Business Administration

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    SMES growth challenges in Mwanza city: Evidence from food industry
    (Mzumbe University, 2015) Renatus, Deogratias
    Small and Medium-sized Enterprises (SMEs) in Mwanza are very important to economic growth. They have a significant effect on employment and economy of the country. The enterprise structure is mainly dominated by micro enterprises and the growth intensity is steady but still at a low level. Since SMEs are important contributors to economic development, it is therefore relevant to study challenges hindering their potential growth. These challenges are looked from two different perspectives; external and internal challenges which have an impact on the growth of SMEs. This research is an evidence of four SMEs (FURAHA, NDIYO, KUKU POA and SIMBA) in food industry at Mwanza city, and together with previous literature a conclusion of internal and external challenges influencing their growth can be reached. The primary data was collected through both qualitative (interviews) and quantitative (questionnaire) approaches with operators of the selected SMEs. The data was analyzed by using a Statistical Package for Social Sciences (SPSS). Specifically, descriptive statistics were taken from this tool. Descriptive analysis was used to reduce the data into a summary format by tabulation and measure of central tendency. The findings of the research reveal that there are a number of significant factors affecting SMEs growth. The major factors being financial and politico-legal factors followed by working premises, entrepreneurial factors, management, technological, marketing and infrastructural factors. They also speculate the reasons to why some of the SMEs in food industry grow while others do not. The study suggests that, The Bank of Tanzania should review the interest rates on loan because it seems to be very high; otherwise the government should find amicable solutions either to subsidize the SMEs with some sort of incentives. To make the selected SMEs competitive and profitable, increasing the capacity and skill of the operators through continuous trainings, experience sharing from successful enterprises, and provision of advice and consultancy are crucial. Moreover, improved provision of necessary infrastructure and enabling the environment for business operations is generally an imperative.
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    Role of credit guarantee in promoting SMES development in Morogoro Municipality: A case of CRDB bank plc in collaboration with PASS
    (Mzumbe University, 2015) Mary Assey, Mary
    SMEs contribute to employment, Gross Domestic Product (GDP) enhancementinnovations, human resource development and poverty alleviation. It has been found that it is not only the big businesses that provide the foundations of the nations economies, but small enterprises also play significant role in developing the economies of nationsHowever, the pace shown among SMEs that accessed credit guarantee is not promisingThe general objective of the study was to examine the role of credit guarantee in promoting SMEs development through CRDB Bank in collaboration with PASS inMorogoro municipality. Case study research design was utilized in the methodology. A sample size of 50respondents including SMEs owners and manager were used in the study. Data collected were analysed using excel software to obtain frequency and percentage distribution as major variables. The findings indicated that 80% of respondents argued that they have knowledge on how to access credit guarantee from financial or private sector trusts as assisted by PASSafter collaborating banks accept the client with the PASS business plan and the waypartial credit guarantee from PASS enable SMEs to top up in case of inadequate collateral. Likewise, 87% of respondents stated that loan conditions direct the management of the SMEs to influence the credit guarantors or lenders to either give ordeny the applications from the SMEs. This has be so from the fact that, without showingthe ability to access and utilize the loan well the credit guarantee would be deemed tonothing while channelling funds to the wrong client. Furthermore, 80% of respondentsreported that regulatory framework on accessing guarantee seemed to hinder SMEs toaccess credit easily. With these conditionalities some SMEs unable to access the creditguarantee. It is concluded that SMEs‟ needs framework that has profound effect on theirperformance as the situation and conditions of the borrowing SMEs and loancharacteristics impinge SMEs to access loans and ultimately non-repayments.
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    The contribution of information and communication technologies (ICTs) in the growth of small and medium enterprises (SMEs) in Tanzania: A case of Urban district–Zanzibar
    (Mzumbe University, 2014) Merali, Mohamed Mohamed
    It is undeniable that Information and Communication Technologies (ICTs) can play a greater role in the growth of Small and Medium Enterprises (SMEs) as revealed by many scholars in the Entrepreneurship field. Yet, more studies are to be done in order to uncover deep relationship between these two variables. This study seeks to find out the contribution that ICTs have to the growth of SMEs in Tanzania with a special case of the Urban district of Zanzibar. The study was basically attempting to answers three questions. The first question based on finding out the most suitable and available ICT devices and applications to most Tanzanian SMEs. The second question was about exploring the relationship and level of contribution ICTs provide to the business growth. The last question aimed at finding out various obstructions to the ICT usage by the SMEs. The study was targeted to the Micro, Small and Medium enterprises in the respective district that are in use of one or more types of ICT devices and applications. Of which 75% of the respondents participated in the study with fair representation plus four Key Informants (KI) from Zanzibar Chamber of Commerce, Zanzibar Labor Commission, Zanzibar Youth Vision Center and the Ministry of Trade, Zanzibar, one member from in each institution. Study findings have shown that mobile phone, computer and the CCTV camera are the most available devices, while internet, websites, Microsoft office applications and statistical applications are the most available applications in the study area. The existing relationship between ICTs usage and the SMEs’ growth found to be very high to the extent that majority of respondents agreed on the greater contribution of ICTs to the growth of their businesses. However, there are some barriers hindering the effective use of ICTs as a growth tool to many enterprises. Among the most mentioned barriers are financial constraints, lack of awareness of the most modern devices and application, lack of knowledge on how to use some of the ICT technologies, ICTs operational costs and poor network services from service providers. viii These findings are very alarming to activists specialized in the SMEs development since the SMEs in the study area found to be lagged behind in the use of modern technologies and therefore, both public and private support is required to take corrective measures in order to help SMEs acquire maximum benefits from integrating ICTs in their businesses.
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    The impact of credit institutions on the development of small and medium enterprises Tanga city: The case of NMB bank (MADARAKA branch.)
    (Mzumbe university, 2014) Banda, Victor M.
    Development of a vibrant economy depends on how entrepreneurial the people are, and though some believe that entrepreneurs are born but the fact is that entrepreneurs are made. A strategic thinking is how to consistently develop the capacity of making entrepreneurs. Business development is about seeing opportunities and developing the best ways of tapping those opportunities to ones advantage. Tanzania is blessed to have quite a number of natural resources that are worthless until when they are exploited and transformed into other consumable products to be marketable. The Government supports initiatives to develop capacities to effect the transformation. The aim of this study was to determine the impact of credit institutions on the development of small and medium enterprises in Tanga city. To accommodate the sampling procedure, this study used stratified probability sampling techniques. The reasons for this selection is that with probability sampling each population element has equal chance of occurrence(Kothari,1990) The sample of this study was only Tanga city where all data concerned to this were gathered. The sample size constituted 35 respondents. The government has to put in place good operational environment for SME development and growth. It fully supports strategies, programmers and projects aimed at contributing to the development of SMEs. It is my sincere belief that active participation of all stakeholders in this noble development course will increase the pace of business creation, chances of survival and success, create jobs, increase income and contribute to the improvement of general people’s well being. And emphasizing to all small and medium entrepreneurs to go school which will help them in their business management increasing sales.
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    Contribution of micro-finance institutions to the growth of small and medium enterprises in municipalities: A case of Bukoba municipal council
    (Mzumbe University, 2013) Kige, Marco
    Small and medium sized enterprises in both developing and developed countries play important roles in the process of industrialization and economic growth. A crucial element in the development of the SME sector is access to finance, particularly to bank financing. Microfinance Institutions emerged to serve the financial needs of un-served or underserved group of people in the community such as SMEs.Though there are many studies which have tried to link MFIs and SMEs,yet there are no enough studies showing MFIs‟ role to support SMEs and extend it to living standard of those who run the SMEs The objective of the study was to evaluate the contribution of Micro-finance Institutions to the growth of small and medium enterprises in Bukoba Municipality. Specifically the study aimed at examining the extent to which SMEs develop measures for the growth in Bukoba Municipality, finding out the extent to which Microfinance Institutions improve business growth and living standard of SMEs owners, analysing on how utilization of the financial services provided by Microfinance Institutions support the improvement of household‟s income. The study evaluated the contribution of Micro-finance Institutions to the growth of small and medium enterprises. The findings have covered respondents profile such as age, education level and experience of small business owners and operators. The findings showed that many of these SMEs at Bukoba developed important measures for growth such as business registration, possession of substantial experience in business. However, the study revealed that these SMEs have big weaknesses in other measures such as the size of loans taken being small, lack of entrepreneurship skills, and the fact that many SMEs do not attend SMEs‟ forums. The findings revealed that there is lack of technical support to SMEs from MFIs, and at the same time SMEs are viewed as organisations which have low credibility by MFIs. The study revealed that it is not easy for SMEs to obtain loans from MFIs, some of the obstacles being high interest rate and collateral security. The current study has further identified the contribution of MFIs to the growth of SMEs in Bukoba municipality is not as expected, the support is a little bit impressive and still a lot have to be done to address problems and constraints such as lack of technical support from MFIs and limited access to loans. The study ended up with important recommendations to various stakeholders.
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    The contribution of mobile banking on business growth, perceptions of sme customers of NMB Bank: A case of Kenyatta road branch, Mwanza Tanzania
    (Mzumbe University, 2015) Lugangira, David
    This study identified the customers’ perceptions on the contribution of mobile banking on business growth. The study used different research objectives as to find out SMEs perceptions on facilitation conditions of NMB Mobile banking services, to find out SMEs perceptions on challenges facing NMB Mobile banking and to analyze SMEs perceptions on the contribution of NMB Mobile banking on business growth. In this study, a researcher collected data from 125 SMEs and 50 NMB Employees from department of commercial, Customer Services. IT and back office; making total sample size equals to 175 respondents, using questionnaires and document analysis techniques. The data was analyzed using percentages and frequency distribution and content analysis. The study findings conclude that, Mobile Banking is an important component of financial development, including opportunities for banking to population in rural areas. Indeed, evidence from this study has shown that more than half population perceived NMB Mobile banking to have improved business growth, increased sales, increased profitability, increased customer base, lower transaction costs and lower income inequality. In addition to facilitating business growth, Mobile banking helped individuals smooth their income, transfer funds, and broaden investment opportunities. Testimonies have been evidenced in promoting individuals fund transfer, reduced long queue in banking hall, saved individual time and money, facilitated trade and commerce and improved individual accessibility to different banking product and services. Despite this positive contribution, Contribution of NMB Mobile banking on business growth is hindered by low population that own mobile phones, inadequate awareness on facilitating conditions of NMB mobile banking, high transaction costs of mobile banking, inadequate education on how to use NMB Mobile banking.
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    The impacts of microfinance institutions on micro and small enterprises growth in Tanzania:The case of Mbeya municipality
    (Mzumbe university, 2014) Ambilikile, Omar
    This study attempts to examine the impacts of microfinance institutions on micro and small enterprises growth in Tanzania. Therefore, the study contends to examine the impacts of microfinance institutions on micro and small enterprises growth in Tanzania that will reflect the gap of knowledge on the influence of MFIs on MSEs growth. The study was guided by the objectives; to determine the extent to which MFIs services has an influence on MSEs capital growth, to determine whether the MFIs services have an influence on MSEs asset growth, to find out the extents to which MFIs services has an influence to MSEs employment growth among MSEs in Mbeya municipality. The study was expected to establish the practical relationship between microfinance institutions credits services and how influences MSEs growth. A case study design was adopted, simple random sampling employed for selecting 100 MSEs to be studied who are the beneficiaries of PRIDE services. Data was collected via a self admistered questionnaire whose validity and reliability were established. Quantitative and qualitative data analysis was undertaken to generate both descriptive and correlations. Presentation of data was done in tables and interpretation made based on research objectives. The results of Pearson correlation revealed that positive and significant relationship has been established between MFIs financing to capital size, assets, and employment growth. To a large extent MFIs operation in Tanzania has brought about positive changes in the business growth. The study recommends MFIs to expand their corporate social responsibilities to small scale enterprises; possibility to slow down the loan conditions and procedure of loan application. To enhance the out-reach of microfinance through creating awareness of the activities and operations to MSEs especially those in rural and semi-urban areas. Management of microfinance institutions should incorporate SME’s views or inputs into the formulation or review of their credit management policies. MSEs operators to set clear growth goal and pursue them continuously, thus making sure that the financial resources acquired from MFIs are efficiently utilized to enhanced capital, assets and employment growth.
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    The impact of microfinance credit on the performance of SME's in Tanzania: A case study of National Microfinance Bank-Morogoro
    (Mzumbe university, 2013) Madole, Hamisi
    This study was aimed to examine the impact of microfinance credit on the performance of SMEs in Tanzania specifically in Morogoro Municipal. The research design employed was a case study. Data were collected from 100 respondents. Simple random and purposive sampling techniques were used to arrive 80 customers as well as 20 Bank staff respectively. Moreover, data were collected using interviews, questionnaires, observation and documentary review. Data were analysed using descriptive statistics (frequencies and percentages) using computer package called Statistical Package of Social Science (SPSS) 16 version. Results shows that credit obtained from NMB Bank in Morogoro, SMEs have been able to improve businesses in term of: increased business profit, increased employees, increased sales turnover, increased business diversification, increased business capital and assets as well as reduction of poverty among customers surveyed. Result also shows that collateral, age or experience of the SMEs owners, and, size of the firm influences the access of credit. The study concluded most of the small businesses depend on bank loan for business capital growth. Bank loan especially NMB loan plays a very crucial role to promote small business growth. Although some of the small businesses fail to repay bank loan due to various reasons such as grace period, moral hazard and high interest rate. In regard to the findings, however, it was recommended that MFIs should increase credit and enhances participation in SMEs financing, in order to sustain the growth and maximal contribution to economic growth and development of the nation. Government and MFIs should enhance the out-reach of microfinance through creating awareness of the activities and operations to SMEs especially those in rural and semi-urban areas that are yet to appreciate the benefits of the scheme.
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    Factors influencing micro loans default among micro & small enterprises: A case study of selected SMES in side Manyara.
    (Mzumbe university, 2019) Faraji, Abdulkarim.
    This research on factors influencing loan defaulting among SMEs was carried in SIDO Manyara. Purposely, the study aimed to assess the default of SIDO for the period between 2016 and 2018; determine factors leading the possibility of loan defaults and assess the level of loan default among the selected SMEs in Manyara Region and to borrowers and MFIs. The study also examined income, personal and social factors how they influence loan default to SMEs. The research used questionnaire and derivative data to collect information from the study area. Random sampling technique was used to pick 140 respondents. Generally, MFIs and informants of the Organization were chosen. For the case of key informants, a sample of four staff were selected to answer questions design to get key information for this study. Primary data were gathered physically from the respondents by means of designed questionnaires and other information from key informants whereas secondary data were gathered from already published materials of the organization, periodical magazines and various publications from the organization. Data obtained were analysed by multiple regression model so as measure the contribution factors in multiple linear regression in SPSS used to estimate the relationship between the factors influencing the borrowers to default. Data were entered in the SPSS and manipulated to get the desired results for analysis. The result generated from the multiple regression model indicate that business income, personal and social factors were statistical insignificant at (P>0.05). However, age group and gender as controlled variables show the significant level as p = 0.007, p = 0.005. Based on independent variables, majority of respondents identified that personal and social as major factors of loan default. The study also portrays theoretical and practical significance of the study for SMEs, MFIs and other researchers who would like to get various information concerning this topic including references. Furthermore this research recommends micro finance institutions to share with borrowers in going through repayment of loan conditions, serious monitoring of loan funds, financial training need assessment templates and where possible the use of recognized private and court broker debt collectors. The study concludes by giving policy implications of the credit policy by suggesting the areas that need more improvement and others for further studies. .
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    Enhancing income tax collection in SMEs customers perspective: A case of Tanzania Revenue Authority (TRA), Kinondoni
    (Mzumbe university, 2013) Malima, Agness
    This study intended to find how the attitude of tax clients of taxation system can be enhanced. Generally, the study aimed to evaluate factors promoting income tax collection from SMEs. The following were specific objectives: To determine the extent to which income tax voluntarily comply with income tax regulations in Tanzania, to determine the effectiveness of block system administrative approach in influencing SMEs Compliance, and identify factors mostly influencing the perception of SMEs on voluntary tax returns. The literature of the study lead to the formulation of the following theories: Clients’ Tax education status does not determines the rate of voluntary compliance by tax payers, the rate of client’s visitation by tax officers does not relate to client’s tax compliance status, Client’s experience on business has no influence to voluntary tax compliance. The study used mixed research methods to test the hypotheses in meeting stated objectives. Data were collected through survey questionnaire, interview and the review of documents. The information was based on TRA Kinondoni tax region. Data were analysed through the use of SPSS Version 20. The results of the study observed the following facts:- 1) the majority of customers were not registered to TRA 2) Both registered and unregisterd clients have low awareness of tax laws. 3) There is a weak block system administration 4) The integrity of TRA staff significantly affects the compliance of clients with income tax return regulations.