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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Technical Efficiency of Small- and Medium-Scale Enterprises: Evidence from a Survey of Enterprises in Tanzania
Authors:Admassie, Assefa
Matambalya, Francis A.S.T.ISNI
Year:2002
Periodical:Eastern Africa Social Science Research Review (ISSN 1027-1775)
Volume:18
Issue:2
Period:June
Pages:1-29
Language:English
Notes:biblio. refs., ills.
Geographic terms:Tanzania
East Africa
Subjects:small enterprises
efficiency
Development and Technology
Economics and Trade
Economics, Commerce
Small business
Medium enterprises
economic development
developing countries
External link:http://muse.jhu.edu/journals/eastern_africa_social_science_research_review/v018/18.2admassie.pdf
Abstract:The significance of small- and medium-scale enterprises (SMEs) is acknowledged worldwide. SMEs form the vanguard of the modern enterprise sector and present the propelling force of economic modernization and growth in developing economies. But it is imperative to examine their efficiency levels in order to formulate appropriate policies for the development of SMEs. In this study, the level of technical efficiency of SMEs in Tanzania has been examined using a Cobb-Douglas stochastic frontier production function. The findings indicate that higher levels of technical inefficiency, which reduce their potential output levels significantly, characterize the Tanzanian SMEs. Assisting these firms to improve their technical efficiency through adequate supply of inputs, markets and credit facilities, and undertaking extensive infrastructural development and training could be important measures. Bibliogr., notes, sum.
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