Despite the importance of financial information on access to credit, growth and sustainability, Micro and Small Businesses (MSBs) in Tanzania hardly keep records. This descriptive study investigated financial record keeping practices in MSBs in Iringa and Kinondoni Municipalities employing a sample of 245 owner managers. Data were collected using a questionnaire. Findings indicated that financial record keeping in MSBs remains a big challenge. Some MSBs occasionally kept records while others did not keep records at all. The most kept records were inventories and purchases rather than sales. Reasons for not keeping records included limited knowledge on the value of record keeping, limited skills, shortage of time, shortage of funds to hire skilled personnel and shortage of facilities such as tables/desks and cabinets to store records. The study established a significant association between record keeping and the performance of MSBs. Yet there were mixed perceptions of MSB owner managers regarding the value of record keeping. The study recommends policy action to enforce financial record keeping and strengthen Business Development Services (BDS) provision. Further studies may consider an experimental design with MSBs in the treatment arm supported to keep financial records, then measure impact over a certain period.
AdamuS. (2020). Impact of Internal Control System on accounting records keeping in Taraba State health establishments. International Journal of Advanced Research in Accounting, Economics and Business Perspectives, 4(1), 257–270.
2.
AdeotiJ. O., & AsabiM. O. (2018). Effect of record keeping practices on the performance of micro enterprises in Lagos State, Nigeria. Amity Journal of Corporate Governance, 3(2), 1–10.
3.
BeyeneA. (2004). Enhancing the competitiveness and productivity of small and medium scale enterprises (SMEs) in Africa: An analysis of different roles of national governments through improved services. Africa Development, 27(3), 130–156.
4.
BlackwoodT. (1998). Accounting for business (2nd ed.). Business Education Publishers.
5.
ChoudhuryM., & GoswamiC. (2017). MSME financing gaps: Research review 1995–2017. Small Enterprises Development, 44(3), 1–26. https://doi.org/10.1177/0970846420170301
6.
CreswellJ. W. (2014). Research design: Quantitative, qualitative and mixed methods approach (4th ed.). SAGE Publications.
7.
DavidssonP. (1989). Continued entrepreneurship and small firm growth[PhD Dissertation, Stockholm School of Economics, The Economic Research Institute].
8.
DekaS. M., & DekaD. G. (2015). Management practices in rural micro enterprises of Assam. SEDME, 42(4), 1–15. https://doi.org/10.1177/0970846420150401
9.
GhasiaB. A., WamukoyaJ., & OtikeJ. (2017). Managing business records in small and medium enterprises at Vigaeni Ward in Mtware-Mikindani Municipality, Tanzania. International Journal of Management Research & Review, 7(10), 974–986.
10.
HairJ. F., BlackW. C., BabieJ. B., AndersonR. E., & TathamR. L. (2006). Multivariate data analysis (6th ed.). Pearson Education.
11.
HendriksenE. S. (1965). Accounting theory. Richard D. Irwin Publishing.
12.
JokipiiA. (2006). The structure and effectiveness of internal control: A contingency approach. [Doctoral Dissertation, Universitas Wasaensis]. https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.162.538&rep=rep1&type=pdf
13.
JokipiiA. (2010). Determinants and consequences of internal control in firms: A contingency theory based analysis. Journal of Management and Governance, 14(2), 115–144. https://doi.org/10.1007/s10997-009-9085-x
14.
KhadimM. E. H., & ChoudhuryS. R. D. (2019). Impact of record keeping on the growth of micro-and small-scale enterprises: An analytical study. SEDME, 46(2), 70–81. https://doi.org/10.1177/0970846419852513
15.
MpalanziC. (2017). Business formalisation in Tanzania: Building a stronger small business sector through formalisation. Financial Sector Deepening Trust (FSDT). https://www.fsdt.or.tz/wp-content/uploads/2018/11/FSDT-Focus-Note-Business-Formalization-in-Tanzania.pdf
16.
MpogoleH. (2006). The role of community banks in small businesses formation and development: The case of Mufindi District—Iringa [MBA Dissertation, University of Dar Es Salaam].
17.
MropeG., & MheschelaJ. (2015). Micro and small enterprises challenges in managing loan at Mbeya, Tanzania. International Journal of Business and Management, 3(10), 622–628.
18.
AyandaMukaila A., & LarabaSidikat A. (2011). Small and medium scale enterprises as a survival strategy for employment generation in Nigeria. Journal of Sustainable Development, 4(1). https://doi.org/10.5539/jsd.v4n1p200
19.
MutakyahwaR. G. (2020). Addressing the informal economy: A review of Tanzania’s policy approach. In MaliyamkonoT. L., & MasonH. L. (Eds.), TEMA and SIYAYA, The game changer: President Magufuli’s first term in office (pp. 101–135). Dar es Salaam and Lynnwood.
20.
MyekoZ., & MadikaneV. (2019). Challenges of record keeping for Engcobo small, micro and medium businesses, South Africa. Global Journal of Management and Business Research (B), 19(2), 1–11.
21.
PerryS. C. (2001). The relationship between written business plans and the failure of small businesses in the U. S. Journal. Journal of Small Business Management, 39(3), 201–208. https://doi.org/10.1111/1540-627X.00019
22.
SangaD., KasubiJ., & KisumbeL. (2014). A challenge of business records keeping for Tanzania small and Medium Enterprises (SMEs): A case of Madukani ward-Dodoma region. European Journal of Business and Management, 6(38), 82–86.
23.
SawlaniF. (2005). Entrepreneurship and small/medium-sized enterprises development in Sierra Leone: Learning from UK experience. IAABD.
24.
SnedecorG. W., & CochranW. G. (1989). Statistical methods (8th ed.). Iowa State University Press.
25.
StoreyD. (1994). Understanding the small business sector. Routledge.
26.
URT. (2003). Tanzanian small and medium enterprise development policy. Ministry of Trade and Industry.
27.
URT. (2014). Basic demographic and socio-economic profile: Key findings of 2012 population and housing census. National Bureau of Statistics (NBS).
28.
URT. (2012a). National baseline survey report for micro, small, and Medium Enterprises in Tanzania. Minister for Industry and Trade.
29.
URT. (2012b). The 2012 population and housing census (PHC). National Bureau of Statistics.
30.
URT. (2021). National Five Year Development Plan 2021/22-2025/26 (FYDP III): Realising Competitiveness and Industrialisation for Human Development. Ministry of Finance and Planning, United Republic of Tanzania.
31.
WaariD. N., AngaineF., KamakuD. K., & MathengeE. K. (2016). Financing small enterprises: Is record keeping a challenge? A survey of micro and small enterprises in Meru County-Kenya. Journal of Business and Management, 18(2), 62–66.
32.
WangH. (2012). The decision usefulness of fair value accounting in the debt market. Being a thesis submitted to Post. Graduate School, University of Concordia.
