An overview of small Agro-Processing firms in employment creation of mbeya and morogoro, Tanzania

The small agro-processing sub-sector is one of the most important in employment creation. It is widely acknowledged that sustained growth of small agro-processing firm is an engine for growth of employment and income generation. The study therefore, examined descriptively the employment creation trends of small agro-processing firms in Morogoro and Mbeya regions in Tanzania, over the period 2002–2011, using time series and cross sectional data. A total of 107 small agro-processing firms were selected for this study. The analysis revealed that most of the firms operated under capacity, hence employing below their capacity. The average number of jobs created per firm, per year was only forty nine due to; low supply of raw-materials, inadequate sources of capital and high cost of energy. The study recommended that the production of high quality of agro-products should be improved as well as financing small agro-processing firm to create more jobs. Training of small agro-processing firms workers should be considered for increasing production hence creating employment.