Volume 8, Issue 3, June 2019, Page: 125-132
Determinants of Financial Sustainability of Small Scale Sunflower Oil Processing Firms in Tanzania
Anastasia Njiku, Department of Accounting and Finance, University of Dodoma, Dodoma, Tanzania
Ganka Daniel Nyamsogoro, Department of Accounting and Finance, Mzumbe University, Morogoro, Tanzania
Received: Apr. 3, 2019;       Accepted: May 31, 2019;       Published: Jun. 19, 2019
DOI: 10.11648/j.ijber.20190803.16      View  98      Downloads  17
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.
Keywords
Determinants, Financial Sustainability, Small-Scale Sunflower Oil Processing
To cite this article
Anastasia Njiku, Ganka Daniel Nyamsogoro, Determinants of Financial Sustainability of Small Scale Sunflower Oil Processing Firms in Tanzania, International Journal of Business and Economics Research. Vol. 8, No. 3, 2019, pp. 125-132. doi: 10.11648/j.ijber.20190803.16
Copyright
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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