employed.  As a result, the mean of profit margin, operation cost and capital invested were compared. Results showed that the profit margins of both businesses, the operation cost, as well start-up capital were statistically significant at (P<0.01), (P<0.05) and (P<0.01) levels, respectively. Suggesting that profit margin of roasted green maize was higher than of dry maize as well as the operation cost. Contrary to these, the start up capital for roasted green maize was lower than that of dry maize business. Based on survey findings it was concluded that business of roasted green maize had higher profit margin than dry maize. It is therefore recommended that the government should not restrict the green roasted maize business and that the decisions should be left to the producers and business dealers. Further, it is also recommended that the government should register all roasted green maize dealers and find a way of taxing them equally to dry maize businesses in regard to the profit generated. Key Words: Roasted fresh green maize, dry maize, profit margin, operation cost, startup capital, Mbeya University of Science and Technolog

Labour Productivity Performance of Small Agro-Processing Firms in Mbeya and Morogoro, Tanzania

This paper examines human capital factors affecting labour productivity in small agro-processing firms. Labour productivity is a measure of a firm’s efficiency that is affected by different factors, among them includes human capital factors represented by education, experience, and training. A survey of 107 agro-processing firms was conducted in Mbeya and Morogoro Regions, Tanzania. Descriptive statistics and regression analysis was employed in estimating the effect of factors on labour productivity. Results show that the trend of labour productivity among different types of small agro-processing firms varies.  Animal feed, cooking oil and milling firms tend to have higher labour productivity than bakeries and milk processing firms. Moreover, the experience of workers, education of managers and female managers has a positive effect on labour productivity in small agro-processing firms. Contrary to expectations, the number of workers with education above standard seven has a negative effect on labour productivity. Through these findings the study recommends investment in physical and human capital factors for the growth of labour productivity and employment creation. Key words: Labour productivity, Small Agro-processing firms, Tanzani

Growth of small agro-processing firms and their influence on employment creation, Tanzania

PhD. ThesisThe small agro-processing sub-sector accounts for over 80% of all firms in Tanzania. However, the firms have not been effective in absorbing new labour in the market, as reflected by the unemployment rate, which increased from 5% in 2001to 10% in 2011. The low rate of labour absorption has been partly attributed to the slow growth of small agro-processing firms, which grew by only 10%. Labour productivity also is perceived to be low. Hence firms within the sub-sector have not performed to their expected potentials. However, no in depth analysis has been done to confirm these facts, especially in relation to labour productivity and firms’ growth. This study examined the growth of small agro-processing firms and their influence on employment focusing on labour productivity in Mbeya and Morogoro Regions of Tanzania. A total of 102 firms represented different types and location in the study area. Time series and cross-sectional data were collected from sampled districts and firms. Employment creation trends, labour productivity performance and factors affecting the firm’s growth were examined using descriptive statistics and multiple regression analysis. The analysis show that about 63.6% of firms operated under capacity, hence employing below their potential due to low supply of raw-materials, inadequate capital, and poor marketing systems as well as high cost of energy. Labour productivity growth was influenced by experience, education, training and physical capital. Also the growth of firms was influenced by the value of raw-materials, manager’s education and energy cost. Small agro-processing firms in Morogoro Region grew faster (62.7%) compared to firms in Mbeya (37.3%). The difference may be due to Morogoro having better access to factor and product market hence having lower transport cost for inputs and reduced distribution cost of processed products. The study recommends that the government and non-governmental organizations to promote the production of high value of raw-material as contributing factor by 30% to growth of firms. Such interventions will have a significant effect in employment growth. Furthermore, the government and other non-governmental organization should improve human and physical capital, while emphasising technological innovation and adherence to processing products according to standards set by responsible authorities

Growth of small agro-processing firms and their influence on employment creation, Tanzania

PhD ThesisThe small agro-processing sub-sector accounts for over 80% of all firms in Tanzania. However, the firms have not been effective in absorbing new labour in the market, as reflected by the unemployment rate, which increased from 5% in 2001to 10% in 2011. The low rate of labour absorption has been partly attributed to the slow growth of small agro-processing firms, which grew by only 10%. Labour productivity also is perceived to be low. Hence firms within the sub-sector have not performed to their expected potentials. However, no in depth analysis has been done to confirm these facts, especially in relation to labour productivity and firms’ growth. This study examined the growth of small agro-processing firms and their influence on employment focusing on labour productivity in Mbeya and Morogoro Regions of Tanzania. A total of 102 firms represented different types and location in the study area. Time series and cross-sectional data were collected from sampled districts and firms. Employment creation trends, labour productivity performance and factors affecting the firm’s growth were examined using descriptive statistics and multiple regression analysis. The analysis show that about 63.6% of firms operated under capacity, hence employing below their potential due to low supply of raw-materials, inadequate capital, and poor marketing systems as well as high cost of energy. Labour productivity growth was influenced by experience, education, training and physical capital. Also the growth of firms was influenced by the value of raw-materials, manager’s education and energy cost. Small agro-processing firms in Morogoro Region grew faster (62.7%) compared to firms in Mbeya (37.3%). The difference may be due to Morogoro having better access to factor and product market hence having lower transport cost for inputs and reduced distribution cost of processed products. The study recommends that the government and non-governmental organizations to promote the production of high value of raw-material as contributing factor by 30% to growth of firms. Such interventions will have a significant effect in employment growth. Furthermore, the government and other non-governmental organization should improve human and physical capital, while emphasising technological innovation and adherence to processing products according to standards set by responsible authorities

Entrepreneurial Abilities of Technical Graduates and their Self-Employability in Tanzania

Entrepreneurship education is imperative for economic development and new economic strategies for fostering and generating jobs creating  entrepreneurs. This paper therefore assesses the influence of entrepreneurial abilities on selfemployment among technical graduates in Tanzania. It  specifically identifies the entrepreneurial skills acquired by technical graduates from technical institutions and examined the influence of  identified entrepreneurial skills on self-employment among the technical graduates in Tanzania. This study was approached quantitatively based on  explanatory survey design. Data were collected using questionnaire from 350 technical graduates sampled using stratified simple random  technique. The collected data were analysed using Multiple Linear Regressions. The findings show that to a great extent graduates from colleges  and universities acquire technical entrepreneurial skills; business management and to a small extent personal entrepreneurial skills. The findings  show further that business management was ranked highly as the leading entrepreneurial skill for self-employment among technical graduates. All  three entrepreneurial skills were found to have positive and significant influence on self-employment among technical graduates in Tanzania. The  study recommends that colleges, institutes and universities should emphatically inculcate all the entrepreneurial skills to students as they have  significant contributions to graduates self-employment.&nbsp

Growth of small agro-processing firms and their influence on employment creation, Tanzania

PhD ThesisThe small agro-processing sub-sector accounts for over 80% of all firms in Tanzania. However, the firms have not been effective in absorbing new labour in the market, as reflected by the unemployment rate, which increased from 5% in 2001to 10% in 2011. The low rate of labour absorption has been partly attributed to the slow growth of small agro-processing firms, which grew by only 10%. Labour productivity also is perceived to be low. Hence firms within the sub-sector have not performed to their expected potentials. However, no in depth analysis has been done to confirm these facts, especially in relation to labour productivity and firms’ growth. This study examined the growth of small agro-processing firms and their influence on employment focusing on labour productivity in Mbeya and Morogoro Regions of Tanzania. A total of 102 firms represented different types and location in the study area. Time series and cross-sectional data were collected from sampled districts and firms. Employment creation trends, labour productivity performance and factors affecting the firm’s growth were examined using descriptive statistics and multiple regression analysis. The analysis show that about 63.6% of firms operated under capacity, hence employing below their potential due to low supply of raw-materials, inadequate capital, and poor marketing systems as well as high cost of energy. Labour productivity growth was influenced by experience, education, training and physical capital. Also the growth of firms was influenced by the value of raw-materials, manager’s education and energy cost. Small agro-processing firms in Morogoro Region grew faster (62.7%) compared to firms in Mbeya (37.3%). The difference may be due to Morogoro having better access to factor and product market hence having lower transport cost for inputs and reduced distribution cost of processed products. The study recommends that the government and non-governmental organizations to promote the production of high value of raw-material as contributing factor by 30% to growth of firms. Such interventions will have a significant effect in employment growth. Furthermore, the government and other non-governmental organization should improve human and physical capital, while emphasising technological innovation and adherence to processing products according to standards set by responsible authorities