Networks of Small Scale Agro Food Processing Enterprises in Dodoma, Morogoro and Singida Regions in Tanzania

Abstract

For some time researchers in entrepreneurship have employed the concept of the network as a means of exploring how entrepreneurs do business. More recently, attempts have been made to show how networking contributes to small firm performance. The overall research on which this chapter is based aims to show how networking contributes to economic links in small agro-processing firms' activities. This paper assessed the influence of networking of small scale agro food processing enterprises in Dodoma, Morogoro and Singida Regions in Tanzania. Primary data were collected from 134 small agro processing firms. Secondary data were collected from Sokoine National Agricultural Library (SNAL), District councils, TRA, SIDO, Ministry of Industry and Trade, Ministry of agriculture, Tanzania Chamber of Commerce Industry and Agriculture (TCCIA), and National Bureau of Statistics and cluster officials. The paper focuses on a specific objective namely an understanding of the process of small firms' networking. The paper provides an in-depth analysis on the forms and structure of networks and how networks can facilitate linkage between local small-scale agro-processing firms and international firms. Data were collected using structured questionnaire. Data were analyzed using descriptive statistics. The analysis was grouped into how entrepreneurs value the contacts they make and their impact on business performance. The study also investigated the nature of organizational networks amongst agro-food processing firms and how network functions are translated into business performance. The findings indicate that agro-food processing firms value their sub-sectorial associations data were analysed using descriptive statistics. Results show that that small agro-food processing firms value their sub-sectorial associations. The findings also show that belonging to non-business-related associations is relevant in their business. This is however not the implication of getting direct assistance from these none related business associations. Therefore the study concludes that there is evidence of weak forward and backward linkage in the sub-sector because of poor linkages with rural farmers. The informal distribution channels are the most used in product and input marketing among the local and poor in Tanzania. It is recommended that dedicated public and private sector support on the development of small agro-food processing firms is called for the subsequent support of subsequent business and networking of the subsector. More importance should be given to local independent business organizations, local chambers of commerce and sub-sectoral associations in terms of the flexibility and efficiency of small agro-food processing enterprises.