A comparison of economic performance of emerging and established fishing enterprises at Lake Kariba, Zimbabwe

Abstract

This research compares the economic performance of established and new entrants in kapenta fishing industry at Kariba in Zimbabwe. The paper uses primary data to compare profitability, technical and marketing ecomonies of scale between established and emerging companies. The results show that both company types have positive net profit. Emerging companies with generally less fishing units have higher technical economies of scale than establsihed ones. Emerging companies use illegal fishing practices to catch more fish using less operating costs. The results show that established companies have higher marketing economies of scale largely because of contractual arrangements established over time.