Determinants of Tanzanian Youth Entrepreneurs' Financial Inclusion: Empirical Evidence from a Baseline Survey in Selected Regions in Tanzania

Financial inclusion is crucial for both developed and developing countries, sparking a worldwide debate on the key factors for success. This study investigates the determinants of financial inclusion among youth entrepreneurs in Tanzania. The study is guided by financial inclusion theory, which emphasizes access, usage and quality of financial services which focuses on enhancing economic outcomes. Understanding these determinants and the factors influencing youths’ decisions to engage with the financial system will aid in developing appropriate policies. This study adopted a cross-sectional design. Due to the unavailability of a comprehensive sampling framework, the study relied on the database of entrepreneurs registered with the Small Industries Development Organization (SIDO). Convenience sampling was used to select youth entrepreneurs aged 15–35 years across five regions in Tanzania. The study aimed to collect data from 2,300 youth entrepreneurs, with 1,949 contacted and 1,906 providing reliable data for analysis. The questionnaire data includes key information such as youth demographic characteristics, firm-specific characteristics, access to financial services, barriers to financial inclusion, and levels of crowdfunding awareness. A logistic regression model was developed to analyze the determinants of financial inclusion among youth entrepreneurs. The results revealed that financial inclusion among youth entrepreneurs is influenced by gender, age, financial knowledge, education level, awareness of financial institutions, and entrepreneurial loan advancement intention. The study further found that low business revenue hinders the decision to open a bank account. Other barriers include unawareness of available services, disinterest, and fear of bank charges. This study recommends the implementation of policies aimed at enhancing financial literacy, increasing awareness of financial services, and developing tailored financial products to address the unique needs of youth entrepreneurs

Motivations and Challenges of Youth Entrepreneurs in Tanzania to Participate in Crowdlending based Financing Platform

This study explores the factors influencing youth entrepreneurs in Tanzania to adopt crowdlending as an alternative source of finance and the challenges they encounter in the process. Using a qualitative case study approach, interviews were conducted with 15 young entrepreneurs who successfully accessed loans through a crowdlending platform. Thematic analysis was conducted through transcription, coding, and theme development processes. The findings indicate that financial necessity and limited access to traditional banking were the primary motivators for adopting crowdlending. However, the study also found that entrepreneurs often have a limited understanding of the crowdfunding process, as many access the platform through intermediaries. Additionally, the study identifies high interest rates and transaction costs imposed by financial intermediaries as major barriers to the perceived benefits of crowdlending. The findings underscore the importance of tailored financial literacy initiatives, user-centred platform design, and policy frameworks to unlock crowdlending’s potential for inclusive youth entrepreneurship in Tanzania.

SMEs’ Performance in Developing Countries: Suitability of Personal Wealth Measures

This study tested the suitability of personal wealth in measuring SMEs’ performance as compared to already known firm growth measures. Guided by the knowledge-based view, the study aimed at determining the influence of learning orientation on SMEs performance under the mediation of competitive advantage using firm growth and personal wealth measures. A structured questionnaire was used to collected data from 300 owners-managers of welding industry SMEs located in Dar es Salaam, Mbeya, and Morogoro urban centres in Tanzania. Measurement and structural models were developed by the aid of SmartPLS 3 software through application of structural equation modelling technique. Determination of indirect influence of learning orientation on SMEs’ performance through competitive advantage was accomplished by bootstrapping the original sample using 5000 samples. Findings inform that competitive advantage mediates the relationship between learning orientation and SMEs’ performance for both firm growth and personal wealth performance measures. This study has contributed to the understanding that learning orientation influences SMEs’ performance under the mediation of competitive advantage using personal wealth as measures of SMEs’ performance. The findings imply that the knowledge-based view is suitable in describing not only physical resources but also intangible resources such as learning orientation. Literature will benefit from future studies that will investigate the influence of other constructs on SMEs’ performance under the mediation of competitive advantage using the same firm growth and personal wealth performance measures. Such studies will ascertain whether the findings of this study are specific to learning orientation construct or applicable to other constructs as well. Keywords: Competitive advantage, firm growth, learning orientation, personal wealth, SMEs’ performance DOI: 10.7176/EJBM/12-24-06 Publication date:August 31st 2020

Entrepreneurship and the growth of SMEs in the furniture industry in Tanzania

Masurel, E. [Promotor]Montfort, C.A.G.M. van [Promotor

Factors Influencing Adoption of Mobile Payment on Revenue Collection in Temeke Tax Region

This study assessed the key factors influencing the adoption of mobile payment systems in revenue collection. In order to fulfill that objective, hypotheses were formulated based on the factors that influence adoption of mobile payment systems in Tanzania Revenue Authority. Those factors were divided into four main categories namely: the technological factors, trust and security factors, social factors and economic factors. This study employed survey design whereby data collected through quantitative research methods through questionnaires. The study was carried out at TRA Temeke tax region. It involved 180 respondents i.e. 170 Mobile users, 04 TRA’s management and 06 TRA agents. The data collected from respondents were analyzed step wise using predictive analysis software (PASW). The results revealed that Non repudiation, Latency, cost, and security statement influences adoption of mobile payment systems. Moreover, hypotheses based on reliability, customer base, monetary convert ability, anonymity, privacy and transaction procedures were insignificant hence rejected. The findings indicated that Technological acceptance model have been partially supported by the study, because, when measured Technological factors two sub variables were significantly supported mobile payment systems adoption. The study recommended that the government and telecommunication companies should take into consideration non repudiation, latency, cost, and security statement to increase adoption. Moreover, future research should study on reliability, customer base, anonymity, privacy and transaction procedures on their influence in adoption of mobile payment systems

Access to finance and smes growth A cross-sectional study of smes in dodoma Municipality

This study was set to assess the access to finance and SMEs growth in Dodoma municipality. Specific objectives were to determine sources of SMEs finances, factors that hinder SMEs to access finance, factors that hinder SMEs growth and the link between SMEs growth and access to finance. The sample size of the study was 120 comprising 30 participants from Uhuru, Majengo, Chamwino and Mwangaza ward. Purposive and random sampling techniques were used to draw the sample. Cross-sectional survey design was used. Since the study adopted both qualitative and quantitative research design, interview and questionnaires were used as data collection tools. Data were analyzed by (SPSS) using regression analysis tool. It was found that 51% the majority of SMEs relied on internal sources of financing, 35% both source of finance and 14% the external source therefore, access to external finance was still a challenge. Also the results of the analysis show that lack of information with (beta=0.189,P=0.048 and t-value=2.001) and administrative side of loan being demanding with (beta=0.248,P=0.049 and t-value=1.991) had statistically significant effect toward access to finance. Insufficient collateral, interest rate too high, banks requesting too much information and loan granting procedures being too long were found insignificant factors. Moreover management skills and keeping of business records with (beta=0.202,t-value=2.034 and P=0.044) was the only factors that significantly related with SMEs growth, other factors such as competitions, finding customers, cost of running and government regulations were regarded as insignificant and lastly SMEs growth was found not statistically significant with access to finance at (P=0.065,beta=0.169 and t-value 1.861) so the hypothesis was rejected. The study concludes that accessibility of external finance is an important factor for the different stages of growth for SMEs. Lack of management skills and poor keeping of business records acted as barriers for their growth. These can be removed if the SMEs have reliable financing sources. Furthermore the study recommends that competition is a challenge to the SMEs does not mean that business environment is not competitiv

A self‑employed taxpayer experimental study on trust, power, and tax compliance in eleven countries

The slippery slope framework explains tax compliance along two main dimensions, trust in authorities and power of authorities, which infuence taxpayers’ compliance attitudes. Through frequentist and Bayesian analyses, we investigated the framework’s assumptions on a sample of 2786 self-employed taxpayers from eleven post-communist and non-post-communist countries doing business in fve economic branches. After using scenarios that experimentally manipulated trust and power, our results confrmed the framework’s assumptions regarding the attitudes of the self-employed taxpayers; trust and power fostered intended tax compliance and diminished tax evasion, trust boosted voluntary tax compliance, whereas power increased enforced tax compliance. Additionally, self-employed taxpayers from post-communist countries reported higher intended tax compliance and lower tax evasion than those from non post-communist countries. Our results ofer tax authorities insights into how trust and power may contribute to obtaining and maintaining high tax compliance levels amid global economic challenges, downturns, and increasing tax compliance costs

Come & follow

Hettinga Student Bookshttps://mosaic.messiah.edu/artistsbooks/1226/thumbnail.jp

Access to bank credit by smallholder farmers in Tanzania: a case study

Tanzania like many other developing countries is highly dependent on agriculture for income generation and job creation for its citizens. Because the sector is mainly composed of smallholder farmers, lack of finance remains the leading obstacle to development. This study seeks to determine factors that affect access to bank credit by smallholder farmers in the Mvomero District of Morogoro, Tanzania. The study used a cross-sectional design, with data being collected via the survey method. Purposeful sampling was used to obtain the respondents who fitted into the study objective. The data were analyzed using descriptive statistics and a logistic regression model. The Logit regression model in particular was employed to determine factors that affect smallholder farmers’ access to bank services. The study reveals that the value of assets invested in farming activities, education and gender are significant factors affecting smallholder farmers’ access to bank credit. Policy recommendations include the establishment of a government bank that would exclusively provide financial services to agriculturalists by establishing a credit guarantee scheme, and the development of new financial products by the banks that would cater to the needs of smallholder farmers.</jats:p