The efficiency of small and medium enterprises in informal metal manufacturing in Zimbabwe: Implications for stakeholders in the agricultural sector

Abstract

The International Center for Tropical Agriculture (CIAT) believes that open access contributes to its mission of reducing hunger and poverty, and improving human nutrition in the tropics through research aimed at increasing the eco-efficiency of agriculture.CIAT is committed to creating and sharing knowledge and information openly and globally. We do this through collaborative research as well as through the open sharing of our data, tools, and publications. Citation:Makate, Clifton; Siziba, Shephard; Hanyani-Mlambo, Benjamin T.; Sadomba, Zvakanyorwa; Mango, Nelson. 2016. The efficiency of small and medium enterprises in informal metal manufacturing in Zimbabwe: Implications for stakeholders in the agricultural sector. Development Southern Africa. Routledge Taylor & Francis, 11 p. AbstractThis study uses the structure-conduct-performance framework to examine the structure and efficiency of small and medium enterprises in the informal metal manufacturing sector in Zimbabwe. Small and medium enterprises provide a lifeline to the country's resource-poor farmers, whose numbers increased exponentially after the agrarian reform in 2000. The study utilises nationally representative, enterpriselevel data from five major towns (Harare, Chitungwiza, Bulawayo, Mutare and Rusape) in Zimbabwe.Various performance measures are applied at the industry level to assess efficiency, profitability and competitiveness; these include the Herfindahl-Hirschman index, concentration ratios, average yearly profits and Tobin's q ratio. The results indicate that small and medium enterprises in Zimbabwe are modestly efficient, profitable and competitive. These findings highlight the need to integrate informal metal fabrication activities into Zimbabwe's national economic development plans.

Conceptual Model Based on Normative Multi-Agent System for Supply Chain Integration of Brazilian Gypsum LPA

“…One of the approaches widely used to conceptualize and represent the influence of enterprises and institutions on the market is based on the Theory of Industrial Economics, which seeks to adapt to the internal and external forces required by the economic relations of the market. This approach is recognized by the Structure-Conduct-Performance (SCP) Paradigm which provides data from organizations, establishing an important relation among how enterprises are being conducted within their industry, their structures and their economic performance (Makate, Siziba, Hanyani-Mlambo, Sadomba & Mango, 2016).…”

Measuring inefficiency of MSEs in the food processing sector

“…A study by Charoenrat et al (2013) also implied that SMEs and MSMEs have a high technical inefficiency level in the production process. On the other hand, the research conducted by Ramadani & Boedirochminarni (2017) demonstrated the efficient performance of MSMEs that the government coached MSMEs inefficiencies were also found in the informal metal fabrication companies in Zimbabwe, indicating a high level of technical inefficiency in the production process (Makate et al, 2014).…”