Effect of agribusiness program on youth participation and growth of micro and small horticultural enterprises in Morogoro and Pwani regions, Tanzania

Abstract

Youth unemployment is among the major challenges in many developing countries, including Tanzania. Consequently, the government together with development partners have come up with strategic initiatives to increase youth involvement in the agricultural sector because it is the largest contributor to the country's economy. Despite the efforts, youth participation in agribusiness activities especially the horticultural sub-sector, is still low. Therefore, the aim of this study was to contribute towards the sustainable growth of small and micro horticultural enterprises (MSEs) through enhanced youth agribusiness programs. Specifically, the study characterized various youth horticultural MSEs, evaluated the effect of the youth hands-on agribusiness skills program on youth decision and extent of participation in horticultural MSEs, and finally determined factors influencing the growth of youth horticultural MSEs. A sample of 157 respondents comprising 51 participants and 106 non-participants of the program were selected through a multi-stage sampling procedure. Data was collected using a semi-structured questionnaire through a face-to-face interview. Descriptive statistics indicated that participants of the program were slightly older, had more years of schooling, and more farming experience with higher non-farming income than non-participants. Also, program participants had many years in social groups, higher access to extension services, higher initial start-up capital, and higher sales revenues than non-participants. The Double Hurdle Model (DHM) revealed the presence of positive and significant relationship between participation in the youth hands-on agribusiness skills program on youth decision and extent of participation in horticultural MSEs at 1% and 5% levels. Having family members in agribusiness, farming experience and access to farming inputs positively influenced youth decision to establish horticultural MSEs, while respondents‟ place of birth and land access had a negative impact. On the other hand, being head of household, non-farming income, credit access, and distance to output markets had positive effect on the extent of participation, while years in social groups, marital status, and age had a negative influence. Finally, the Multiple Linear Regression results revealed that household size, extension contacts, and MSEs located in the residential areas contributed to MSEs' growth positively, while education level, sole proprietor ownership, credit access and land access reduced the growth of youth MSEs. This study recommends for the need to invest in youth hands-on agribusiness programs since they have noticeable and desirable economic gains. Also, effective policies and strategies on agribusiness sector should be put in vii place to enhance the easy accessibility of crucial productive resources to improve the general outlook of the sector so that it becomes more appealing to young people.