scholarly journals Estimation of Technical Efficiency of Micro and Small-Scale Manufacturing Enterprises in Selected Towns of Jimma Zone, Oromia National Regional State

2019 ◽  
Vol 11 (4(J)) ◽  
pp. 88-101
Author(s):  
Haile Girma ◽  
Gadisa Abera Dinka ◽  
Mohammedsani Ali Gelan

This study was conducted to estimate the technical efficiency of micro and small-scale manufacturing enterprises in Selected Towns of Jimma Zone, Oromia National Regional State by using the Stochastic Frontier Approach. The analysis used Cross-sectional data which was collected from 343 Micro and small-scale manufacturing enterprises in 2018. The finding shows the mean technical efficiency of sampled Micro and Small-Scale Manufacturing Enterprises is about 54.8% and output value-added is positively affected by capital input and raw material, but negatively affected by labor input. The finding from the inefficiency model indicates that technical inefficiency of sampled Micro and Small-Scale Manufacturing Enterprises is negatively affected by the amount of finance used for initial investment expenses; lower for enterprises which received land from the government, participate only in “Ekub”, participate in both “Ekub” and “Edir”. However, seasonal change in demand for a product is found to make technical inefficiency of enterprises higher. Thus, by improving Micro and Small-Scale Manufacturing Enterprises access to land, market, sufficient

Author(s):  
Getachew Wollie

This study analyzed the technical efficiency of barley production by smallholder farmers in Meket district, Amhara National Regional State, Ethiopia. A cross sectional data from a sample of 123 barley producers during the 2016/17 production season was collected by applying two stage random sampling. To address the objective of the study, both descriptive statistics and econometric models were used to analyze the data.  The trans-log functional form of the production function simultaneously with single stage estimation approach was used to estimate the production of barley output and technical inefficiency factors. The estimated stochastic production frontier model indicated that input variables such as fertilizer, human labor and oxen power were the significant variables to increase the quantity of barley output while, barley seed had a negative effect. The estimated mean levels of technical efficiency of the sample farmers were about 70.9% which revealed that, presence of a room to increase their technical efficiency level on average by 29.1% with the existing resources. The discrepancy ratio gamma indicated that 63% of the total variation from the frontier comes due to technical inefficiency while, the remaining 37% comes due to factors outside the control of farmers. Among the hypothesized factors that affect technical inefficiency; education level, extension contact and number of barley plots significantly and negatively affected technical inefficiency score. Besides, practice of crop rotation, distance of residence from the nearest main market, total expenditure and soil fertility was found to have a positive and significant effect. Hence, emphasis should be given to decrease the inefficiency level of those more inefficient farm households via experience sharing among the farmers and usage of improved or certified barley seed. Besides to this, policies and strategies of the government should be directed towards increasing farmers’ education, improve the system of input distributions and institutional facilities.


Author(s):  
Getachew Wollie

This study analyzed the technical efficiency of barley production by smallholder farmers in Meket district, Amhara National Regional State, Ethiopia. A cross sectional data from a sample of 123 barley producers during the 2016/17 production season was collected by applying two stage random sampling. To address the objective of the study, both descriptive statistics and econometric models were used to analyze the data.  The trans-log functional form of the production function simultaneously with single stage estimation approach was used to estimate the production of barley output and technical inefficiency factors. The estimated stochastic production frontier model indicated that input variables such as fertilizer, human labor and oxen power were the significant variables to increase the quantity of barley output while, barley seed had a negative effect. The estimated mean levels of technical efficiency of the sample farmers were about 70.9% which revealed that, presence of a room to increase their technical efficiency level on average by 29.1% with the existing resources. The discrepancy ratio gamma indicated that 63% of the total variation from the frontier comes due to technical inefficiency while, the remaining 37% comes due to factors outside the control of farmers. Among the hypothesized factors that affect technical inefficiency; education level, extension contact and number of barley plots significantly and negatively affected technical inefficiency score. Besides, practice of crop rotation, distance of residence from the nearest main market, total expenditure and soil fertility was found to have a positive and significant effect. Hence, emphasis should be given to decrease the inefficiency level of those more inefficient farm households via experience sharing among the farmers and usage of improved or certified barley seed. Besides to this, policies and strategies of the government should be directed towards increasing farmers’ education, improve the system of input distributions and institutional facilities.


2020 ◽  
Author(s):  
Assefa Ayele Anaye ◽  
Kassa Tarekegn Erkalo

Abstract Introduction Ethiopia is the largest wheat producer in Sub-Saharan Africa and wheat is one of the major staple food crops in many parts of the country. However, due to technical and socioeconomic factors the productivity of wheat is below the estimated potential. As a result of this the country remains a net importer of wheat. To improve this problem, row planting of wheat with improved level of efficiency becomes more crucial. This study was aimed to measure technical efficiency, yield gap due to inefficiency and identify the factors that influence the efficiency levels of wheat producers’ row planting and broadcasting methods in Hadiya zone, southern Ethiopia. Cross sectional data from 203 farmers from both row planting and broadcasting methods were selected using multistage sampling procedure and analyzed using stochastic frontier Cobb–Douglas production. Results and Conclusions Descriptive results indicated that the average wheat output in row planting (3250 kg/ha) was 1360 kg/ha higher than in broadcasting (1890 kg/ha). The estimated results of the Cobb-Douglas frontier model shows that the mean technical efficiency was 83.4% and 57.8% under row planting and broadcasting respectively. About 646.882 kg/ha under row planting and 1393.038 kg/ha under broadcasting of wheat output was lost due to inefficiency. This reveals that under the existing practices there is a room to increase wheat yield more under broadcasting (42.2%) than row planting (16.6%) following the best-practiced farms in the study area. The SPF model indicates that NPS, urea, labor and seed, are significant determinants of wheat production level in both methods. The estimated SPF model together with the inefficiency parameters shows that education, age, fertility status of the plot, family size and extension contact negatively and significantly affected technical inefficiency whereas land fragmentation positively and significantly affected technical inefficiency of wheat farmers. Hence, emphasis should be given to improve the efficiency level of those less efficient farmers by adopting the practices of relatively efficient farmers in the area. Beside this, policies and strategies of the government should be directed towards the above mentioned determinants.


Author(s):  
Teklu Gebretsadik ◽  
Dinku Negash

The study was carried out in selected districts of Gedeo zones of southern Nation nationality and people’s regional state: such as Wonago, Kochere and DillaZuria/chichu/ districts. The objective of the study was to asses production systems, opportunities and constraints of apiculture farming in Gedeo zones of SNNPRs. Beekeeping is a long-standing practice in the study districts and appears as ancient history of the country as a whole. A cross sectional study, in which 90 households were purposively included and conducted in selected district to assess the current beekeeping practices, production potentials and production constraints. Most (72%) of the beekeepers in the study area have owned only traditional hives and produce honey for home consumption. The beekeeping practice was dominated by male.  Despite the area have  production constraints, the area opportunities like existence of large sized natural forest and artificial forest, due attention provision from regional, federal and local government and nongovernmental organizations, yearly flowering and variety floral availability, some small scale farmers highly experienced in apiculture farming, market access and high demand of apicultural products at nationally and international level. Therefore, Designing effective honeybee pests and predators controlling methods, Introduction of full package improved beekeeping technologies with adequate practical skill training on all bee keeping trends and queen rearing practices promoting beekeepers important indigenous knowledge, Producing areal major honeybee plants in large scale, Avoiding discarding of bee colonies after honey harvest, Availing the strategies to support farmers with beekeeping business support services, Improving pre- and post-harvest handling of bee products and Improving the utilization of stingless bee’s resources, without damaging the colony is important to make the honey production system in the area more economical, so as to enhance bee products for national and international need.


Author(s):  
Forbes Chiromo ◽  
Goodwell Muyengwa ◽  
Joseph Makuvaza

AbstractThis study investigates the extent to which tenants in a jewellery incubator in the Limpopo Province of South Africa network. Since 1994 SEDA has set up more than 31 incubation centres in furniture making, construction, chemicals, jewellery, ICT, metal fabrication, agriculture and small scale mining. This study was done through a survey conducted on tenants in the SEDA Limpopo Jewellery Incubator (SLJI). Information was obtained through a structured questionnaire. The study revealed how tenants benefit from networking around exhibitions and collective purchasing of raw material. Through the Incubator institutional mechanisms, the study explains how tenants share expertise, experiences, technology and resources. Unfortunately the tenants do not initiate the own networking programmes. They lose out on benefits associated with collective effort in other areas such as advertisements, lobbying the government for industrial stands, organising an newsletter, hiring of consultants, and organising joint training programmes. Lastly the study identified opportunities that the tenants could collectively exploit in order strengthen and sustain their businesses.


2012 ◽  
Vol 9 (22) ◽  
pp. 40
Author(s):  
Scott W. Lyon ◽  
Henry Quesada-Pineda ◽  
Robert L. Smith

The purpose of this research was to determine drivers and barriers of Appalachian wood product competitors in Central America. Potential market opportunities for Appalachian forest product companies in Central America were evaluated and strategies were developed to increase exports of Appalachian wood products to Central America. The findings support the claim that United States forest product companies have not put enough effort into marketing forest products to Central America. Forests in El Salvador, Panama, and Costa Rica are limiting harvests and the industry lacks support from the government, reducing the amount of raw material and production. Inconsistencies between Appalachian and Central American wood products industries (e.g., dimensions) act as a barrier to the efficient exchange of wood products. The best market strategies for Appalachian forest products companies to increase sales into Central America are: partner with local wholesalers, offer higher value-added products, and maintain similar pricing with competition. An outside source of wood is needed to meet the needs of growing regional infrastructure.


Author(s):  
Rubab Fatema Nomani

Small-scale industries play a crucial role in industrialisation of India. These industries face numerous problems, some of which are peculiar to them, while others are common to both small-scale and large-scale industries. The COVID-19 pandemic has unleashed unprecedented threats as well as opportunities on this sector. This article tries to analyse the problems affecting the entrepreneurs associated with 141 micro-manufacturing enterprises in the Dibrugarh district of Assam and puts forward some policy suggestions. In order to identify the most pressing problem faced by the entrepreneurs, the Garrett ranking method is employed in the study. It is found that dearth of skilled labour is the most acute problem encountered by the sector. Lack of proper marketing arrangements, shortage of quality and cheap raw materials, obsolete technology and lack of timely finance are other important hindrances. The significance of skilled labour points to the intense need for continuous skill development of the local workforce by establishing more technical institutes, training programmes, etc. Furthermore, the government should provide special assistance for technological upgradation, develop institutional marketing facilities, and supply cheap and quality raw materials. Further, simplification of procedures in banks’ lending policies, relaxation of requirements like collateral security and margin money may go a long way in enhancing both confidence and performance of small entrepreneurs.


Author(s):  
Ma. Teresa B. Lirag

The presence of cacao industry plays a critical role in the economic development of a country. A study was conducted to determine the cost, return and added value along the value chain stages of cacao in Camarines Sur, Philippines. Sixty-eight farmers served as respondents using purposive sampling technique and interviews/key informant surveys were conducted. Results of the study showed that cacao production has high return on investment of 77.89% and 160% for the farmer and processor, respectively but a low return on investment of 13% for traders. The value added from farmer to processor is Php 590.00/kilogram, and Php 125.00/kilogram from processor to trader. Various opportunities and prospects for cacao production had been identified such as increased technical and production support from the government, presence of R & D programs, increasing trend towards wellness & healthy lifestyle, and increasing businesses offering cocoa-based products. Recommendations include improvement in access and availability of processing facilities, improvement of market information for farmers, provision of trainings to enhance capability of farmers, strengthening of farmers’ groups to increase their access to technical and financial assistance from government and provision of infrastructure support and storage facilities.


Author(s):  
Jacobs Chineze J. ◽  
Ezeokafor Uche R. ◽  
Ekwere Gabriel E.

The study looked at the effect of entrepreneurial education on unemployment reduction among students in Chukwuemeka Odumegwu Ojukwu University, Igbaria. The problem of the study is as a result of increasing rate of unemployment in Nigeria. The study was anchored on Human Capital Theory and risk taking theory. As a cross-sectional survey research design, a structured instrument of (5) points Likert Scale was developed by the researchers to obtain information from the respondents. The population of the study was limited to final year students of Business Administration and Entrepreneurship Studies Department in Chukwuemeka Odumegwu Ojukwu University, Igbariam. The total population was 195. Business administration was 128 while entrepreneurship was 67. The study used convenience sampling technique in selecting the sample size for the study based on convenience and easy accessibility to the respondents. Research hypotheses were tested using Multiple Regression Analysis (MRA) which was carried out with the aid of Statistical Package for Social Science (SPSS). Findings from the study revealed that Skill acquisition has a significant effect on unemployment rate, Entrepreneurship empowerment affects unemployment reduction, Infrastructural development has significant effect on unemployment reduction in Anambra State. The study recommended that entrepreneurial studies be encouraged in tertiary institutions where students are exposed to various entrepreneurial skills development leading to job creation and financial independence after their graduation. In doing this, more jobs will be created and people engaged meaningfully for the good of their family and the society at large. Soft loan should also be made available by the government to encourage the activities of small scale business in Nigeria


Sign in / Sign up

Export Citation Format

Share Document