Comparative performance of power tillers as an enterprise: individual versus group business model options in Arusha and Manyara Regions, Tanzania
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Date
2017
Authors
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Journal ISSN
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Publisher
Sokoine University of Agriculture
Abstract
The aim of this study was to undertake a comparative analysis of the performance of a
power tiller as an enterprise owned under individual and group ownership business
models in Arusha and Manyara region. Specifically, the study aimed to i) undertake an
inventory of 2WT and ownership distribution; ii) assess and compare the physical
performance and iii) financial performance of 2WT under individual and group business
models; and iv) evaluate the effect of ownership and other factors on the performance
indicators of 2WT. The study involved a total of 47 individual owners and 34 group
owners of power tillers from three districts Meru, Arusha rural in Arusha region and
Babati district in Manyara region. Descriptive statistics, comparing means by hypothesis
testing and regression analysis were used for data analysis. The study revealed that group
owners of power tillers had higher annual net returns compared to individual owners, due
to several factors including; group owners owned brand new power tillers with higher
proposition of Kubota tractors which were the most efficient compared to other models
of power tillers. Consequently, group owners had low maintenance cost compared to
individual owners, in addition to that, high maintenance cost was a result of lack of
trained and skilled mechanics who have knowledge on power tillers, and unavailability
of spare parts. The most popular activity was transportation, however the highest
significant paid activities were ploughing and tillage. It was recommended that
individual owners should increase their share of ploughing and tillage in services
provided. The government should facilitates individual owners as well as group owners
to purchase brand new power tillers by promoting the use of Kubota power tillers. The
government should widen the inputs fund so that individuals as well as groups can access
credit for acquiring power tillers.
Description
M.Sc. Dissertation
Keywords
Power tillers, Group business model, Arusha Region, Manyara Region, Tanzania, Comparative performance indicators