An Assessment of the Factors Affecting effective Performance of stationeries and computer maintenance business
STELLA
MARIS MTWARA UNIVERSITY COLLEGE
(A Constituent College of Saint Augustine University of Tanzania)
Faculty
of Education
An
Assessment of the Factors Affecting effective Performance of
stationeries and computer maintenance business
A
case of Mtwara Mikindani Municipality
A Research Report
submitted to the Faculty of Education in Partial fulfillment of the Requirement
for the Award Bachelor of Arts with Education of Stella Maris Mtwara University
College.
BY
Kawonga,
Godluck H.
STE/BAED/162944
MAY,
2019
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
A 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 spend 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.
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 (Scarborough & Zimmerer,
2008; Availability 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 of 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 was 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
was 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 will help 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 will provide
information and education about factors affecting performance effective of
stationeries and computer maintenance business in Mtwara Mikindani
municipal. The study will provide
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.
Also,
the study will be 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 the study contribute knowledge to the existing literature
about the asses the Factors
Affecting Performance effective of stationeries and computer maintenance
business in Mtwara Mikindani municipal.
1.6 Limitation
of the Study
Lack of enough resources and
financial support made the study to be difficult in conduct, because in collecting
of data from the respondents, they demanded give something in order for them to
provide good answer which will be satisfy for research requirements. In
addressing this limitation, a researcher decided to sat down with the
respondents and tell them that this study is for their own benefits since the
study will identify the challenges that affecting them to effective
stationeries and computer maintenance businesses.
1.7 Definition of key Terms used in
the Study
Small enterprises, are
companies whose personal numbers fall below certain limits.
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 & Ebert, 2006).
Stationery
and Computer maintenance business, this
involves offering
services needed for
writing, such as paper, 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 effort and determination
(Collins dictionary).
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
identified the 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 lay 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 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. Therefore, there should
be interdependence between system parties such the government and trader in
order to of solving 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.
2.3 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 Municipal.
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 employed a 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 were 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 studied
in deep and the individuals were 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 where by
three wards such as Shangani, Chikongola and Rahaleo were involved in this
study focusing on the assessment of the factors that affecting effective
performance of stationeries and computer maintenance business.
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 in Mwara Mikindani Municipal 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 tons. 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 (bima street,madukani street) ,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 had 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 selected 14 worker from 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.
3:1 Sample Size Selected
|
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. 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.
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.
3.8.2
Secondary data
These were 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 consisted 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 ensured
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.
CHAPTER
FOUR
DATA
PRESENTATION, DISCUSION
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 characteristics of 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 Gender of respondents
The research findings show that the
total numbers of respondents in the field were 50 who were interviewed and
filled the questionnaire that were used to represent the whole population of
the study area. According to table 4.1 show that 22 (44%) of respondents were
females which accounts and 28 (56%) of the respondents were males. A reason for
why males are mostly involved in this study is many 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
|
5SS 0
|
100
|
Source: Field Data 2019
Figure 4.1: Gender of the
respondents
4.1.2 Age Structure
of the Respondents
According to the table 4.1 show
that the age group of the sample size was divided into three(3) groups,
starting with the group one ranged from 12-20 years old most of this group were
students of secondary schools and this group had 18(36%) respondents, the
second group was ranging from 21-30
years old this group included the local communities this group had 7(14%) of the respondents, the fourth group had 25 respondents and the third group
ranged from 31 and above had 25 (50%)
respondents out of 100 total sample. Therefore, the research included various
people with various age so that to get accurate data.
Table 4.2: 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
Chart 4.2: Age structure of the
respondents
Source: Field Data, 2019
4.1.3 Ownership
According to table 4.3 shows that the study
included different 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, 31(62%) of
the respondents were worker and 31(62%)
Table 4.3: Ownership
|
Occupations of the respondents
|
Frequency
|
Percentage
|
|
Owners
|
19
|
38
|
|
Workers
|
31
|
62
|
|
Total
|
50
|
100
|
Source: Field Data 2019
19 respondents which is equivalent
to 38% were the owners while 31 respondents equivalent to 62% were workers. It
is revealed that the owners of business were few compared to workers.
4.1.4 Level of education of the respondents
According
to table 4.4 show that about 15 (30%) out of 50 respondents had primary
education, 30(60%) of respondents had secondary level of education and 5(10%)
of the respondents had the university or colleges education. Therefore, the
study included various respondents with different level of educations in order
to get reliable and deep information.
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 probe question was; what are
the socio 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 4.5
Table 4.5 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 inventory Motivation
|
8
|
16
|
|
Relationship
|
6
|
12
|
|
Total
|
50
|
100
|
Source: Field, 2019
From the data presented in table
4.5 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.
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 Mtwara Mikindani 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 probe question was; what are
the economic 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 4.6
Table 4.6 Economic factors that
affecting stationary and computer maintenance businesses
|
Economic
factors
|
Frequency
|
Percentages
|
|
Lack of Proper Business Plan
|
8
|
16
|
|
Cost of Marketing for products
|
7
|
14
|
|
Scarce of Capital
|
19
|
38
|
|
Change in Technology
|
10
|
20
|
|
Government regulations/taxes
|
6
|
12
|
|
Total
|
50
|
100
|
From the data presented in table
4.6 on economic factors that affect stationary and computer maintenance
businesses in Mtwara Mikindani municipality, one the economic factors was;
Scarce of capital which responded by 19 respondent with an equivalent to 38% .
From the data proved by workers respondents that there lead to excessive
borrowing and consequently business becomes insolvent because their liabilities
are higher than their assets in order to improvement
Another on economic that affect
stationary and computer maintenance businesses in Mtwara Mikindani municipality
is the government regulations which responded by 6 respondents with equivalent
to 12 % of the total respondents from the data provided by the owners. 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 ward.
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%) of the total
respondents identified cost of marketing for products as one of the challenges
affect effectiveness in stationeries and computer maintenance businesses. There
are high costs in buying products as equipments and creating the facilitative
environment that support these businesses such as rooms, electricity and the
like. From the data provided by the workers said that
“vifaa
vya steshenari na computa ni ghali sana, kwa mfano printer inauzwa shilingi
laki tano, na hivyo tunashindwa
kununua vifaa ya kudumu na kwa matumizi yenye ufanisi” Translation- “stationary and computer facilities are of
high cost, for example printer is sold about
five hundred thousand shillings as a result failure to buy stationary facilities
for long time use with maximum
efficiency”.
From
the table 4.6 on the economic factors that affect stationary and computer
maintenance businesses in Mtwara Mikindani, one of the factors is technology
change as responded by 10 respondents equals to 20%. For the data provide by computer maintenance workers
they are immediately change in
computer product 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, 2019
4.3
Other
factors related factors which 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 4.6
Table
4.7 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
|
11
|
33
|
|
Corruption
|
9
|
18
|
|
Poor
infrastructure
|
13
|
39
|
|
TOTAL
|
33
|
100
|
Source Field data, 2019
Administrative problem is the one of the challenges that affecting
effective performance of stationeries and computer maintenance businesses About
11 (33%) of the respondents who involved in this study who were involved in the
problem during of registration of business may lead to the time consuming are
the challenges associated with the stationeries
and computer maintenance business which might make the to start business users consume a lot of time
findings services
Poor
infrastructure was another challenge that affect effective performance of stationeries
and computer maintenance businesses about
13(38%) of the respondents who involved in this study who were involved in, the
provision poor infrastructure lead to the time consuming for activates for consume and workers as result reduced number of consumer and contributed low level of performance in stationeries and computer maintenance
business , users consume a lot of time findings services.
Another
challenge that affects effective performance of stationeries and computer
maintenance businesses is
corruption, the establishment of the laws is one of the solutions that were
pointed out by the respondents in the field. About 9 (18%) of the respondents
identified the establishment of laws will enable the users to be care on the
use of the materials because some of the poor organization of the materials in
library associated with poor organization of the materials so after the using
them so the laws will help to punish those who use library badly.
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 and Raha leo and Chikongolo who were selected from worker, 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 entrepreneurial skill.
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
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;
- The economy
of Tanzania is growing rapidly, and Tanzania has opened its borders to
international business platforms. Therefore, scholars, practitioners,
Tanzania Investment Centre and government should understand the level of
small business development, which plays a significant role in providing
auxiliary services to multinational corporations. Accesses to stationeries and computer maintenance
business have to be improved and the processes should be simplified
so that many Micro and Small entrepreneurs can access.
- The
researcher found it is essential to determine whether small-business
management practices and policies developed and practiced in the developed
countries are valid in a developing country like Tanzania. In most cases
we adopt the operations which practically are not doable and put obstacles
for the development of our SMEs sector which currently assessed to be
contributing about 14% to 18% of the country GDP.
- Further,
this study draws management and policy-makers' attention to the urgent
need for specific management practices to enhance the effectiveness and
sustainability of small-businesses in Tanzania.
- Finally, the study reveals most of the do stationeries and computer maintenance business. not have registration. This also has made them to experience credit rationing when approaching banks and microfinance for the loan facilities. Entrepreneurs are highly advised to register their business, and the government should extend its arm on providing entrepreneurs training and encourage them stationeries and computer maintenance business owners to register their businesses.
APPENDIX I
QUESTIONNAIRE
TO THE BUSINESS OFFICER
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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