Analysing Logistics Drivers of the Performance of Small Agricultural Traders in Dodoma City

Abstract

Small Agricultural trade contributes significant portion to the agribusiness as it makes a total of 28% of GDP and employs about 80% of the labor force. Thus, it is among the potential areas of investment which has a positive impact on the individual and national wide economic advancement. The study aimed at analysing logistics drivers of small agricultural traders in Dodoma City. Specific objectives were to determine the contribution of innovations on the Micro agricultural trader’s performance, to identify the contribution of logistics networks on the small agricultural traders’ performance and to unveil challenges facing agricultural small traders’ performance. Descriptive research design was adopted where the primary and secondary data were collected by using questionnaires and interview guide. Samples of the study were obtained purposively as only participants who are actively involved in agribusiness were included. The areas of study were Majengo and Sabasaba Market in Dodoma City. Data were coded, classified and analyzed descriptively by using SPSS. The findings revealed that there is positive correlation between innovation and agribusiness performances. The use of modern communication technology, storage facilities, mechanised handling facilities, Quality transportation facilities and electronic record keeping increases the pace of business performances. Moreover, the good distribution network reduces costs, enhances fast delivery of products and maximises sales. Tight business regulations and low level of technology found to be the main stumbling blocks affecting the performance of agribusiness. The study recommends that initiatives should be placed on innovation capabilities; creating enabling business environment and revising tight business regulations such as taxes, bureaucracies and environment regulations and enhancing capacity building on technological adoption in order to eliminate the observed challenges in agribusiness operations.