Comparative Performance Of Power Tillers As An Enterprise: Individual Versus Group Business Model Options In Arusha And Manyara Regions, Tanzania

ABSTRACT

The aim of this study was to undertake a comparative analysis of the performance of a power tiller as an enterprise owned under individual and group ownership business models in Arusha and Manyara region. Specifically, the study aimed to i) undertake an inventory of 2WT and ownership distribution; ii) assess and compare the physical performance and iii) financial performance of 2WT under individual and group business models; and iv) evaluate the effect of ownership and other factors on the performance indicators of 2WT. The study involved a total of 47 individual owners and 34 group owners of power tillers from three districts Meru, Arusha rural in Arusha region and Babati district in Manyara region. Descriptive statistics, comparing means by hypothesis testing and regression analysis were used for data analysis. The study revealed that group owners of power tillers had higher annual net returns compared to individual owners, due to several factors including; group owners owned brand new power tillers with higher proposition of Kubota tractors which were the most efficient compared to other models of power tillers. Consequently, group owners had low maintenance cost compared to individual owners, in addition to that, high maintenance cost was a result of lack of trained and skilled mechanics who have knowledge on power tillers, and unavailability of spare parts. The most popular activity was transportation, however the highest significant paid activities were ploughing and tillage. It was recommended that individual owners should increase their share of ploughing and tillage in services provided. The government should facilitates individual owners as well as group owners to purchase brand new power tillers by promoting the use of Kubota power tillers. The government should widen the inputs fund so that individuals as well as groups can access credit for acquiring power tillers.