CHAPTER 2
REVIEW OF RELATED LITERATURE
Cost
According to Kimani, Wamukota, Manyala & Mlewa (2020), costs, which differ greatly,
are a significant factor in profitability as well. In some fisheries, variable costs are typically higher
than fixed costs, while in others, they are lower. There are also considerable differences in pricing
according to the type of gear. Rodifi and Vadifis (2019) clearly defined variable costs as the entire
costs for all fishing trips throughout the year, excludes labor costs. They cover the price of the fuel,
lubricant, liquid gas, bait, food, and small repairs made while fishing. They are the results of
multiplying the average vessel variable cost by the number of days in each fishing trip. In the other
hand, fixed costs are the overall cost of the boat's, engine's, fishing equipment, and other
equipment's yearly repairs and maintenance. The quantity of fishing excursions has little effect on
fixed costs.
Waldo, Paulrud, and Blomquist (2020) uses two separate analyses; the vessel segment
analysis and gear analysis. Data for all fishing gears employed by the fishers within a segment are
gathered as a result of the vessel segment analysis, which maintains the fishing company as the
analysis's unit of analysis. Using vessel length and major target species as criteria, the fishermen
are divided into vessel segments. The analysis combines information on catch losses as a result of
seals eating from nets with information on costs associated with gear maintenance, etc., as a result
of seals, to evaluate the influence on economic feasibility. Detailed information on the sealinduced costs for all significant gear types in all significant Swedish fishing locations is provided
by the gear analysis, which estimates the seal costs for each gear type utilized in Swedish fisheries.
Due to the fact that passive gear is almost solely used by vessels involved in seal interaction, both
the vessel segment analysis and the gear analysis only include small-scale fisheries.
Sangun, Guney, & Bark (2018) recorded the main inputs leading to inefficiency in the
output performance of small-scale fishers of East Mediterranean of Turkey are determined as
vessel maintenance expenditures (15.4%), fishing gear repair or purchase expenditures (12.3%)
and labour costs (12%).
In the report of Food and Agriculture Organization of United Nations (FAO), traditional
credit delivery methods have substantial transaction and monitoring costs, especially in rural areas
where many SSF are located and which are underserved and unbanked. Digital technology
adoption is anticipated to lower these expenses and broaden the accessibility of credit services.
The use of digital technology, according to several of the financial institutions' responders, not
only increases their own productivity but also makes it easier for their customers to obtain loans.
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