Partnership for inclusive growth: Can linkages with large firms spur the growth of SMEs in Tanzania?

Kweka, Josaphat; Sooi, Fadhili

doi:10.35188/unu-wider/2020/859-7

Cited by 4 publications

(4 citation statements)

References 14 publications

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“…The divergent relationship may be due to inadequate capacity stemming from the small size of MSMEs compared with their counterpart large firms and hence non-realization of expected results. Kweka and Sooi (2020) show that business linkages between SMEs and large firms are weak in Tanzania and they argue that establishing business linkages is influenced by firm's level of production capacity, training, participation in exporting, and technology partnerships.…”

Section: The Influence Of Non-financial Business Support Services On Msmes Developmentmentioning

confidence: 99%

Utilization of non-financial business support services to aid development of Micro, Small and Medium Enterprises (MSMEs) in Tanzania

Lwesya

Mwakalobo

Mbukwa

2021

SBIR

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A variety of factors inhibit the development of MSMEs in African countries, which in turn affects entrepreneurship, job creation and economic transformation. Using cross-sectional data from 250 MSMEs in the Dar es Salaam region, we find in most of the examined variables the positive relationship between the use of non-financial business support services (BDS) and the development of MSMEs in the Dar es Salaam region. However, contrary to expectations, building business linkages and mentoring programs recorded negative relationships with MSMEs development. This is related to restricted capacities stemming from the size of MSMEs compared to large companies and deficiencies in the content of mentoring programs. In addition, the discrepancy between BDS demand and supply as well as the low adoption rate of BDS are associated with the inadequate adaptation of BDS to the needs of MSMEs, high service costs and a lack of qualified service providers. Thus, we argue that the provision of BDS to MSMEs should be demand-driven and that institutions should build on the pre-eminent characteristics of MSMEs when designing business support programs. On the other hand, Government efforts to nurture the development of MSMEs through policies and programs should extend to promoting business linkages between MSMEs and large enterprises.

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Section: The Influence Of Non-financial Business Support Services On Msmes Developmentmentioning

confidence: 99%

Utilization of non-financial business support services to aid development of Micro, Small and Medium Enterprises (MSMEs) in Tanzania

Lwesya

Mwakalobo

Mbukwa

2021

SBIR

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“…Kweka and Sooi reported an average of 25%-30% growth in the number of employees for SMEs pursuing JVs and strategic partnerships. 30 This was appropriately higher than 5% of the growth rate reported in sole proprietorships. SMEs engaging in strategic JVs and linkages had a relatively higher likelihood of achieving growth than sole proprietorships due to shared resources, marketing information, skills and experience.…”

Section: Empirical Review and Hypothesis Developmentmentioning

confidence: 74%

Joint Ventures for SMEs Competitiveness and Inclusive Growth: A Comparative Analysis of SMEs in Mbeya, Tanzania

Israel

2022

EHASS

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The inclusive growth of SMEs has recently gained much recognition from scholars and policymakers. However, the pertinent question is, what is the best approach toward SME growth? This article examines the effects of Joint Venture (JV) undertaking on SMEs’ competitiveness and inclusive growth in Tanzania’s business setting. 192 (87 JV firms and 105 sole proprietors) were sampled from Mbeya City, Tanzania using a stratified systematic sampling technique for analysis. Data was collected using the survey method. The effects of JV on the SMEs’ competitiveness and growth were established by the pattern of percentages and the level of significance (p-values) using the independent t-test. It was found that SMEs operating as JV were more competitive, with a higher ability to meet financial, cost, quality, innovation, time and market requirements compared to sole proprietors. Nevertheless, JV firms revealed higher significant growth indicators in terms of sales volume, profit margin, market share, number of employees, working assets, production volume and business diversification than sole proprietors. Limited financial resources, inadequate production facilities, limited experience, unfavourable trade laws and socio-cultural factors constrain SMEs from JV undertaking. To policymakers and scholars, this article highlights the role and the determinants of JV undertakings as an important approach toward improved SMEs’ competitiveness and inclusive growth. Keywords: Joint ventures, SMEs’ competitiveness, inclusive growth, Mbeya-Tanzania

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“…The majority of food processing SMEs struggle to enhance their financial sustainability, survival and growth. Experience shows that only 40% of food processing SMEs are capable of meeting their financial obligations, while the remaining 60% experience decline within six months of the establishment (World Bank, 2020;Kweka & Sooi, 2020). Additionally, a mere 20% of food processing SMEs are successful in attracting and retaining customers (World Bank, 2020).…”

Section: Introductionmentioning

confidence: 99%

“…Scholars have proposed various methods, approaches and strategies to enhance the operational and financial sustainability, growth and development of food processing SMEs. These recommendations include the adoption of strategic partnerships, collaborations, networking and joint ventures (Das, 2018;Kweka & Sooi, 2020). Despite the existence of these recommended practices, food processing SMEs continue to face the aforementioned challenges and complexities.…”

Section: Introductionmentioning

confidence: 99%

The influence of sustainable supply chain management practices on financial sustainability of food processing SMEs

Mwenda

Israel

Mahuwi

2023

LBSJMR

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PurposeThe importance of sustainable supply chain management practices (SSCMPs) in the financial performance of firms is increasing significantly. However, the influence of SSCMPs on financial performance can vary across sectors and contexts. This research aims to provide a comprehensive understanding of the influence of SSCMPs on the financial sustainability of small and medium-sized enterprises (SMEs) in the food processing industry. For this, the influence of sustainable environment practices, customer and supplier relationships, social SCMPs and lean supply chain on the financial sustainability of food processing SMEs is studied.Design/methodology/approachA questionnaire survey was conducted to collect data from 56 food processing SMEs in Mbeya, Tanzania. The study employed a cross-sectional research design and a census approach to capture data from all eligible SMEs in the target population. Exploratory factor analysis (EFA) and multiple linear regression (MLR) were utilized as the primary data analysis techniques.FindingsThe findings of the study revealed a positive and significant influence of various SSCMPs on the financial sustainability of food processing SMEs. Specifically, sustainable environment management practices (β = 0.147, p = 0.000), supplier relationship management (SRM) (β = 0.715, p = 0.001), customer relationship management (CRM) (β = 0.894, p = 0.016), social SCMP (β = 0.901, p = 0.005) and lean supply chain practices (β = 0.675, p = 0.003) were all found to have a significant effect on the financial sustainability of the surveyed food processing SMEs.Practical implicationsThe study recommends the need to plan and integrate SSCMPs in firms’ operation processes, promote collaboration and networking and offer capacity-building initiatives that equip food processing SMEs with the necessary skills and knowledge to implement SSCMPs effectively. These will nurture effective adoption of SSCMP, leading to improved operations, environmental performance, financial sustainability and long-term viability of the sector.Originality/valueWhile SSCMPs have gained attention in the literature, the specific focus on its impact on financial sustainability in the context of food processing SMEs adds originality to this research. Industry stakeholders and policymakers can utilize the findings of this study to develop supportive policies and programs that promote sustainable supply chain practices and enhance financial sustainability in the food processing sector.

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Partnership for inclusive growth: Can linkages with large firms spur the growth of SMEs in Tanzania?

Abstract: This study has been prepared within the project Sustainable development solutions for Tanzania-strengthening research to achieve SDGs funded by the Ministry for Foreign Affairs of Finland.

Cited by 4 publications

References 14 publications

Utilization of non-financial business support services to aid development of Micro, Small and Medium Enterprises (MSMEs) in Tanzania

Utilization of non-financial business support services to aid development of Micro, Small and Medium Enterprises (MSMEs) in Tanzania

Joint Ventures for SMEs Competitiveness and Inclusive Growth: A Comparative Analysis of SMEs in Mbeya, Tanzania

The influence of sustainable supply chain management practices on financial sustainability of food processing SMEs

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