Profitability Analysis of Women Entrepreneurs on Palm Oil Refinery in Kigoma Municipal, Tanzania

Abstract

This paper was analyses the profitability of the women entrepreneurs on oil palm refinery at Kigoma Municipal in Tanzania for year 2024 using variables of age of respondent, education level of respondent, experience in business, purchasing cost, labor cost, transportation costs during buying, refinery charge and selling price. Data were collected using a structured questionnaire administered to a random sample of 65 oil palm women entrepreneurs. The data were analyzed using (SPSS) to determine descriptive statistics, profitability analysis and Multiple Linear Regression Model (MLRM)results. The obtained results showed that the highest cost for oil palm refinery process stages is Tsh 1,200,000.00 = (70.5%) for labor charges of average total variable costs per year. The profitable analysis showed that oil palm refinery process in the study area is an average gross margin (TR)-(TVC) per women enterprises of oil palm refinery was Tshs. 2,589,000.00 per year while the net profit was estimated at Tshs. 2,533,000.00.  The benefit cost ratio of the entire enterprise was 2.44, thus indicating an additional return for every one shilling selling on oil palm refinery or processed. The multiple regression models revealed that the experience in oil palm refinery process enterprises, cost of seed purchasing, labor cost, costs of refinery process and cost of selling oil has a positive and significant relationship with profitability of women entrepreneurs’ success (β = 0.108, 0.084, 0.214, 0.347and 0.088, p value > 0.05). The adjusted R2 of the model was 0.86 which means the independent variables explain 86% of the variation in the profit per 20 litres of the oil palm enterprises. This paper recommends Small and Medium Enterprises (SMEs), policymakers, and practitioners to encourage women entrepreneurs to run their businesses for the long term by providing a variety of incentives and supports related to those internal and external factors. Also to expanding and up-scaling oil palm refinery production for providing adequate investment capital to operate so that can be guaranteed loans to the oil palm women entrepreneurs untouched and touched of refinery process specifically at Kigoma Municipal in Tanzania.