Assess the factors affecting performance effective of stationeries and computer maintenance business in Mtwara Mikindani municipal.


DECLARATION

I declare that this Research Report is my original work and has not been presented anywhere. No part of this research report should be reproduced without my permit and authority of Stella Maris University College.
Name: KAWONGA GODLUCK
Sign…………………………………….

Date…………………………………….

DECLARATION BY SUPERVISOR
The Research Report has been submitted for examination with my approval University Supervisor at Stella Maris University College.
Name: Mr. NAROCO MUCHUNGUZI
Sign…………………………………… ….
Date………………………………………….

 

DEDICATION

This work is dedicated to my parents: my beloved father Mr. Kawonga  B. Mbepere and my beloved mother Mrs. Mary  G. Mbepera  also to vack group  Family and Mr and Mrs Kawonga , without forgetting my lovely Sisters Elizabeth Ndunguru, and Christopher kapanga, for their encouragement and support morally and financially.












ACKNOWLEDGEMENT

In the first place, I thank the Almighty God, for his blessings and endless love to me throughout my life especially during the accomplishment of this research project. Sincerely I extend my thanks to Mr. MUCHUNGUZ for his instruction, encouragement and cooperation and the guidance on choosing this study.




 

 

 

 



LIST OF ABBREVIATIONS

DED                            District Executive Director
DSEO                        District Secondary Education Officer
NARI                          Naliendele Agricultural Research Institute
STEMMUCO             Stella Maris Mtwara University College










 


The main objective of this study is to assess the factors affecting performance effective of   stationeries and computer maintenance business in Mtwara Mikindani municipal.

ABSTRACT

The study was carried out to assess the factors affecting performance effective of   stationeries and computer maintenance business in Mtwara Mikindani municipal. The study employed both quantitative and qualitative approaches, and a case study design through questionnaires, interviews and documentary review was applied. The data were analyzed in statistics and the results were presented in charts, graphs and tables.
The study revealed the following results based on specific objective; the first specific objective, on the socio factors affecting effective Performance of stationeries and computer maintenance business included, location and pricing, electricity supply skill, lack of entrepreneur skills control system and inventory motivation,
Apart from that, in the case of second objective, the economic affecting effective Performance of stationeries and computer maintenance business Mtwara Mikindani Municipality these include; government regulations/taxes change in technology, scarce of capital, cost of marketing for products, lack of Proper Business Plan
Lastly, also in others factors Affecting Performance effective of   stationeries and computer maintenance business included administrative problem poor infrastructure, corruption through these, The study recommended that the stationeries and computer maintenance business should take efforts or ways to overcome those challenges as follows; Cooperate with the worker and  owner ,Unity among worker, owner and government.


Table of Contents


CHAPTER ONE

GENERAL INTRODUCTION

1.0 Introduction

This chapter represents the background information of the study, statement of the problem, objectives of the study, research questions, and significance of the study, scope of the study and definition of key terms.

1.1 Background of the Study

stationery business is customer driven, so creating, printing, and delivering or shipping customer orders occupies a large part of the workday. Additionally, a stationery business spends time researching and emerging design trends. Computer maintenance is the practice of keeping computers in a good state of repair. A computer containing accumulated dust and debris may not run properly. Business performance management is a set of performance management and analytic processes that enables the management of an organization's performance to achieve one or more pre-selected goals.
According to Storey (2000) the term small business enterprises are predominantly used in the United State of America (USA). There is a close relationship between the economy and small businesses. Small businesses continue to be incubators for innovation and employment growth. According to the U.S. Small Business Administration Office of Advocacy, small businesses make up more than 99.7% of firms with paid employees, account for 62% of net new jobs, produced 46% of the private nonfarm gross national product in 2008, and represent about 95.9% of employer firms in high-patenting manufacturing industries. The environment of businesses were improved and people have skill of  Management which able know how to make decisions and understand the basic management principals, there, he is likely to face managerial challenges in the long run if not failure to progress with business activities (Griffin & Ebert, 2006). Also Planning, it have strategic plans (Strategic plan plots the overall direction of the business and identifies the ways of maximizing its strengths and overcoming its weaknesses) it must be planned carefully (Griffin & Ebert, 2006) Location and Pricing. Location is much too critical to be left to chance. Some beginning owners choose a particular location (Scarborough &Zimmerer, 2008 and vailability of capital. Government regulations like taxation are regularly well intended and they benefits without question. However their costs to small businesses are relatively higher as a result small businesses normally do shift the burden of those costs to customers. (Susman, 2007).
Implementing these processes result in improvements to cash flow, control and optimization of costs, and risk management finally contributed to perform well.
In South Africa Small, Medium and Micro Enterprises (SMMEs), also referred to as small business, play an important role in an economy. They can be key drivers of economic growth, innovation and job creation. In South Africa, government recognizes the importance of this segment of business activity, so much so that a new Ministry of Small Business Development was established in early 2014. The aim of the Ministry is to facilitate the promotion and development of small businesses. These enterprises contribute significantly to national GDP and have proved to be major contributors to job creation (The DTI, 2008). South Africa struggles with an alarmingly high national unemployment rate of 25% (Statistics South Africa, Quarter 2: 2015), which is partly exacerbated by a chronic shortage of skilled labor.
The range in size is very wide the definition for SMMEs encompasses a very broad range of firms, some of which includes formally registered, informal and non-VAT registered organizations (The DTI, 2008). Small businesses range from medium-sized enterprises, such as established traditional family businesses employing over a hundred people, to informal micro-enterprises. The latter includes survivalist self-employed persons from the poorest layers of the population. The upper end of the range is comparable to the small- and medium-sized enterprises (SME) segment found in developed countries. In South Africa, a large majority of SMMEs are concentrated on the very lowest end, where survivalist firms are found (Berry, 2002). These firms can take the form of street trading enterprises, backyard manufacturing and services, and occasional home-based evening jobs. The informal sector comprises almost exclusively of SMMEs; those classified as survival entities have very little growth potential and are less likely to hire staff (The DTI, 2008).
According to (URT, 2002), Small business in Tanzania started as early as in 19 centuries as trade liberalization took place. Small business in Tanzania is practiced in urban and rural areas where it is more common in urban centers (URT, 2012). Tanzania Small and Medium Enterprises 95% of the businesses in Tanzania are small and Medium Enterprises (SMEs) and they represent about 35% of the country’s GDP, according to the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA).
In September 2016, Tanzania officially launched the Tanzania Entrepreneurship and Competitiveness Centre (TECC) to promote entrepreneurial innovation and competitiveness in the country. TECC aims to promote entrepreneurship and competitiveness in small and medium enterprise  in Tanzania through: – Skills development in entrepreneurship, innovation and competitiveness – Promoting local economic development using the triple helix cluster approach in order to reduced challenge such as lack of education, change in technology, motivation, relationship, lack of proper business plan, cost of marketing for products, lack of entrepreneur skills, scarce of capital, high taxes  and political party conflict. Providing business intelligence through studies and advisory services Jenista Mhagama, Minister of State in Tanzania’s Prime Minister’s Office responsible for Policy, Parliamentary Affairs, Labor, Employment, Youth and the Disabled, said that the Government supports the private sector in SMEs promotion and urged companies and institutions to assist TECC (URT 2016) .According to the economic reform programme implemented by the Tanzania government have been based on the philosophy that Tanzania is committed to a market economy where by the private sector will take the lead in creating incomes, employment and growth. Such as the African Development Bank (AfDB) approved a USD120m Line of Credit (LOC) to Tanzania to finance infrastructure and SME projects. The LOC is allocated to CRDB; the largest commercial bank in Tanzania, which supports various sectors such as power, manufacturing, agriculture, the private sector has started playing an ever-increasing role in creating incomes and employment (URT, 2002). According to the 19th annual research workshop (ARW) presented at REPOA by (Venkatakrishnan, 2013. According to (URT,2003), has provided the basic data about the small enterprises, in Tanzania, where it shows that small enterprises, constitute vast number of businesses; there were estimated to be more than 3 million small enterprises, which 45% were located in urban and the remains in rural areas. Small enterprises, account for a large share of the enterprises active in Tanzania (URT, 2002).

Mtwara Mikindani being a part in which stationeries and computer maintenance business have been developed in the recent years particularly in 2010. Business has been developed stationeries and computer maintenance due to increases of services demand from like presences of the many education institutions includes universities, schools, company like STEMMUCO, UTUMISHI and VETA, Bandari secondary school. In Mtwara Mikindani Municipal large numbers of people in the region have been employed because stationeries and computer maintenance make opportunity for in Mtwara Mikindini to engaging and increasing of performance of statuaries and computer maintenances business.

1.2 Statement of the problem

Small and medium business play a big role in economic growth of the country; SMEs create employment opportunities, contribute to the growth domestic product (GDP) of the country and promote international relationships URT (2002). In Tanzania   have many strategies concerned with business especially provision of education in  formal and informal education such as through Tanzania Entrepreneurship and Competitiveness Centre (TECC), VETA, other local government authority which formed groups in order  to provide education. They are providing education of entrepreneurship, review and amendment of licensing legislation to reduce the cost of business establishment and continuation (URT 2012)
Tanzania has established an organization that deals with marketing internal and external such as Tanzania Chamber of Commerce, industry and agriculture and Tanzania investment center. Also, they deals with advices, location, business life cycle, market access, legal and regulatory frameworks, infrastructure, human capital, technology and, education. They provide financial services and soft-loan which associated with others financial institutions.
      They have a  policies which gives chances to get capital for business in different institution  such Tanzania Post Bank, National Microfinance Bank,  National Bank  of Commerce and others banks .these policies make a reviewing and revision of export – import procedures to reduce time costs and corruption related costs; design and implementation of a program for enhancing access to commercial. Institutional arrangements, financing schemes, education and awareness, facilities to seek information and redress, as well as debt resolution programs. Access to finance allows SMEs undertake productive investments and contribute more to economic development and poverty alleviation (Beck, Demirgüç-Kunt, Laeven, &Maksimovic, 2006).
       Also the Government of Tanzania collaboration with the private sectors especially  four development partners namely, SIDO, SIDA, DFID, DANIDA, the African Development Bank (AfDB)and Royal Netherlands Embassy have established the different Programmes .Major objective is to improve the business environment by reviewing the existing legal and regulatory framework.
Through the various strategies or effort which have been done by Tanzania government but still the performance of stationeries and computer maintenance business have still low in country. However the greater demand services high than performance in various aspects such as socially, politically and economically. Thus the researcher decided to conduct the investigating about factors affecting effective performance of stationeries and computer maintenance business in Mtwara Mikindani Municipality



1.3 Objectives of study

1.3.1 General objective

The main objective of this study is to assess the factors affecting performance effective of   stationeries and computer maintenance business in Mtwara Mikindani municipal.

1.3.2 Specific objectives

 (i)   To determine the social factors affecting effective Performance of stationeries and computer maintenance business in Mtwara Mikindani municipal
(ii) To examine the economic factors affecting effective Performance of stationeries and computer maintenance business in Mtwara Mikindani municipal.
(iii) To identify others related factors Affecting Performance effective of   stationeries and computer maintenance business in Mtwara Mikindani municipal.

1.4 Research Questions

 (i)   What are the socio factors affecting effective performance of stationeries and computer maintenance business in Mtwara Mikindani municipal?
 (ii) What are the economic affecting effective performance of stationeries and computer maintenance business in Mtwara Mikindani municipal?
(iii) What are others related factors affecting effective Performance of stationeries and computer maintenance business in Mtwara Mikindani municipal?

1.5 Significance of the Study

The findings helped researchers, policy makers and administrators in all levels to understand factors Affecting Performance effective of   stationeries and computer maintenance business.The usefulness of the study is to provide information to education about factors Affecting Performance effective of   stationeries and computer maintenance business in Mtwara Mikindani municipal.
The study provided information how stationeries and computer maintenance business can work and managed in order to play a significant and effective role in the economic development Mtwara Mikindani municipality.
It brought useful in making major contributions to policy makers on the promotion Small business enterprises strategy. The study will attempt to fill some gaps on the limited research on Women and youth Small business enterprises. The study will analyze carefully the present roles of stationeries and computer maintenance business in the economic development of Mtwara Mikindani municipality and also provide a basis for other studies on stationeries and computer maintenance business enterprises on top of being a contribution to the already existing academic development.
In addition this study, also contributed knowledge to the existing literature about the asses the Factors Affecting Performance effective of stationeries and computer maintenance business in Mtwara Mikindani municipal. Furthermore conducting this study will enable the researcher to gain more practical knowledge and skills on research knowledge learnt theoretically.

1.6 limitation and Delimitations of the Study

Lack of enough resources and financial support made the study to be difficult in conduct, because in collecting of data those who perform should give something in order for them to provide good answer which will be satisfy for researcher requirement also lack of cooperation.
This study focused in Mtwara Mikindani Municipality, the target population of this study is stationeries and computer maintenance business operator of small business within the town in Mtwara Mikindani municipality .The choice of this municipality was due to the fact that a large number of stationeries and computer maintenances are exist and that will be good enough for researcher.

1.7 Definition of key Terms used in the Study

Small enterprises, are companies whose personal numbers fall below certain limits
Stationery and Computer maintenance business, this involves offering services needed for writing such as papers, pens, pencils and practice of keeping computers in a good state of repair for payment (Acosta, 2007).
Factors affecting, are the things which are in a state of difficulty and requires great efforts and determinations (Collins dictionary).
Business, Performance Management, is a set of performance management and analytic processes that enables the management of an organization’s performance to achieve one or more pre-selected goals (Griffin & Elbert, 2006).

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter consists of the, empirical literature reviews, theoretical frame work and a research gap on Factors Affecting effective Performance of stationeries and computer maintenance business in Mtwara Mikindani municipality.

2.1 Empirical literature review

In Tanzania, the contribution of stationeries and computer maintenance business to economic growth is significant. Kolstad, Fjeldstad, Nygaard (2006) reported that constraints facing SMEs in Tanzania include competition (79.4%), cost of raw materials (69.4%), license and permit (67.5%), high tax rates (66.9%), insufficient demand (61.9%) and corruption (53.1%). However, studies reveal that SMEs lack a significant degree of understanding in marketing (Nwanko and Gbadamosi, 2010).
Also, according to Massawe and Calcopietro (1999), many business have low level of formal education and hardly have access to adequate training in business management consistent with the increasing challenges in competition and technology development. Moreover, studies explain that in Tanzania, regulatory and tax constraints appear largest for the smallest firms, declining somewhat as firms grow (Levy, 1993). Accordingly, better marketing services, support from technology development institutions and introduction of tax incentives will result to having a well-developed and competitive SME sector including stationeries and computer maintenance business Thus, this study wills factors affecting effective performance of stationeries and computer maintenance business in Mtwara Mikindani
2.1.1 Startup capital.
 Lack of funds could lead to excessive borrowing and consequently business becomes insolvent because their liabilities are higher than their assets. According to Dwivedi (2005), the role of financial institution is to facilitate the flow of funds from individual surplus spending units to deficit spending units. The whole of this process is called money market. And according to this author, the money market reaches its equilibrium where demand for money equals supply of money. The author adds that, to business firms or enterprises, money is the producer’s good much as machinery or inventories, thus in order to attain growth of any business, especially small sized ones, the business enterprise should acquire additional capital through the capital market in order to maximize their returns. Longenecker et al. (1997) stated that economies of scale virtually prohibit small businesses from always although frequently and sometimes using other sources of finance such as public stock issues.

2.1.2 Government regulations

Government regulations like taxation are regularly well intended and they benefits without question. However their costs to small businesses are relatively higher as a result small businesses normally do shift the burden of those costs to customers. Government regulations have been accused of distorting free markets by impending competition (Susman, 2007). Tanzania Government Sector
Study of the Effective Tax Burden (2006) suggests that tax and incentive policies are key parameters in defining a business climate. Taxes are essential for the financing of government activities such as social and economic development programs in the country, but at the same time, they should be set and administered to be as growth enabling as possible. In Tanzania the revenue raising authorities are the Ministry of finance that set tax policies and Tanzania Revenue Authority (TRA) that administers tax collection practice. Various laws and legislations have been enacted to guide the administration and collection of different taxes within the country and country that constitute the East African Community.

2.1.3 Access to capital and high cost of finance.

During the early stages of starting business many owners commit themselves to taking any sources of finance they have available to them. This can be disastrous as high interest rates and unfavorable payment schedules are overlooked due to pressure of financing their business. For the entrepreneurs taking high risk borrowing is simply a choice between starting a business and never starting the business. The best source of finance to small business can often be family and friends contributions but pay back in time. Small businesses are particularly vulnerable in periods of high interest rates because they rarely heavily on financial institutions for seasonal borrowing (Susman, 2007; Lambing &Kuhl, 2007).

2.1.4 Financial controls.

 Are the written ‘rule’ and procedures that let everyone know what should happen- who can do what, when and how. These include for example, who can sign cheques, which maintain the cashbooks, and how the petty cash is administered.
Some of these rules laid down by the constitution or memoranda and articles of association, in the case of registered companies) and others may simply be unwritten understandings, or ways of working traditionally adopted by the management committee (MC) or staff of the organization/business. All organization should have financial controls to ensure effective financial management (Basis Project Team, 2008).)

2.1.5 Business cycles and inflation.

This consists of recessions and depressions. Small businesses are strongly affected by these economics ups and downs. Rescissions and business low downs always cause quantum leap in the rate of small business failure.
When recessions occur during a particular time, many businesses are being affected and this could end up making some to be closed since they could not cope-up with the situation. Because small businesses are more susceptible to swings in the economy, they are more likely to fail during rescissions (Susman, 2007). Tushabomwe (2006) ascertains that lack of capital was an impediment in the early stages of small businesses. Small businesses failed because they were started with limited amounts of capital. Also micro businesses lacked collaterals that could be deposited to get loans provided by microfinance institutions.

2.1.6 Planning

Many small businesses do not realize the importance of planning to their firms’ success. Often managers of small businesses neglect the process of planning because they think that it is something that benefits only large companies. Failure to plan a firm’s future will have a devastating effect on the firm existence. This often manifests itself in two ways;
Lack of strategic plans (Strategic plan plots the overall direction of the business and identifies the ways of maximizing its strengths and overcoming its weaknesses) an   unplanned expansion (Growth is natural, healthy and desirable part of any business. But, it must be planned carefully. Expansion should be financed by the retained earnings or capital contributions from owners, but most small businesses wind up borrowing at least a portion of their capital investment). As the business increases in size and complexity, problems tend to increase in proportion and the managers must learn how to deal with it.
Sometimes entrepreneurs encourage that eventually the business outstrips their ability to manage. (Griffin& Ebert, 2006)

2.1.7 Location and Pricing

For many businesses choosing the location is partly a science. Too often business locations are chosen without proper study and planning. Location is much too critical to be left to chance. Some beginning owners choose a particular location just because they have seen a vacant place or building (Scarborough &Zimmerer, 2008; Lambing &Kuhl, 2007).
Entrepreneurs need to establish prices that will earn necessary profits by first understanding what it costs them to make, market, and deliver their products and services. Small businesses owners often underprice their goods and services resulting to losses that ultimately cause their failure (Tootelin&Gaedeke, 2002).

2.1.8 Control System and Inventory

Effective control system keeps the business in track and alert managers of any potential danger. If any control does not signal any impending problems you may seriously be troubled, then such controls are ineffective (Griffin & Ebert, 2006). Scarborough and Zimmerer (2008) argue that; the largest investment a small business makes is in inventory yet inventory control is one of the most neglected managerial responsibilities. Insufficient inventory levels results in shortages and stock outs causing customers to become disillusioned and leave. More common situation is that the manager has too much inventory, but also too much of the wrong type of inventory.
Many small businesses that fail due to poor inventory control, have excessive amounts of cash tied up in an accumulated useless inventory.

2.2 Theoretical literature review

The study guided by one theory which deeply explains the factors affecting effective performance of stationeries and computer maintenance business in Mtwara Mikindani, Tanzania, Africa as well worldwide. More thoughts have been put forward by various authors in relation to the factors affecting effective performance of stationeries and computer maintenance business contexts which lead to the risk of collapsing of business into any state. This study, the selected functionalist theory.

2.2.1 Functionalist Theory

The theory was propounded and developed by Emile Durkheim in 1915, he argued that “the organic unity of society leads to speculate about needs which must be met for social system to exist, as well as the way in which social institutions satisfy those needs such as every society will have a religion, because religious institution have certain functions which contribute to the survival of the social system as a whole’’. Social system work to maintain equilibrium and to return to it after external shocks disturb the balance among the social institution.
Social equilibrium is achieved mostly and importantly through socialization of members of the society into the basic values and norms of that society. According to Calhoun et al. (1994) there must be the inter dependence among organizations and parties of social system just as a human body as made up of inter related parts of which each part play a role of in maintaining a whole. Further argued that social system are composed of inter connected parts both support and depend one another and each part has some contributions that must make of the whole system to work well. Functions were the effects that some social groups or institutions have a system of relationship to other, if one part will not work accordingly, will affect other part within the system as a result it reduces efficiency and development of the society. Therefore, dysfunction of the system in the community in preventing flood disaster can cause different strategies not to be achieved.
The theory related to the study that, in order to improve performance of stationeries and computer maintenance business. These should be interdependence between system parties such the government and trader in order to of solving consider the factors affecting effective performance of stationeries and computer maintenance business for improvement of business in Mtwara Mikindani.
Therefore, the theory was used in this study to investigate the essential strategies for establishing and maintaining system in community of Mtwara Mikindani where by individual members, groups and organizations could work together as a unit toward on the performance of stationeries and computer maintenance business the area, in order to improve performance.

2.10 Research Gap

Some studies done by other researchers reviewed have some deficiencies which call for the need to conduct this study on the factors affecting effective performance of stationeries and computer maintenance business in Mtwara Mikindani Municipality. Ngedabankwa (2010) have been done in the regions of northern part of Tanzania and other parts of Tanzania and not in the southern part of Tanzania. Also some studies were based on rural SMEs for example that done by Olomi (2005), Opportunities and challenges for rural SMEs development in Tanzania, Economic and Social Research Foundation in Tanzania, Kazimoto (2014), Assessment of factors affecting small business’ performance in Nyamagana District, Tanzania and Calcopieto (1999), Tanzania small and medium enterprise; Policy proposed Report. UNIDO, Vienna. Therefore there was a gap between these studies which done in Mtwara Municipal and those which have been done in other areas. The study focused on socio-economic aspects that prevailing in the region and opportunities available for developing SME sector.
Therefore this study intended to bridge the gap by investigating the factors affecting effective performance of stationeries and computer maintenance business in Mtwara Mikindani Municipality.






CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Introduction

This chapter presents the methodologies used in order to attain the objective of this study. Therefore this chapter describes the research approaches, research design, methods of data collection, area of study, target population of the study, sampling procedure and sample size as well as data analysis, data presentation and Ethical consideration.

3.1 Research approach

This research includes Mixed Methods Approach, where by both qualitative and quantitative methods are combined in a single study (Kroll &Neri 2009). The qualitative and quantitative principles and procedures in designing, data collection, data analyzing, sampling techniques and data presentation techniques will be integrated in this research.

3.2 Research design

This study employed a case study design where enables a researcher to closely examine the data within a specific context. In most cases, a case study design selects a small geographical area or a very limited number of individuals as the subjects of study (Hosenfeld, 1984). In this study an area of Shangani ward, Rahaleo and Chikongola wards will be studied in deep and the individuals will be selected to provide the valuable information about the study.  Case study design used because, the true essence, explore and methodology to investigate contemporary real-life phenomenon through detailed contextual analysis of a limited number of events or conditions, and their relationships. Therefore, the drawn conclusion from this area represented other wards that comprise factors affecting effective performance of stationeries and computer maintenance business in Mtwara Mikindani Municipality.

3.3 Area of the Study

Mtwara is one of the regions in Tanzania which located in southern zone of Tanzania mainland. A region has six district councils including Mtwara urban district council, Mtwara rural district council, Masasi district council, Nanyumbu district council, Newala district council, Tandahimba and district council.
This study was conducted in Mtwara Mikindani Municipal which is found in Mtwara urban district. The Municipal had total number of 195 stationery and computer maintenance offices with the number of 152 owners and 513 (        ).  The study was conducted in three wards such as Shangani, Chikongola and Rahaleo where there are 83 owners and 312 workers and 79 stationery and computer maintenance offices. Therefore, this study focused on the assessment of the factors that affecting effective performance of stationeries and computer maintenance business in these selected wards.

3.4 Targeted Population

Population can be defined as the total number of possible units or elements that are the party of the study, while sample is representative of population as whole, in term of key characteristics (Ary, 2010). The Population is estimated to be 156,436 persons (2012 Census). The major occupation along the coastal strip is fishing with an average annual fish production of 385 metric Stons. Industry, trade and commerce are the major economic activities in the Central Business District (CBD). A number of other trading activities are also carried out along various streets. About 33% of the population is involved in urban agriculture. The municipal possess a total of 9,000 hectors of arable land but only 6,757 hectors has been utilized (SMEC, 2016).
Targeted population refers to a particular group of people that is identified as the intended recipient of an advertisement, product, or campaign (Ary, 2010).The targeted population of this study will be 50 workers of stationeries and  computer maintenance from the selected  wards including Shangani ward (Ligula street ,shangani west ), Rahaleo ward (bimastreet,madukanistreet) ,Chikongola ward (sabasaba  street)  as well as business officers from Mtwara Mikindani municipal in order to obtain reliable data concerning to the study.

3.5 Sample and Sampling Procedure

Sampling is the process of selecting respondents of only few items presenting the total population (Kothari, 2004). This research will employ simple random sampling and purposive sampling. Simple random sampling each individual were an equal chance of being selected and the procedure of simple random sampling was done through assigning a number to workers and owners then used a random number table to pick any. Also a purposive sampling is a non- representative subset of some large population and is constructed to serve a very specific need or purposive; this procedure was used for the municipal business officer(s) because they have enough skills and information of this study.

3.5.1 Sample Size

Kothari (2004) defined sample size as the number of items to be selected from the universe to constitutions sample. The sample size of this study used 50 respondents. The study conducted at Mtwara Mikindani municipal. The study will select 14 worker form each ward, also 6 owners for all ward and 2 municipal   business officers. Because of use of this number of respondents it was easy to get the information and management of time during the data collection.
Table 1: Sample Size Selected by the Researcher
Category of Respondents
Total
Rahaleo workers
14
Shangani workers
14
Chikongola
14
Owner
6
Municipal Business offers
2
Total
50
Source: Field Data, 2019

3.6 Methods of Data Collection

Research methods are all methods or techniques that are used for conduction of research (Kothari, 2004). Research methods are approaches and styles used by the researcher in data collection during the study (Riley et al, 2003). The study employed both primary and secondary data sources. Data collected from primary sources are known as primary data such as through observation, interviews and questionnaires. Primary data are also known as raw data. Data are collected from the original source in a controlled or an uncontrolled environment. And data collected from secondary sources are called secondary data such as through documentary review. Using more than one specific method enables a researcher to cross-validate the information and data collected from a variety of sources. Thus, combination of questionnaires, interviews, observation and documentary review will be used. The methods used to collect each type of data are described below:- 

3.6.1 Questionnaires

A questionnaire is a document designed to collect information appropriate to be analyzed (Kothari, 2004). The researcher used both open and closed ended questions whereby; open questions used to understand their opinions and allowed respondent to give answers in the own way.Closed ended questions were used because they are easy to code and less consume less time.

3.6.2 Interview

An interview is a two way systematic conversation between an investigator and an informant, intended for obtaining information relevant to a specific study (Krishnaswani, 1983).The interviewer and interviewees engage in oral questioning. The researcher used both structured and unstructured interview to get information because it gives chances to respondent to express reliable information concerned the study. This method was used also to those who did not have time to respond the questionnaires in order to get the additional information.

 3.7 Sampling and Sampling Techniques

Sampling is the act, process, or technique of selecting a suitable sample; specifically, the act, process, or technique of selecting a representative part of a population for the purpose of determining parameters or characteristics of the whole population (Hoover and Kenneth, 1992). This study will use non- probability sampling techniques. In this study one technique from non-probability sampling used which is Purposive sampling was used as the method of getting sample of respondents.

3.7.1 Purposive Sampling

Purposive sampling is a sampling technique in which researcher relies on his or her own judgment when choosing members of population to participate in the study. Purposive sampling is a non-probability sampling method and it occurs when “elements selected for the sample are chosen by the judgment of the researcher (Kothari, 2004). Therefore, worker and the people who owned properties in the selected strict, District business officer of Mtwara Mikindani and Regional business officer of Mtwara region  being purposively selected to respond to this study.

3.7.2 Simple random sampling

According to Waugh (2009) simple random sampling is the type of sampling under normal circumstances is the ideal type of sample because it shows no bias. Every member of the total population has an equal chance of being selected and selection of one member does not affect the probability of selection of another member. The researcher used this technique to get sample from the worker .Under this procedure the researcher assigned numbers on the pieces of paper, fold them and throw them to the respondents.

3.8   Sources of data

Data collected include both primary and secondary data where necessary.

3.8.1 Primary data

These collected from the sample population in the field whereby questionnaires and unstructured interview will be employed to gather data in the study.

3.8.2Secondary data

These obtained from magazines, newspapers, and internet, books and journals.

3.9 Data Analysis

Data analysis is the process of systematically applying statistical or logical techniques to describe and illustrate, condense and recap, and evaluate data. Data analysis is an attempt by the researcher, to present, summarize, collected data in dependable and accurate manner (Riley et al, 2003). The study used both qualitative and quantitative data analysis. Therefore, analysis of data will consists tabulated statistical data, charts and graph which appropriate to the researcher questions being asked, this method used in analyzing qualitative data which collected from the respondents by descriptions concerned with the study. Also data analyzed through graph, charts and tables by using computer programs like micro soft excel analyzed the quantitative data during data analysis.

3.10 Data Presentation

Data presentation is the method by which people summarize, organize and communicate information using a variety of tools, such as diagrams, distribution charts and graphs (Riley et al, 2003). In this study the research the researcher presented the data by using qualitative approach which presented the data related to description form.
Also the researcher presented the data by quantitative approach by using graphs, pie charts and tables. This method enabled the researcher to summarize the results on the Factors Affecting effective Performance of stationeries and computer maintenance business.

3.11 Ethical Consideration

Ethical standards were observed in the conduct of the study. First, the researcher requested the research clearance form from the STEMMUCO Administration. This enabled the researcher to obtain further permit from Mtwara regional administration. During data collection stage, informants for this study requested their informed consent. Therefore, being their choice to participate in the study. This was done through explaining to them the purpose of the study and guaranteeing their privacy and confidentiality of information.
In addition, the researcher will ensure the security of informants from physical, psychological and social harm through ensuring that the collected data are used for the predetermined purpose and obstruct unauthorized persons to access collected data. In reporting the findings, neither the names of schools nor of people will be included in the sample which will be researcher








CHAPTER FOUR

DATA PRESENTATION AND DISCUSSION

4.0 Introduction

This chapter is divided into three sections: demographic characteristics of the respondents, data presentation and analysis as well as discussion of research results.

4.1 Demographic characteristicsof the respondents

This section comprised the gender of the respondents, age structures of the respondents, occupations of the respondents and level of education of the respondents.

4.1.1 Sex of respondents

The research findings show that the total numbers of respondents in the field were 50. Therefore, 22 (44%) of respondents were females which accounts and 28 (56%) of the respondents were males. A reason for why males were mostly involved in this study, many of owners and workers are males.
Table 4.1: Gender of the respondents
Gender of the respondents
Frequency
Percentage
Female
22
44
Male
28
56
Total
50
100
Source: Field Data 2019

4.1.2 Age Structure of the Respondents

According to the table 2 show that the age group of the sample size was divided into three (3) groups, group one ranged from 12-20 years old were 18(36%) respondents, the second group was ranging from 21-30 years old were 7(14%) of the respondents, the third group had 25 respondents from a group ranged from 31 above were 25 (50%) respondents out of 50 total sample. Therefore, the research findings reveal that 50 per cent of the respondents aged from 31 and above, because they were working generation that fights for the improvement of their lives.
Table 2: Age structure of the respondents
Age structure of the respondents
Frequency
Percentage
12-20
18
36
21-30
7
14
31+
25
50
Total
50
100
Source: Field Data 2019

4.1.3 Ownership

 According to table 3 shows that the study included two groups of people with various occupations, the reasons behind why the study included the people with various occupations is that the researcher wanted to get the detailed and reliable information from the field. According to the table prove that about 19 (38%) of the respondents were owners and 31(62%) of the respondents were workers. About 62 percent of the total population were workers, this revealed that many people of Mtwara Mikindani Municipal who are involved in stationery and computer maintenance business are owning labour power rather than material resources such as capital. 
Table 3: Ownership
Occupations of the respondents
Frequency
Percentage
Owners
19
38
Workers
31
62
Total
50
100
Source: Field Data 2019

4.1.4 Level of education of the respondents

According to table 4 show that about 15 (30%) out of 50 respondents had primary education, 30 (60%) respondents had secondary level of education and 5 (10%) the respondents had the university or colleges education. Therefore, the study results revealed that about 60 percent of the total sample, many people with secondary level of education were seem to be involved in stationery and computer maintenance business because they had a sense of establish and sustain their lives as many failed a form four national examination enough to continue with the followed level of education.

Table 4.4: Level of education of the respondents

Level of education of the respondents
Frequency
Percentage
Primary education
15
30
Secondary education
30
60
Colleges and University education
5
10
Total
50
100
Source: Field Data 2019
4.2 Data presentation and analysis
The data analysis was done in line with specific objectives such as;to determine the social factors affecting effective Performance of stationeries and computer maintenance business in Mtwara Mikindani municipal, to examine the economic factors affecting effective Performance of stationeries and computer maintenance business in Mtwara Mikindani municipal and identify others related factors Affecting Performance effective of   stationeries and computer maintenance business in Mtwara Mikindani municipal.

4.2.1 Social factors that affect stationeries and computer maintenance businesses in Mtwara Mikindani Municipal

The specific objective was;to determine the social factors affecting effective Performance of stationeries and computer maintenance business in Mtwara Mikindani municipal. An objective was designed to the stationery and computer maintenance workers, the owners and the municipal business officers. The respondents provided the answers concerning this question as presented in the table 6
Table 6: Social factors that affecting stationary and computer maintenance businesses
Social factors that affecting stationary and computer maintenance  businesses
Frequency
Percentages
Location and Pricing                 
10
20
Electricity supply
  9
18
Lack of Entrepreneur Skills
17
34
Control system and inventoryMotivation
 8
16
Relationship
6
12
Total
50
100
Source: Field, 2019
From the data presented in table 6 on social factors that affect stationary and computer maintenance businesses in Mtwara Mikindani municipality, one the social factors was; location of stationeries’ and price of equipment   which responded by 10 respondent with an equivalent to 20% . From the data proved by workers respondents that there is problem of choosing location due consideration to number of customers, availability of others stationeries’ and computer maintains offices that determine their establishment and improvement. Therefore, many stationeries and computer maintenance business become died because since there occur few or no customers that are determined by the location.
Another on social that affect stationary and computer maintenance businesses in Mtwara Mikindani municipality is the lack of entrepreneur skills which responded by 17 respondents with equivalent to 34 % of the total respondents. From the data provided by the municipal business officer, many stationary workers lack essential skills on how to run the operations and managing the money and material resources, as a result many workers get low performance and improvement in stationary and computer maintenance businesses, for example workers in Shangani and Rahaleo ward are working poorly the issues concerning in this matter because they lack essential skills.
Control System and Inventory motivation  was revealed as one of the social factors affect stationary and computer maintenance  business which gained 8 respondent with an equivalent to  16% from the data provided  by the owner  ,that is very difficult for the owner to control how the worker do their work and  how  much  money gained from  the operation done. Some of the worker are not trustful concerning money issue as a result owner get low motivation.

From  the table on the social  factors affecting stationary  and computer  maintenance  business ,electricity supply was one among the factors as 9 respondent this manner with the equivalent 18%.the owner and worker revealed that that electricity is an essential factor  for easy and good performance in stationeries  and computer maintenance business in MtwaraMikindani Municipal


Graph 4.2 Social factors that affecting stationary and computer maintenance business
Source Field data

4.2.2 Economic factors that affect stationeries and computer maintenance businesses in Mtwara Mikindani municipal

The specific objective was;to examine the economic factors affecting effective Performance of stationeries and computer maintenance business in Mtwara Mikindani Municipal. The question was delivered from this specific objective and designed to the stationary and computer maintenance workers, the owners and the municipal business officers. The respondents provided the answers concerning this question as presented in the table 7 below
Table 7: Economic factors that affecting stationary and computer maintenance businesses
Economic factors
Frequency
Percentages
Lack of Proper Business Plan
  8
16
Cost of Marketing  forproducts
  7
14
Scarce of Capital
 19
38
Change in Technology
10
20
Government regulations/taxes
 6
12
Total
50
100
Source 2009
From the data presented in table 4.6 on economic factors that affect stationery and computer maintenance businesses in Mtwara Mikindani Municipality, one the economic factors was the scarce capital which responded by 19 (38%)of the total respondents. Many workers respondents responded that they are faced by this problem that lead to the excessive borrowing and consequently asking for loans that later the performance becomes to be poor in stationeries and computer maintenance businesses.

            Another factor on economic aspect that affect stationery and computer maintenance businesses in Mtwara Mikindani municipality is the government regulations, this was responded by6 (12%) of the total respondents. From the data provided by the owners that, the government regulations like taxation are regularly well intended and they benefits without question. However their costs to businesses are relatively higher as a result businesses normally do shift the burden of those costs to customers many stationary decline or performance in low level due cost full operations and high taxes from government as a result many workers get low performance and improvement in stationary and computer maintenance businesses, for example workers in Shangani and Rahaleo wards.

            Another on economic that affect stationary and computer maintenance businesses in Mtwara Mikindani municipality is the lack of proper business plan  which responded by 8 respondents with equivalent to 16 % of the total respondents. Respondents said the lack of proper business plan affect business because many small businesses do not realize the importance of planning to their firms’ success. Often managers of small businesses neglect the process of planning because they think that it is something that benefits only large companies. Failure to plan a firm’s future will have a devastating effect on the firm existence.

            About 7 (14%) respondents of the total respondents identifiedcost of marketing forproducts to be used in these businesses as one of the challenges affect effectiveness in stationeries and computer maintenance businesses. There are high costs in buying products services such as equipments that creating the facilitative environment that support these businesses such as printers, computers, external case, software,rooms, electricity and the like. Some of the workers said that “stationary and computer facilities are of high cost, for example printer is sold about five hundred thousand shillings (500,000 Tshs) as a result failure to buy stationary facilities for long time use with maximum efficiency”.Therefore, many stationery and computer maintenance owners failed to afford purchasing the important needed facilities.
            From the table 7 on the economic factors that affect stationery and computer maintenance businesses in Mtwara Mikindani, one of the factors is technology change as responded by 10 (20%) respondents. From the data provide by computer maintenance workersthat they are faced by immediate change in computer products and other product models.For, example different version of computer that affect activates also in stationeries affected with designing programmers such as adobes.
Chart 4.2 Economic factors that affecting stationary and computer maintenance businesses
Source: Field data, 201

4.3 Other factors that affect effective performance of stationeries and computer maintenance business in Mtwara Mikindani Municipality

The question in this issue was; what are other factors affecting effective Performance of stationeries and computer maintenance business in Mtwara Mikindani municipal. The question was designed to the stationary and computer maintenance workers, the owners and the municipal business officers. The respondents provided the answers concerning this question as presented in the table 8
Table 8 The other factors related factors that affect effective performance of stationeries and computer maintenance business in Mtwara Mikindani Municipality
Other factors
Frequency
Percentages
Administrative  problem
16
32
Corruption
13
26
Poor infrastructure
21
42
TOTAL
50
100
Source Field data, 2019
            Administrative problem isthe one of thechallenges that affecting effective performance of stationeries and computer maintenance businesses. About 16 (32%) respondents of the total respondents in this study, it was revealed that there is a problem during of registration of businesses as done and monitored by the authority, the process may lead into time consuming that become a challenge to the workers and owners of stationeries and computer maintenance business which might take long time to start.
            Poor infrastructure was another challenge that affect effective performance of stationeries and computer maintenance businesses. About 21 (42%) respondents out of the total respondents who involved in this study, they responded that poor infrastructure lead to the ineffective performance for activates involved in stationeries and computer maintenance offices. These infrastructures are like rooms and machinery-based facilities as result to the inequality services that are provided and finally reduced a number of customers that are very essential for these business operations and development.
            Another challenge that affect effective performance of stationeries and computer maintenance businessesis corruption. About 13 (26%) respondents responded that in the process of the establishment of the businesses. Some government officials are ordering to be given some amount of money in order ones business to be registered. Some stationery owners responded that, the respective officials are neglect the laws and regulation needed in registering these businesses but bad enough they are coming to order to give bribe.

 


CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.0 Introduction

This chapter presents the summary, conclusion and recommendations from the findings of the study and it also gives the suggestions for further research.

5.1 Summary

The study generally focused an assessment of the factors affecting effective performance of stationeries and computer maintenance business. To enrich this, the study worked under three main objectives which are aimed at; to determine the socio factors affecting effective Performance of stationeries and computer maintenance business, examining the economic affecting effective Performance of stationeries and computer maintenance business and identify others factors Affecting Performance effective of  stationeries and computer maintenance business in Mtwara Mikindani Municipality.
The study involved 50 respondents from three wards of Shangani, Rahaleo and Chikongolo who were selected from workers, owners and Municipal business officers of Mtwara Mikindani Municipality The respondents were obtained through purposive and simple random sampling in attempting questionnaire and oral interview while their responses enriched through documentary review done by researcher
Based on the first specific objective, the socio factors affecting effective Performance of stationeries and computer maintenance business, enacting lack of enterpership skill, contor to
Apart from that, in the case of second objective, the economic affecting effective Performance of stationeries and computer maintenance business Mtwara Mikindani Municipality these include; government regulations/taxes change in technology, scarce of capital, cost of marketing for products, lack of Proper Business Plan .Through that contribute to reduced Performance effective of   stationeries and computer maintenance business.
Nevertheless, the study through third objective found that identify others factors Affecting Performance effective of   stationeries and computer maintenance business. Administrative problem poor infrastructure, corruption through these,
As the matter of concern, the study recommended that the owners should invest much in stationeries  and  computer maintenances  for employment of people  since it is a sector which grows quickly hence there is a need for our owner to take this opportunity rather than to performance in low level  since they can motivated  to increasing income

5.2 Conclusion

The findings from the study have shown that there is no progress of business at the enterprise level as claimed by more than 60%, the reasons behind this failure have been attributed to the poor national economy and the borrowers do not inject the 94 capital on the enterprises but on different fixed assets, goods and services. Thus the results can be discussed by using the responses of each factor but also by combining those who strongly agreed or agreed in one part and those who disagreed and strongly disagree in the other part and those who were not having any response to the specific factor. Thus from the analysis above it shows that 96.6% of the respondents strongly agreed and agreed on poor location of market where 33.3% strongly agreed and 63.3% agreed, 95% on low entrepreneurship skills where 30% strongly agreed and 65% agreed, 93.3% respondents agreed on lack of capital where 65% strongly agreed and 28.3% agreed that poor performance of SMEs is contributed by inadequacy of capital to expand the business. Poor information network also affect the performance of SMEs where by 90% of the respondents agreed on this factor. Thus as discussed in each table it can be concluded that all factors that have more than 50% of respondents who agrees or strongly agreed affect SMEs performance in one way or another. And if 50% of the respondents disagreed or strongly disagreed on the factor it indicates that such factor has no much influence on the performance of SMEs. On the other hand, other factors, which were thought by the researcher to affect the performance of SMEs like bureaucracy in registering a business and corruption by government officials was negated by most of the respondents since the large percent of respondents, disagreed on both two factors.
 Other factors that affect the performance of SMEs were responded by large percent of the respondents. Other factors that have been raised from the questionnaires mostly by the respondents includes; more tax that taxed by the TRA and other authorities like 47 Local Government Authorities (LGA), TFDA, registering a business or business licence, rent of a frame, posts of the business mostly known as Bango and other contributions like keep the Municipal clean. The responses on factors that affect the performance of SMEs in Mtwara Mikindani Municipal as responded by government and non-government officials include: (i) Poor business records. Most of the SMEs get problem in business records thus fail to prepare the financial report, which can help them to access bank loan when needed.
(ii) Getting credit is also a challenge to most of the SMEs. Most of the SMEs do not have education on how to acquire bank loans and they don’t have securities needed by the bank so as to access bank loans. They have traditional ways of searching for help.
 (iii) Imitation of one’s business. Most of the businesses fail to progress due to lack of information about a business he or she do. One can get money from bank and do a business which he or she does not have enough information only because someone does it.
(iv) Failure to register the business. This also is another factor that affects SMEs performance since most of them they don’t register their business thus fail to access bank loan but also their business can be closed by government officials once they are caught. This becomes a challenge to one who starts a business without following the procedures.
(v) Lack of bank relationships. This is when a businessman doesn’t have education to keep money in banks thus limiting him or her to get bank loan but also security becomes low.
(vi) Borrowing money from different financial institutions more than one can affect his or her performance

5.3 RECOMMENDATIONS

With no doubts stationeries and computer maintenance business play a big part in the growth of economies in Tanzania. They roles on employment creation fight the same way as the government focuses on poverty eradication. The study findings revealed that most of the small business still operates informally in which the researcher seems to be conscious that the government is losing a lot in terms of tax collections. The appended below are the researchers recommendations basing on the study finding;
5.3.1 to the Ministry of Business
The economy of Tanzania is growing rapidly, and Tanzania has opened its borders to international business platforms. Therefore, Tanzanian government under the respective ministry should understand the level of small business especially stationery and computer maintenance development in various districts in Tanzania as whole. The ministry under the respective department should create friendly environment for the good and effective performance in stationery and computer maintenance business, so there should be facilitative rules and regulations to control these kinds of businesses. Also, the ministry should have a participatory approach that will clearly integrate essential stakeholders such as workers and owners. 

5.3.2 To the Owners and Workers

The workers and owners of stationery and computer maintenance businesses in Mtwara Mikindani Municipal and in other districts in Tanzania should make sure that they have capital enough to conduct these businesses; they should generate business mind, creativity and self-confidence. Furthermore, the owners and workers should make effort to participate in decision making with the respective authorities and finally adhering the rules and regulations agreed. Also, worker should participate in others worker in order to change idea consider with stationeries and computer maintainers.

5.3.3 To the Area for further studies

This study have identified the factors that affect the effective performance in stationery and computer maintenance business, the other researchers may come up investigating other issues related to this businesses. For, example, the future studies may investigate the measures taken by various stakeholders towards/ addressing the factors affecting the effective performance in stationeries and computer maintenance business in Mtwara Mikindani Municipality.

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APPENDIX I

Questionnaire to

Dear respondent,
My name is KAWONGA ,Godluck  H. I am a student at Stella Maris Mtwara University College (STEMMUCO). I am conducting research An   Assessment of the Factors Affecting effective Performance of stationeries and computer maintenance business.   The aim of this questionnaire is to gather information from you. Kindly respond to the items of this questionnaire as honest as possible. The information provided will be used for the purpose of research only. Do not indicate your name on this questionnaire.
INTRODUCTION: Put a tick in the box status
i. Gender: Male [       ],   Female [       ],
ii Age: 18-25 [      ]       26-33 [      ]    34-41 [      ]     42 and above [         ]
iii. Education level:   Diploma [      ],      Degree [       ]
1.      What are socio factors affecting effective Performance of stationeries and computer maintenance business in your area?
i)                    ......................................................................................................................................
ii)                  .......................................................................................................................................
iii)                .......................................................................................................................................
iv)                ......................................................................................................................................
v)                  ......................................................................................................................................
2. What are the economic affecting effective Performance of stationeries and computer maintenance business in Mtwara Mikindani Municipality?
i)                    .........................................................................................................................................
ii)                  ........................................................................................................................................
iii)                ........................................................................................................................................
iv)                ..........................................................................................................................................
v)                  .........................................................................................................................................
3. What are the others factors Affecting Performance effective of   stationeries and computer maintenance business in Mtwara Mikindani Municipality?
i)                    ..........................................................................................................................................
ii)                  ..........................................................................................................................................
iii)                ..........................................................................................................................................
iv)                ..........................................................................................................................................
v)                  ..........................................................................................................................................
4. In your view, what should be done to improve Performance of stationeries and computer maintenance business in your area in your area?
i)        ……………………………………………………………………………………………
ii)      ……………………………………………………………………………………………
iii)    …………………………………………………………………………………………...

Thank you for your cooperation

APPENDIX II

Interview Guideline for Performance of stationeries and computer maintenance business
Part One.
(i) Age
(ii) Sex
(iii) Education level
Part Two.
2.      What are socio factors affecting effective Performance of stationeries and computer maintenance business in your area?
3.      What are the economic affecting effective Performance of stationeries and computer maintenance business in Mtwara Mikindani Municipality?
4.      What are the others factors Affecting Performance effective of   stationeries and computer maintenance business in Mtwara Mikindani municipality?




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