...THE CHALLENGES OF GLOBALIZATION FOR SMES IN TANZANIA Prepared by Tanzania Chamber of Commerce Industry and Agriculture 1 1. Introduction: Definitions Globalization: Every one of 2,822 academic papers written on globalization and 589 new books published on the subject in 1998 had different definitions of globalization. An economic phenomenon, involving the increasing interaction, or integration, of national economic systems through the growth in international trade, investment and capital flows. It also includes a rapid increase in cross-border social, cultural and technological exchange as part of the phenomenon of globalization. 2 Definitions: Small and Medium Enterprises (SMEs): There is no consensus of SME definition as various countries had different definition depending on the phase of economic development and their prevailing social conditions. In this, various indexes are used by member economies to define the term such as number of employees, invested capital, total amount of assets, sales volume (turnover) and production capability. 3 2. SMEs in Tanzania In the context of Tanzania, micro enterprises are those engaging up to 4 people, in most cases family members or employing capital amounting up to Tshs.5.0 million. The majority of micro enterprises fall under the informal sector. Small enterprises are mostly formalized undertakings engaging between 5 and 49 employees or with capital investment from Tshs.5 million to Tshs.200 million...
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...SMEs and the Networks Governance Structure in Tanzania: Literature Review and Research Issues Lettice Rutashobya Issack Allan Faculty of Commerce and Management, University of Dar es salaam P.O Box. 35046 Dar es salaam, Tanzania Tel: 255 741 323661, 255 22 2410221 Fax: 255 22 2410510 Email: Lettice@fcm.udsm.ac.tz Jan-Erik Jaensson Umea University school of Business Administration and Economics, Sweden Jan-Erik.Jaensson@fek.umu.se Abstract This paper reviews the networks and the IMP literature to inform research on the network phenomenon in small and medium enterprises in Tanzania. It is noted that while a lot of work in this area has been done in Western Industrialized countries, little by way of serious research has been undertaken in Sub-Saharan African (SSA) countries. The role of networks in enterprise development and growth in these countries remains unexplored and therefore unclear. It is argued here that research on networks needs to be contextualized if it is to gain currency. Integrating the networks and the IMP perspectives this paper identifies three crucial areas relevant for future research in Tanzania: viz, the network-performance nexus, female versus male networks and social networks. Introduction The main purpose of this paper is to provoke research on networks in Small and Medium Enterprises (SME) in Tanzania. We integrate the networks, IMP and entrepreneurship literature to justify research in this area. In the entrepreneurship literature networks have been...
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...ICT IN ADMINISTRATION 1 ICT IN ADMINISTRATION ICT IN ADMINISTRATION AND IMPLICATIONS ANTHONY K MUKUCHE D61/69173/2013 UNIVERSITY OF NAIROBI ICT IN ADMINISTRATION 2 LITERATURE REVIEW Introduction The study reviews relevant literature in the area of ICT in government administration. It will discuss the concept of ICT, in the day to day running of activities in government departments and the advantages of using it. RESEARCH METHODOLOGY Introduction This chapter describes the methods that will be used in the collection of data pertinent in answering the research questions. It is divided into research design, population and sampling design, data collection methods and data analysis methods. Target Population and sample Size The target population will be all the employees of government. Employees in government are quite a number to get feedback from. The sample size will be 50 – 100 employees of government. Data Collection Primary data will be gathered directly from respondents and for this study; the researcher used a questionnaire. The questionnaire will consisting of close and open-ended questions. The questionnaire consisted of two sections. Data Processing and Analysis Data analysis is the whole process, which starts immediately after data collection and ends at the point of interpretation and processing data. The researcher will peruse the completed research instruments and document analysis-recording sheets. ICT IN ADMINISTRATION 3 ...
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...©2011 Academic Journals Full Length Research Paper Challenges and opportunities of Tanzanian SMEs in adapting supply chain management Sama Hamisi Procurement and Supplies Department, College of Business Education, Dodoma Campus, Dodoma, P. O. Box 2077, Tanzania. E-mail: samakicheche@yahoo.com. Tel: +255 755 292 850. Fax: +255 026 232 2121. Accepted 19 November, 2010 Around the globe, Small and Medium Enterprises (SMEs) have acquired a significant and pivotal position in the entire economic development process. Over the years, this sector had played a critical role in developing Tanzanian economy through creation of employment opportunities, income generation, equitable distribution of income whence contributing towards poverty alleviation. However, this sector suffers a number of challenges in domestic and global market competition, though, varieties of opportunities in adapting supply chain management exists. In today’s context of fast changing and dynamic economy and dominance of global supply chain systems, the SMEs in Tanzania, besides facing traditional hardships in finance, they misalliance the phenomenon of supply chain management thus fails to find proper place in the domestic and global supply chain leaving TNCs and MNCs to have a greater dominance. As Tanzania’s economic policy is about-turn from socialism and self-reliance towards capitalism, SMEs are strangled in a ‘wait and see’ position as global supply chain bandwagon continue to wheel with...
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...FACES OF INDEBTNESS 1) KENYA Kenyan borrowers promptly repay their loans despite the stiff interest rates and high inflation, presenting a lower default risk investment environment for banks compared to other parts of the world. The low default risk for banks has however not translated to lower interest rates for customers despite the credit referencing system taking effect. The credit risk is measured in terms of gross non-performing advances as a percentage of the total gross advances. A survey by audit firm RSM Ashvir, based on banks 2012 financial reports showed only 4.6 per cent of loans by banks in 2011 ended up as non-performing advances. The banking industry disbursed Sh1, 335 billion, out of which only Sh61.4 million was defaulted. The risk has consistently decreased from 7.9 per cent in 2009 to 6.3 per cent in 2010. With the increase in interest rates and inflation rate, non-performing advances were expected to go higher, but it is not the case. This shows that the risk in the Kenyan market is low Interest rates spiked in December 2011 after the Central bank increased its key lending rate to a high of 18 per cent to curb the inflation rate which had peaked at 19.72 per cent in November that year. Though both the Central Bank Rate and inflation rate have dropped to 9.5 per cent and 4.11 per cent, banks are still lending at an average of 17.84 per cent. Microfinance institutions in Kenya have suffered significant loan repayment default resulting into subsequently...
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...MZUMBE UNIVERSITY SCHOOL OF BUSINESS PROGRAM: SUBJECT: SUBJECT CODE: NATURE OF WORK: DATE: SCHOLAR: MBA/CM – MASTER OF BUSINESS ADMINISTRATION/CORPORATE MANAGEMENT OPERATION MANAGEMENT POM 5011 TERM PAPER 05TH DECEMBER, 2012 LOISILIGAKI GABRIEL LOIBANGUTI REGISTRATION NUMBER: MBA/CM/MZC/043/T.12 QUESTION: “An Examination on the Strategic use of Information Technology in Tanzania Service Industries in Achieving and Sustaining Competitive Advantage and Suggestions for improving their effectiveness” You are required to search the relevant research materials on the topic in hand and compose a report. Your report should critically discuss the issues of technological adoption on the use of IT practices by the consumers and business enterprises; In addition, your report should explore areas of strategic applications of IT by business enterprises, the challenges involved and suggestions for their improvements. Support your report with reference to case studies and /or examples of companies. i TABLE OF CONTENTS ABSTRACT ...................................................................................................................................... iii 1.0 INTRODUCTION ........................................................................................................................1 2.0 LITERATURE REVIEW ..............................................................................................................2 3.0 IT adoption concept on entreprise...
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...Microfinance Bank NMFP - National Microfinance policy PFSs - Private Financial Sectors PRIDE - Promotion of Rural Initiatives and Development Enterprise SACCOS - Saving and Credit Cooperative Society SPSS - Statistical Package for Social Science URT - United Republic of Tanzania ABSTRACT The Ojective of the research was to assess the eeffectiveness/contribution of PFSs in reduction of poverty in Kinondoni District Dar es Salaam Tanzania. The research was conducted at NBC branches. The Branches to which the Reseacrh was conducted were Kinondoni Branch, Ubungo Branch, Mlimani City Branch, UDSM Branch and Tegeta Branche. Data were collected through interview and research questionnaires and were analyzed by using quantitative approach. The research study revealed that Tanzania there is a number of Private Financial Institutions providing financial services among Tanzanians. These Financial institutions are categorized either being in the form of banks i.e NMB, NBC, Akiba Commercial Bank and Women Bank of Tanzania or non Banks Financial institutions like PRIDE, FINCA and Tujijenge. All these financial institutions provide loans to need of Tanzanians. However, the...
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...identified the need for the development of Small and Medium Scale Enterprises (SME). One of such sectoral strategies is the introduction and pursuit of policies such as concessionary financing to encourage and strengthen the growth of SMEs in Nigeria. In this paper, a random sample of 10 formal/ informal finance sources and 20 SMEs in 6 selected Small and Medium industries in Kaduna and Abuja have been studied. We found that financing options for SMEs are numerous but access to these funds has been difficult inspite of several government initiatives. We also found that the Small and Medium Industries Equity Investments Scheme (SMIEIS) fund lacks standard guideline for fund disbursement, the unregulated informal finance institutions finance the SMEs much more than the formal sources and the informal sources make up more than half of the SMEs’ mix of funds. It is recommended that the informal source of financing is a potentially important source of micro financing. Savings in them should be further encouraged through regulation, government intervention by way of active participation of community and development banks in local business associations. SMEs should consider all financing options that maximize the value of the business enterprise. 1.1 INTRODUCTION The significant role Small and Medium Scale Enterprises (SMEs) play in economic development process has been well documented. Studies have been conducted on SME management, business planning and to some extent on venture creation...
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...millennium brought with its, new possibilities in terms of information access and availability simultaneously, introducing new challenges in protecting sensitive information from some eyes while making it available to others. Today’s business environment is extremely dynamic and experience rapid changes as a result of technological improvement, increased awareness and demands Banks to serve their customers electronically. Tanzania Banks have traditionally been in the forefront of harnessing technology to improve their products and services. The Banking industry of the 21st century operates in a complex and competitive environment characterized by these changing conditions and highly unpredictable economic climate. Information and Communication Technology (ICT) is at the centre of this global change curve of Electronic Banking System in Tanzania today. (Stevens 2002). Assert that they have over the time, been using electronic and telecommunication networks for delivering a wide range of value added products and services, managers in Banking industry in Tanzania cannot ignore Information Systems because they play a critical impact in current Banking system, they point out that the entire cash flow of most fortune Banks are linked to Information System. The application of information and communication technology concepts, techniques, policies and implementation strategies to banking services has become a subject of fundamental importance and concerns to all Banks and indeed a prerequisite...
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...Inventory Management is a necessary Evil General Area: Supply Chain Management (SCM) Problem Area: Inventory Management a necessary Evil Ravi Kumar PGP/17/108 Email: ravik17@iimk.ac.in Indian Institute of Management, Kozhikode Abstract This article tries to explore how inventory management is one of the integral part of various business units in today’s business world. There are many modeling techniques available in Inventory management evolving very rapidly over a period of time, which can be used for performing different functions of meeting the customer satisfaction and helping the firms to achieve highly efficient SCM and in turn increase their profit margin. Not just that Inventory management systems have capability of meeting the uncertainty of demand by providing planned and effective way countering these uncertainties. This articles also discuss the critical point of inventory being a necessary evil i.e. with inventory firms have to bear certain cost but without it they can’t beat the demand uncertainties. The current models available however have discussed various issues related with the inventory management in real world but models are evolving to get rid of obsolescence and be competitive. There is lot of potential locked up in these models which can change the way managements make decisions in today’s world. Thus there is scope for applying systems thinking methodology this area and bring out synergies in different applications of Inventory management...
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...CIRES Ivorian Centre for Social and Economic Research CM Common Market COMESA Common Market for Eastern and Southern Africa COBET Complementary Basic Education in Tanzania CODESRIA Council for the Development of Social Science Research in Africa COMESA Common Market for Eastern and Southern Africa CPI Consumer Price Index CRE Christian Religious Education CSAE Centre for the Study of African Economies, University of Oxford CSO Civil Society Organization CU Customs Union EA East Africa EACSCO East African Common Services Organization EABC East African Business Council EAC East African Community EADB East African Development Bank EAHC East African High Commission EARISC East Africa Regional Integration and Scientific Cooperation ECCAS Economic Community of Central African States ECDE Early Childhood Development Education ECOWAS Economic Community of West African States EPA Economic Partnership Agreement EAPF East African Political Federation EPZ Export Processing Zone EU European Union FCCs Fears, Concerns & Challenges FDI Foreign Direct Investment FTA Free Trade Area GER Gross Enrolment Rate GCR Gross Completion Rate GDP Gross Domestic Product GOK Government of Kenya GOR Government of Rwanda GOT Government of Tanzania GOU Government of Uganda GRP Gross Regional Product HELB Higher Education Loans...
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...the 1960s to date, small and medium sized enterprises (SMEs) have been given due recognitions especially in the developed nations for playing very important roles towards fostering accelerated economic growth, development and stability within several economies (Yitzhaki, 2006). They make-up the largest proportion of businesses all over the world and play tremendous roles in employment generation, provision of goods and services, creating a better standard of living, as well as immensely contributing to the gross domestic products (GDPs) of many countries (OECD, 2000).Over the last few decades, the contributions of the SMEs sector, the development of the largest economies in the world have beamed the searchlight on the uniqueness of the SMEs; and this have succeeded in overruling previously held views that SMEs were only ―miniature versions‖ of larger companies (Al-Shaikh 1998; Gaskill et al. 1993). And although Small and Medium Enterprises have been at the center of the policy debate for quite some time in both developed and developing countries, little analytical work has been undertaken in this area.The dearth information that exists among researchers on Small and Medium Enterprises however provides a sense of how important this sector is for sustainable development in emerging economies (Medina, 2001). For instance, recent studies conducted by United Nations Industrial Development Organization (UNIDO) concur that SMEs are: laborintensive, providing more opportunities for low-skilled...
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...E-ISSN 2281-4612 ISSN 2281-3993 Academic Journal of Interdisciplinary Studies Published by MCSER-CEMAS-Sapienza University of Rome Vol 2 No 5 July 2013 Challenges and Prospects of Entrepreneurship in Nigeria Okezie A. Ihugba Alex Odii Asoluka C. Njoku Department of Economics, Alvan Ikoku Federal College of Education, Owerri-Imo State, Nigeria Doi:10.5901/ajis.2012.v2n5p25 Abtsract The success of generating income for majority of rural and urban dwellers with no formal paid employment highly depends on Entrepreneurship. They are the backbone of economic development all over the world and play important role for employment, income and societal changes, particularly in transition economies like Nigeria. This paper is concerned with the nature and the extent to which entrepreneurship in Nigeria has been developed so far, and outlines the initiative by government and also the main current and future challenges and perspectives for the development of entrepreneurship. The study revealed that such initiatives by government failed abysmally due to over bearing bureaucracies, corruption, inadequate and inefficient infrastructural facilities and maladministration. The paper concludes that entrepreneurship miracle in other country is an engine for job creation; innovation and diversity and Nigeria’s entrepreneurs have a long way to go before they can effectively drive changes in the economy and recommends that Government (policy makers) should genuine recognize the essence of entrepreneurship...
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...Introduction Sir Fazle Hasan Abed is a social worker and the founder and chairman of BRAC, the largest NGO in the world. Fazle Hasan Abed was born in 1936 into a landed family in Baniachong in Bangladesh’s Habiganj district. Fazle Abed's father and his three uncles were adopted by Syed Shamsul Huda, who was one of the most influential personalities in Calcutta. Under Syed Shamsul Huda's direction, Fazle Abed's father Syed Mustafa Ali and his three uncles received education from the prestigious St. Xavier's College, Calcutta. However Fazle Abed's family moved out of Calcutta and he matriculated from Pabna Zilla School and went on to complete his higher secondary education from Dhaka College. Then He left home to attend Glasgow University, where, and in an effort to break away from tradition and do something radically different - he studied Naval Architecture. Later he joined the Chartered Institute of Management Accountants in London. The 1971 Liberation War of Bangladesh had a profound effect on him, then in his thirties, a professional accountant who was holding a senior corporate executive position at Shell Oil. The war dramatically changed the direction of his life; he left his job and moved to London to devote himself to Bangladesh's War of Independence. There, he helped to initiate a campaign called "Help Bangladesh" to organize funds to raise awareness about the war in Bangladesh. Fazle Hasan Abed, the founder and chairperson of the world's largest NGO, he is...
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...MICROFINANCE INSTITUTIONS AND ECONOMIC GROWTH OF SMALL & MICRO-ENTERPRISES (SMES) ACASE STUDY OF (UWMFO) MICRO FINANCE INSTITUTION BY HENRY EGYEYU DEDICATION To the memory of my grand father Daniel Egeyu Whose love & enthusiasm for academia first kindled mine? ABSTRACT This research study investigates the impact of microfinance institutions on entrepreneurial development of Small & Micro-enterprises (SMEs) that are craving for growth and development in a war revived district called Gulu. The researcher used questionnaire as an instrument of primary data collection. Tables and simple percentages were used in data presentation. For clear analysis, the study centers on two broad variables; the dependent variable which is entrepreneurial development and the independent variable which is microfinance institutions. Three different hypotheses were formulated and tested using various statistical tools such as chi-square test, analysis of variance and simple regression analysis. The study reveals that (i) there is a significant difference in the number of entrepreneurs who used microfinance institutions and those who do not use them; (ii) there is a significant effect of microfinance institutions activities in predicting entrepreneurial productivity; and (iii) that there is no significant effect of microfinance institutions activities in predicting entrepreneurial development. The researcher concludes...
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