SMEs are a fundamental part of the economic fabric in developing countries and they play a crucial role in furthering growth, innovation and prosperity. In Zimbabwe, the SME sector has been reckoned by smallholders; farmers, miners etc. as it supplies intermediate technologies to resource-poor small scale players. This paper employs a stochastic frontier production function and technical inefficiency effects model to measure and explain the technical efficiency of informal metal fabricating firms in Zimbabwe. Analysis relied on cross-sectional firm level data from a survey conducted on informal metal fabricating SMEs between July 2012 and April 2013. Average technical efficiency was found to Download
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