Journal Press India^®

Author Details ( * ) denotes Corresponding author

The significant objective of this study is to explore financial management practices and the growth of MSMEs in Tanzania. This research was guided by the following objectives: financial innovations, investing activities, risk management practices and working capital management. Since the MSMEs population is quite high, the target population for this study was estimated at over 400 management staff from selected MSMEs in Dar es Salaam. The study discovered that financial innovations influence the growth of MSMEs of Tanzania to abundant scope and that the aim of innovation in an enterprise is to make a profit. The study also recommends that it is important for MSMEs to invest so that investments can grow to competition against inflation and future reservations. Managers should increase an effective business support system as a key condition for the success of investment capacity building. The study found that there is a need to look at the challenges facing MSMEs of Tanzania.

Keywords

Financial management practices; Performance; MSMEs; Innovation; Dar es Salaam; Tanzania

1. Abimbola, O., & Kolawole, O. (2017). Effect of working capital management practices on the performance of small and medium enterprises in Oyo state, Nigeria. Asian Journal of Economics, Business and Accounting, 3(4), 1-8.
2. Abosede, S. A., & Luqman, O. S. (2014). A comparative analysis on working capital management of brewery companies in Nigeria. SSRN Electronic Journal, 3(6), 356-371.
3. Alford, J., & Greve, C. (2017). Strategy in the public and private sectors: Similarities, differences and changes. Adm. Sci., 7, 35. Retrieved from https://doi.org/10.3390/admsci7040035.
4. Altamony, H., Tarhini, A., Al-Salti, Z., Gharaibeh, A. H., & Elyas, T. (2016). The relationship between change management strategy and successful enterprise resource planning (ERP) implementations : A theoretical perspective. International Journal of Business Management and Economic Research, 7(4), 690–703.
5. Atow-Zahir, A. A. (2012). The relevance of strategic planning on organisational growth in the public sector : The case study of Ghana shippers’ Authority By Abu Ahmed Atow-Zahir, B. A. Political Science (PG 4153910) A thesis submitted to the institute of distance learning, 1–99.
6. Baum, J. R., & Wally, S. (2003). Strategic decision speed and firm performance. Strategic Management Journal, 24(11), 1107–1129.
7. Ebner, D. (2014). Formal and informal strategic planning: The interdependency between organisation, performance and strategic planning. Retrieved from https://doi.org/10.1007/978-3-658-04502-9.
8. Erambo, G. E., Mulwa, J. M., Aketch, J. R., Sangoro, O., & Muchibi, W. M. (2016). Financial management practices and firm performance among micro and small enterprises in Busia town, Kenya. International Journal of Management and Commerce Innovations, 4(2), 303-310.
9. Farashah, A. D. (2013). The process of impact of entrepreneurship education and training on entrepreneurship perception and intention: Study of the educational system of Iran. Education and Training, 55(8-9), 868-885.
10. Flemming, P. (2014). A review of strategic planning models developed over the past 50 years, and their effectiveness in public sector organisations. Retrieved from https://doi.org/10.13140/2.1.4314.7044.
11. Jackson, K. K. (2018). Effectiveness of accounting ratios in predicting financial distress. IJARKE Business & Management Journal, 1(1), 293-301.
12. Karadag, H. (2015). Financial management challenges in small and medium-sized enterprises: A strategic management approach. EMAJ: Emerging Markets Journal, 5(1), 26-40.
13. Karimi, S., Chizari, M., Biemans, H. J. A., & Mulder, M. (2010). Entrepreneurship education in Iranian higher education: The current state and challenges. European Journal of Scientific Research, 48(1), 35-50.
14. Maehr, M. L. (2008). Culture and achievement motivation. International Journal of Psychology, 43(5), 917-918.
15. Majama, N. S., & Magang, T. I. (2017). Strategic planning in small and medium enterprises (SMEs): A case study of Botswana SMEs. Journal of Management and Strategy, 8(1), 74.
16. Mori, G. T., Kazungu, I., Mchopa, A., & Box, M. P. O. (2014). Strategic planning : A management contrivance for effective performance of small and medium enterprises in Tanzania ? A survey of selected SMEs in Ilala municipality. European Journal of Business and Management, 6(39), 193-204.
17. Neumann, W. P., & Dul, J. (2005). Workshop report: Ergonomics’ contributions to company strategies. Nordic Ergonomics Society (NES) - 37th Annual Conference, Oslo, Norway, 166-170.
18. OECD (2013). OECD investment policy reviews: Tanzania 2013, OECD investment policy reviews. Paris: OECD Publishing. Retrieved from https://doi.org/10.1787/9789264204348-en.
19. Oluoch, J. O. (2016). The impact of cash management practices on performance of SMEs: A survey of SMEs in Eldoret central business district. IOSR Journal of Economics and Finance, 7(6), 1-7.
20. Paterson, A. (2009). A review of strategic planning practices that may be applied by the South african national planning commission. Development Planning Division Working Paper Series No. 6. Retrieved from https://pdfs.semanticscholar.org/6df2/76f5cbc3f7d 09629c32f924ee384c98f8c5e.pdf.
21. Richard, P. J., Devinney, T. M., Yip, G. S., & Johnson, G. (2009). Measuring organisational performance: Towards methodological best practice. Journal of Management, 35(3), 718-804.
22. Salum, V. S., Gakure, R. W., & Othiambo, R. (2017). Impact of stakeholders on implementation of strategic plans in Tanzania’s public sector. Journal of Public Administration and Governance, 7(4), 294.
23. Sandada, M. (2015). Strategic planning dimensions in small and medium enterprises (SMEs) in South Africa: Their relative importance and variations in selected demographic variables. Ecoforum, 4(1), 59–68.
24. Smith, A. (2012). Strategic planning and management in public and private sector organisations in Europe : Comparative analysis and opportunities for Ieva Nartisa. Romans Putans, Tatjana Muravska, (6), 240–248. Retrieved from http://www.eis.ktu.lt/index.php/EIS/article/view/1538.
25. Wanjiku, K. J. (2017). The relationship between financial management practices and financial performance of SME’s in Nairobi central business district Kenya. University of Nairobi. Retrieved from https://doi.org/10.1348/014466506X173070.
26. Wauters, B. (2017). Strategic management in the public sector. Retreived from https://ec.europa.eu/esf/transnationality/filedepot_download/1095/1133.