- MOSHI UNIVERSITY COLLEGE OF CO-OPERATIVE AND BUSINESS STUDIES (MUCCoBS), P. O. Box 474, MOSHI, KILIMANJARO, TANZANIA
Isaac Kazungu
Moshi Co-operative University, MARKETING, Faculty Member
The developing economies are experiencing a growing trend of financial Linkage between formal and less-formal financial institutions. Normally, less-formal financial institutions receive loanable funds from formal financial institutions as... more
The developing economies are experiencing a growing trend of financial Linkage between formal and
less-formal
financial institutions. Normally, less-formal financial institutions receive loanable funds
from
formal financial institutions as an approach to meet their financing deficit, while formal financial
institutions
engage in linkage as a mean to expand business. The main concern of stakeholders regarding
this
practice is how such linkage can affect the performance of the less-formal financial institutions. In
Tanzania,
the Savings and Credit Co-operative Societies (SACCOS) are the most used less-formal financial
institutions
which are also highly involved in financial linkage. In this study therefore, we used Tanzania
SACCOS’
financial statement data, for the period of 2004–2011, and panel data regression model to
examine
the relationship between financial linkage (measured as financial dependency ratio) and
sustainability
(measured as Operational Self Sufficiency) of less-formal financial institutions. The findings suggest that the higher the level of financial linkage the more the SACCOS become unsustainable.
Implying that, to be sustainable institutions, the SACCOS should try keep away from the
use of external funds in their loan portfolio.
Keywords: Financial linkage, SACCOS, Sustainability,
Tanzania
less-formal
financial institutions. Normally, less-formal financial institutions receive loanable funds
from
formal financial institutions as an approach to meet their financing deficit, while formal financial
institutions
engage in linkage as a mean to expand business. The main concern of stakeholders regarding
this
practice is how such linkage can affect the performance of the less-formal financial institutions. In
Tanzania,
the Savings and Credit Co-operative Societies (SACCOS) are the most used less-formal financial
institutions
which are also highly involved in financial linkage. In this study therefore, we used Tanzania
SACCOS’
financial statement data, for the period of 2004–2011, and panel data regression model to
examine
the relationship between financial linkage (measured as financial dependency ratio) and
sustainability
(measured as Operational Self Sufficiency) of less-formal financial institutions. The findings suggest that the higher the level of financial linkage the more the SACCOS become unsustainable.
Implying that, to be sustainable institutions, the SACCOS should try keep away from the
use of external funds in their loan portfolio.
Keywords: Financial linkage, SACCOS, Sustainability,
Tanzania
There is continuous and increasing flow of funds from commercial banks and other formal financial institutions to the Savings and Credits Cooperative Societies (SACCoS) in Tanzania. This experience causes contradiction of whether it is... more
There is continuous and increasing flow of funds from commercial banks and other formal financial institutions to
the Savings and Credits Cooperative Societies (SACCoS) in Tanzania. This experience causes contradiction of
whether it is blessing or threat to the SACCoS existence. This paper examines the linkage between sources of funds
and level of outreach as a performance indicator in SACCoS. We employ panel data which are obtained from
Ministry of Agriculture Food and Cooperatives for the period 2005-2012 and analysis is based on panel data
regression model. Findings indicate that both external and internal sources of funds are positive and significantly
related to outreach. However the results indicate that external sources funds are becoming central part of the
SACCoS loan portfolio as compared to internal sources of funds. This is a threat to saving practices in SACCoS. We
recommend that policy and rules governing SACCoS indicate clearly the model and level of linkage to maintain the
principles, structure and objectives of member-based microfinance.
Key words: Tanzania, Microfinance, SACCoS, outreach, external funds and economic development
the Savings and Credits Cooperative Societies (SACCoS) in Tanzania. This experience causes contradiction of
whether it is blessing or threat to the SACCoS existence. This paper examines the linkage between sources of funds
and level of outreach as a performance indicator in SACCoS. We employ panel data which are obtained from
Ministry of Agriculture Food and Cooperatives for the period 2005-2012 and analysis is based on panel data
regression model. Findings indicate that both external and internal sources of funds are positive and significantly
related to outreach. However the results indicate that external sources funds are becoming central part of the
SACCoS loan portfolio as compared to internal sources of funds. This is a threat to saving practices in SACCoS. We
recommend that policy and rules governing SACCoS indicate clearly the model and level of linkage to maintain the
principles, structure and objectives of member-based microfinance.
Key words: Tanzania, Microfinance, SACCoS, outreach, external funds and economic development
This paper centers on examining the role of nursery gardens as small scale agribusiness enterprises in improving livelihoods in Arusha, Tanzania. It documents, challenges, prospects and contributions to the livelihoods of actors in the... more
This paper centers on examining the role of nursery gardens as small scale agribusiness enterprises in improving
livelihoods in Arusha, Tanzania. It documents, challenges, prospects and contributions to the livelihoods of
actors in the industry. Household improvements, access to education, food, health services, regulating weather
and climate are some remarkable contributions. Access to financial services, reliable markets, higher input’s
prices, room for expansion, institutional support and entrepreneurial skills were challenges noted. The study
shows the need for appreciating their existence, increasing productivity and improving the situation which is
context specific though applied in other cities of the same milieu.
Keywords: Micro and Small Agribusiness Enterprises, Livelihoods, Nursery Gardens, Arusha and Tanzania.
livelihoods in Arusha, Tanzania. It documents, challenges, prospects and contributions to the livelihoods of
actors in the industry. Household improvements, access to education, food, health services, regulating weather
and climate are some remarkable contributions. Access to financial services, reliable markets, higher input’s
prices, room for expansion, institutional support and entrepreneurial skills were challenges noted. The study
shows the need for appreciating their existence, increasing productivity and improving the situation which is
context specific though applied in other cities of the same milieu.
Keywords: Micro and Small Agribusiness Enterprises, Livelihoods, Nursery Gardens, Arusha and Tanzania.
Small and Medium Enterprises (SMEs) experience several challenges in their operations including power fluctuation and power rationing which in return lead to low production, poor provision of services and low incomes. Based on that, the... more
Small and Medium Enterprises (SMEs) experience several challenges in their operations including power fluctuation and power rationing which in return lead to low production, poor
provision of services and low incomes. Based on that, the study generally aimed at assessing the impact of power rationing dilemma on the performance of SMEs. The study was undertaken by using a survey research design whereby purposive and random sampling techniques were
used to pick a sample of 28 SMEs while questionnaires, interviews and documentary review were used to collect data. Data were analysed through applying interpretive and reflexive
qualitative approaches while quantitative techniques involved utilisation of descriptive statistics, cross tabulation, correlation and linear regression models. Findings revealed that presence of power rationing results into decline in SMEs productivity as was hypothesised which in return led to poor performance due to inability to provide the required customer service level. Also, that a decline in productivity and loss of income are positively correlated because without products to sell SMEs are not getting business income. Therefore, it is concluded that power rationing has an impact on the performance of SMEs as it affects productivity, incomes and profits.
Licensed under Creative Common
Hence, it is recommended that SMEs should consider using alternative sources of power such
as solar power, biogas, and where necessary share funds to buy power backup generators.
Keywords: Power Rationing, SMEs Performance, Productivity and Business Income
provision of services and low incomes. Based on that, the study generally aimed at assessing the impact of power rationing dilemma on the performance of SMEs. The study was undertaken by using a survey research design whereby purposive and random sampling techniques were
used to pick a sample of 28 SMEs while questionnaires, interviews and documentary review were used to collect data. Data were analysed through applying interpretive and reflexive
qualitative approaches while quantitative techniques involved utilisation of descriptive statistics, cross tabulation, correlation and linear regression models. Findings revealed that presence of power rationing results into decline in SMEs productivity as was hypothesised which in return led to poor performance due to inability to provide the required customer service level. Also, that a decline in productivity and loss of income are positively correlated because without products to sell SMEs are not getting business income. Therefore, it is concluded that power rationing has an impact on the performance of SMEs as it affects productivity, incomes and profits.
Licensed under Creative Common
Hence, it is recommended that SMEs should consider using alternative sources of power such
as solar power, biogas, and where necessary share funds to buy power backup generators.
Keywords: Power Rationing, SMEs Performance, Productivity and Business Income
This study advocates how SMEs in Tanzania can be empowered to effectively make use of the available public procurement opportunities. Specifically it determines the participation of SMEs in public procurement opportunities, stumble on the... more
This study advocates how SMEs in Tanzania can be empowered to effectively make use of the
available public procurement opportunities. Specifically it determines the participation of SMEs
in public procurement opportunities, stumble on the benefits of public procurement opportunities
to SMEs, and examine the challenges facing SMEs’ access to such opportunities. The study
adopted case study design where 50 SMEs operating in Mwanza Municipal were surveyed
using a structured questionnaire with 5-point Likert scale. It divulge that SMEs participating in
public opportunities benefit in terms of amplifying their production capacity and marketing of
goods and services, cash flows , innovation and creativity thus boost their contribution to the
national economy. It also makes out that institutional support, limited access to finance,
unsupportive legal framework, bureaucratic nature of the procurement cycle and corruption
among public officials are challenges facing SMEs participation in public procurement. It
recommends a review of policies related to SMEs ties with public sector, training on public
procurement procedures, fair provision of public procurement opportunities, elimination of
cumbersome, bureaucratic and costly procedures attached to public procurement along with
emphasis on effective use of public private partnerships.
Keywords: SMEs, Public Procurement, Empowerment, Procurement Policy, Tanzania
available public procurement opportunities. Specifically it determines the participation of SMEs
in public procurement opportunities, stumble on the benefits of public procurement opportunities
to SMEs, and examine the challenges facing SMEs’ access to such opportunities. The study
adopted case study design where 50 SMEs operating in Mwanza Municipal were surveyed
using a structured questionnaire with 5-point Likert scale. It divulge that SMEs participating in
public opportunities benefit in terms of amplifying their production capacity and marketing of
goods and services, cash flows , innovation and creativity thus boost their contribution to the
national economy. It also makes out that institutional support, limited access to finance,
unsupportive legal framework, bureaucratic nature of the procurement cycle and corruption
among public officials are challenges facing SMEs participation in public procurement. It
recommends a review of policies related to SMEs ties with public sector, training on public
procurement procedures, fair provision of public procurement opportunities, elimination of
cumbersome, bureaucratic and costly procedures attached to public procurement along with
emphasis on effective use of public private partnerships.
Keywords: SMEs, Public Procurement, Empowerment, Procurement Policy, Tanzania
Research Interests:
Effective strategic planning and its implementation enhance Small and Medium Enterprises’ (SMEs) performance which in the long run has a significant impact on their survival. Hence, the plans become handy as they influence... more
Effective strategic planning and its implementation enhance Small and Medium Enterprises’ (SMEs)
performance which in the long run has a significant impact on their survival. Hence, the plans become handy as they influence better decisions, accountability, organization focus, proper resources allocation and utilisation, good returns, market recognition, growth and success of entrepreneurial ventures. The overall objective of this study was to evaluate the effectiveness of strategic planning in the performance of SMEs. Specifically it looks at factors which influence SMEs to adopt strategic planning; contributions of the strategic planning in SMEs performance; and examine factors influencing effectiveness of strategic planning. 50 different categories of SMEs in Ilala Municipality were surveyed and data were collected using questionnaires, interviews and focused group discussions. Data were analysed by using descriptive statistics aided by Statistical Package for Social Science (SPSS) version 20 and thematic approach analysis. Findings revealed that organizational complexities, environment dynamics and external constraints are among the factors towards strategic planning adoption. Most of entrepreneurs seem not to be familiar with the process as they could not differentiate it from a business plan. Strategic planning is considered to be effective only if it is well formulated and properly implemented to attain the desired goals regardless of the challenges in the process and this can happen when; resources are adequate, management supports team work and also the plans are flexible. It is regarded as a factor for success through its contribution in better decisions and solutions, satisfaction to the customers, competitive advantage and market recognition which they all facilitate the chances of success and improve performance. It is concluded that there is a positive relationship between effective strategic planning and performance improvement, hence, the study recommends a need for providing training to entrepreneurs concerning proper formulation and implementation of strategic plans; also it is important to improve legal framework and development of internal experts for SMEs to ensure that they adopt and become able to continuously apply effective strategic planning.
Key words: Strategic Planning, Performance of SMEs, Ilala and Tanzania
performance which in the long run has a significant impact on their survival. Hence, the plans become handy as they influence better decisions, accountability, organization focus, proper resources allocation and utilisation, good returns, market recognition, growth and success of entrepreneurial ventures. The overall objective of this study was to evaluate the effectiveness of strategic planning in the performance of SMEs. Specifically it looks at factors which influence SMEs to adopt strategic planning; contributions of the strategic planning in SMEs performance; and examine factors influencing effectiveness of strategic planning. 50 different categories of SMEs in Ilala Municipality were surveyed and data were collected using questionnaires, interviews and focused group discussions. Data were analysed by using descriptive statistics aided by Statistical Package for Social Science (SPSS) version 20 and thematic approach analysis. Findings revealed that organizational complexities, environment dynamics and external constraints are among the factors towards strategic planning adoption. Most of entrepreneurs seem not to be familiar with the process as they could not differentiate it from a business plan. Strategic planning is considered to be effective only if it is well formulated and properly implemented to attain the desired goals regardless of the challenges in the process and this can happen when; resources are adequate, management supports team work and also the plans are flexible. It is regarded as a factor for success through its contribution in better decisions and solutions, satisfaction to the customers, competitive advantage and market recognition which they all facilitate the chances of success and improve performance. It is concluded that there is a positive relationship between effective strategic planning and performance improvement, hence, the study recommends a need for providing training to entrepreneurs concerning proper formulation and implementation of strategic plans; also it is important to improve legal framework and development of internal experts for SMEs to ensure that they adopt and become able to continuously apply effective strategic planning.
Key words: Strategic Planning, Performance of SMEs, Ilala and Tanzania