Financial analysis of small-scale tree nurseries: A case of Kiboga Town Council
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Small- scale tree nurseries contribute substantially to the development of a country’s economy. They are an economic activity which can create viable employment for a number of families in a country and due to high demand for tree planting by people in their farms, around their homes, a great number of these have been established so as to raise tree seedlings and supply them so as meet the available demand. But in carrying out this business, operators incur costs and expect to obtain profits in the long run just like how other business ventures are operated. The study therefore, aimed at the financial analysis of these small-scale private tree nurseries in Kiboga Town Council Kiboga District for the March- June 2018 production season. Data on the tree species mostly raised in the tree nurseries and the sources of their Germplasm, costs and returns and challenges faced by nursery operators were collected The study was qualitative in nature and data was collected using methods of observation, and interviewing using questionnaires. On analysis the data was entered into SPSS and analyzed using cross tabulations and cost-benefit analysis in which descriptive statistics like frequencies were developed. The study found out that many nursery operators had small sized land on which they operated with many males than females. The most raised species included eucalyptus and pinus caribaea species, and few raised fruit trees. From the study, it was found out that all the nurseries investigated made profits for the March-June 2018 production season. Challenges that the nursery operators faced included pest and disease incidences, inadequate finances, high competition among roadside operating tree nurseries; theft cases since they were located along the roads. The study concluded that Entrepreneurs were the key players in most tree nurseries. Finally the study recommended that nursery operators should practice records keeping for improvement on their production through identifying where they made losses and work towards preventing them for profit maximization. Also urban forest nurseries operators should be advised on water use efficiency and storage in order to help for the proper utilization.