Determinants of Financial Sustainability of Small Scale Sunflower Oil Processing Firms in Tanzania

Anastasia Njiku; Ganka Daniel Nyamsogoro

doi:doi:10.11648/j.ijber.20190803.16

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Determinants of Financial Sustainability of Small Scale Sunflower Oil Processing Firms in Tanzania

Anastasia Njiku, Ganka Daniel Nyamsogoro

Received: 3 April 2019 Accepted: 31 May 2019 Published: 19 June 2019

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Abstract

Financial Sustainability of firms as a necessary condition for institutional permanence and long-lasting service has attracted scholarly attention in both developed and developing world over several decades. Little attention however, has been paid to small scale agro-processing firms’ context in developing economies like Tanzania. This study was set to investigate factors influencing financial sustainability of small scale sunflower oil processing firms in Tanzania. The study used 219 small scale sunflower oil processing firms randomly selected in central sunflower agricultural corridor of Dodoma and Singida regions in Tanzania. Data collected were analyzed by using Hieratical Multiple Linear Regression model, where a number of firm specific factors were considered as important determinants of financial sustainability while controlling for differences in technical efficiency levels. It was found that location of the firm, age of the owner and training of the employees are statistically significantly influencing financial sustainability in sunflower oil processing firms in Tanzania. In addition, technical efficiency contributes significantly on financial sustainability of small scale sunflower oil processing firms (SSSOPF). The findings imply the need for the government and other agencies in the sector to nurture entrepreneurial aspirations in tender age and consider clustering firms in the designed industrial areas for easy accessibility of inputs and support services. Moreover, improving technical efficiency is a pre-requisite for financial sustainability of SSSOPF in Tanzania.

DOI	10.11648/j.ijber.20190803.16
Published in	International Journal of Business and Economics Research (Volume 8, Issue 3, June 2019)
Page(s)	125-132
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Determinants, Financial Sustainability, Small-Scale Sunflower Oil Processing

References

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Anastasia Njiku, Ganka Daniel Nyamsogoro. (2019). Determinants of Financial Sustainability of Small Scale Sunflower Oil Processing Firms in Tanzania. International Journal of Business and Economics Research, 8(3), 125-132. https://doi.org/10.11648/j.ijber.20190803.16

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ACS Style

Anastasia Njiku; Ganka Daniel Nyamsogoro. Determinants of Financial Sustainability of Small Scale Sunflower Oil Processing Firms in Tanzania. Int. J. Bus. Econ. Res. 2019, 8(3), 125-132. doi: 10.11648/j.ijber.20190803.16

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AMA Style

Anastasia Njiku, Ganka Daniel Nyamsogoro. Determinants of Financial Sustainability of Small Scale Sunflower Oil Processing Firms in Tanzania. Int J Bus Econ Res. 2019;8(3):125-132. doi: 10.11648/j.ijber.20190803.16

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@article{10.11648/j.ijber.20190803.16,
  author = {Anastasia Njiku and Ganka Daniel Nyamsogoro},
  title = {Determinants of Financial Sustainability of Small Scale Sunflower Oil Processing Firms in Tanzania},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {3},
  pages = {125-132},
  doi = {10.11648/j.ijber.20190803.16},
  url = {https://doi.org/10.11648/j.ijber.20190803.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190803.16},
  abstract = {Financial Sustainability of firms as a necessary condition for institutional permanence and long-lasting service has attracted scholarly attention in both developed and developing world over several decades. Little attention however, has been paid to small scale agro-processing firms’ context in developing economies like Tanzania. This study was set to investigate factors influencing financial sustainability of small scale sunflower oil processing firms in Tanzania. The study used 219 small scale sunflower oil processing firms randomly selected in central sunflower agricultural corridor of Dodoma and Singida regions in Tanzania. Data collected were analyzed by using Hieratical Multiple Linear Regression model, where a number of firm specific factors were considered as important determinants of financial sustainability while controlling for differences in technical efficiency levels. It was found that location of the firm, age of the owner and training of the employees are statistically significantly influencing financial sustainability in sunflower oil processing firms in Tanzania. In addition, technical efficiency contributes significantly on financial sustainability of small scale sunflower oil processing firms (SSSOPF). The findings imply the need for the government and other agencies in the sector to nurture entrepreneurial aspirations in tender age and consider clustering firms in the designed industrial areas for easy accessibility of inputs and support services. Moreover, improving technical efficiency is a pre-requisite for financial sustainability of SSSOPF in Tanzania.},
 year = {2019}
}

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TY  - JOUR
T1  - Determinants of Financial Sustainability of Small Scale Sunflower Oil Processing Firms in Tanzania
AU  - Anastasia Njiku
AU  - Ganka Daniel Nyamsogoro
Y1  - 2019/06/19
PY  - 2019
N1  - https://doi.org/10.11648/j.ijber.20190803.16
DO  - 10.11648/j.ijber.20190803.16
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
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EP  - 132
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20190803.16
AB  - Financial Sustainability of firms as a necessary condition for institutional permanence and long-lasting service has attracted scholarly attention in both developed and developing world over several decades. Little attention however, has been paid to small scale agro-processing firms’ context in developing economies like Tanzania. This study was set to investigate factors influencing financial sustainability of small scale sunflower oil processing firms in Tanzania. The study used 219 small scale sunflower oil processing firms randomly selected in central sunflower agricultural corridor of Dodoma and Singida regions in Tanzania. Data collected were analyzed by using Hieratical Multiple Linear Regression model, where a number of firm specific factors were considered as important determinants of financial sustainability while controlling for differences in technical efficiency levels. It was found that location of the firm, age of the owner and training of the employees are statistically significantly influencing financial sustainability in sunflower oil processing firms in Tanzania. In addition, technical efficiency contributes significantly on financial sustainability of small scale sunflower oil processing firms (SSSOPF). The findings imply the need for the government and other agencies in the sector to nurture entrepreneurial aspirations in tender age and consider clustering firms in the designed industrial areas for easy accessibility of inputs and support services. Moreover, improving technical efficiency is a pre-requisite for financial sustainability of SSSOPF in Tanzania.
VL  - 8
IS  - 3
ER  -

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Author Information

Anastasia Njiku

Department of Accounting and Finance, University of Dodoma, Dodoma, Tanzania
Ganka Daniel Nyamsogoro

Department of Accounting and Finance, Mzumbe University, Morogoro, Tanzania

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Plain Text BibTeX RIS

APA Style

Anastasia Njiku, Ganka Daniel Nyamsogoro. (2019). Determinants of Financial Sustainability of Small Scale Sunflower Oil Processing Firms in Tanzania. International Journal of Business and Economics Research, 8(3), 125-132. https://doi.org/10.11648/j.ijber.20190803.16

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ACS Style

Anastasia Njiku; Ganka Daniel Nyamsogoro. Determinants of Financial Sustainability of Small Scale Sunflower Oil Processing Firms in Tanzania. Int. J. Bus. Econ. Res. 2019, 8(3), 125-132. doi: 10.11648/j.ijber.20190803.16

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AMA Style

Anastasia Njiku, Ganka Daniel Nyamsogoro. Determinants of Financial Sustainability of Small Scale Sunflower Oil Processing Firms in Tanzania. Int J Bus Econ Res. 2019;8(3):125-132. doi: 10.11648/j.ijber.20190803.16

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@article{10.11648/j.ijber.20190803.16,
  author = {Anastasia Njiku and Ganka Daniel Nyamsogoro},
  title = {Determinants of Financial Sustainability of Small Scale Sunflower Oil Processing Firms in Tanzania},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {3},
  pages = {125-132},
  doi = {10.11648/j.ijber.20190803.16},
  url = {https://doi.org/10.11648/j.ijber.20190803.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190803.16},
  abstract = {Financial Sustainability of firms as a necessary condition for institutional permanence and long-lasting service has attracted scholarly attention in both developed and developing world over several decades. Little attention however, has been paid to small scale agro-processing firms’ context in developing economies like Tanzania. This study was set to investigate factors influencing financial sustainability of small scale sunflower oil processing firms in Tanzania. The study used 219 small scale sunflower oil processing firms randomly selected in central sunflower agricultural corridor of Dodoma and Singida regions in Tanzania. Data collected were analyzed by using Hieratical Multiple Linear Regression model, where a number of firm specific factors were considered as important determinants of financial sustainability while controlling for differences in technical efficiency levels. It was found that location of the firm, age of the owner and training of the employees are statistically significantly influencing financial sustainability in sunflower oil processing firms in Tanzania. In addition, technical efficiency contributes significantly on financial sustainability of small scale sunflower oil processing firms (SSSOPF). The findings imply the need for the government and other agencies in the sector to nurture entrepreneurial aspirations in tender age and consider clustering firms in the designed industrial areas for easy accessibility of inputs and support services. Moreover, improving technical efficiency is a pre-requisite for financial sustainability of SSSOPF in Tanzania.},
 year = {2019}
}

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TY  - JOUR
T1  - Determinants of Financial Sustainability of Small Scale Sunflower Oil Processing Firms in Tanzania
AU  - Anastasia Njiku
AU  - Ganka Daniel Nyamsogoro
Y1  - 2019/06/19
PY  - 2019
N1  - https://doi.org/10.11648/j.ijber.20190803.16
DO  - 10.11648/j.ijber.20190803.16
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 125
EP  - 132
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20190803.16
AB  - Financial Sustainability of firms as a necessary condition for institutional permanence and long-lasting service has attracted scholarly attention in both developed and developing world over several decades. Little attention however, has been paid to small scale agro-processing firms’ context in developing economies like Tanzania. This study was set to investigate factors influencing financial sustainability of small scale sunflower oil processing firms in Tanzania. The study used 219 small scale sunflower oil processing firms randomly selected in central sunflower agricultural corridor of Dodoma and Singida regions in Tanzania. Data collected were analyzed by using Hieratical Multiple Linear Regression model, where a number of firm specific factors were considered as important determinants of financial sustainability while controlling for differences in technical efficiency levels. It was found that location of the firm, age of the owner and training of the employees are statistically significantly influencing financial sustainability in sunflower oil processing firms in Tanzania. In addition, technical efficiency contributes significantly on financial sustainability of small scale sunflower oil processing firms (SSSOPF). The findings imply the need for the government and other agencies in the sector to nurture entrepreneurial aspirations in tender age and consider clustering firms in the designed industrial areas for easy accessibility of inputs and support services. Moreover, improving technical efficiency is a pre-requisite for financial sustainability of SSSOPF in Tanzania.
VL  - 8
IS  - 3
ER  -

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