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

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  • Clifton Makate
  • Shephard Siziba
  • Benjamin T. Hanyani-Mlambo
  • Zvakanyorwa Sadomba
  • Nelson Mango

Abstract

This 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, enterprise-level 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.

Suggested Citation

  • Clifton Makate & Shephard Siziba & Benjamin T. Hanyani-Mlambo & Zvakanyorwa Sadomba & Nelson Mango, 2016. "The efficiency of small and medium enterprises in informal metal manufacturing in Zimbabwe: Implications for stakeholders in the agricultural sector," Development Southern Africa, Taylor & Francis Journals, vol. 33(2), pages 247-257, March.
  • Handle: RePEc:taf:deveza:v:33:y:2016:i:2:p:247-257
    DOI: 10.1080/0376835X.2015.1120656
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    Cited by:

    1. Makate, Clifton & Mango, Nelson & Makate, Marshall, 2019. "Socioeconomic status connected imbalances in arable land size holding and utilization in smallholder farming in Zimbabwe: Implications for a sustainable rural development," Land Use Policy, Elsevier, vol. 87(C).

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