Browsing by Author "Hokororo, Silver"

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Financial management practices and performance of agricultural small and medium enterprises in Tanzania
(Elsevier Ltd., 2023-03-29) Mang'ana, Kulwa; Ndyetabula, Daniel; Hokororo, Silver
Small and Medium-Sized Enterprises in agriculture sector, contribute significantly to economic change in developing countries by addressing a wide range of unemployment, nutrition, income poverty, and food security issues. Despite their critical role and contribution to economic growth, they have received a great deal of criticism for their poor performance. Most of the challenges confronting these agro-enterprises, however, are the result of poor financial management practices. Previous research studies have indicated generally that financial management practices have an impact on the performance and success for small businesses, yet scholarly research shows there is limited empirical evidence on which financial management practices have an influence on the agri-SMEs performance, which is why it was critical to examine this phenomenon. A total of 427 SMEs in Tanzania's agricultural sector were surveyed and examined. The developed hypotheses were evaluated using Structural Equation Modeling (SEM) with Smart PLS 4 to determine the effect of implementing financial management practices on the performance of agri-SME. Findings from the empirical study shows that working capital management practices and financing management practices have significant positive influence on both financial and organizational performance of the surveyed agro enterprises, while the accounting, financial reporting practices and capital budgeting management practices have insignificant influence on the performance agri-SMEs performance. Based on the findings, the study recommends that the government and regulatory authorities such as the Small Industries Development Organization (SIDO) must continue to emphasize their policies for improved agri-SME performance and sustainability while directly or indirectly encourage managers (venture owners) to consider working capital and financing practices as core to their financial management strategies.
An Investigation of the Extent of Implementation of the Financial Management Practices of Agri-SMEs in developing countries: Evidence from Tanzania
(Elsevier, 2023-08-31) Mang’ana, Kulwa; Hokororo, Silver; Ndyetabula, Daniel
The success of agricultural Small and Medium Enterprises (agri-SMEs), among other factors, heavily relies on their ability to manage finances effectively. This study examined the extent to which agricultural SMEs in Tanzania practice financial management activities. The study employed a cross-sectional survey design to collect data from 427 agri-SMEs in three regions of Tanzania. Descriptive statistics and higher-order reflective-formative Structural Equation Model (SEM) were employed for data analysis. The findings indicated moderate adoption of financial management practices. Specifically, agri-SMEs were found to frequently engage in working capital management practices, such as maintaining sufficient cash flows and records for payables and receivables. However, financial reporting is less frequently practiced, with sporadic financial statements preparation and financial analysis. The findings indicate further that other financial management practices such as financial accounting, capital budgeting and financing management were moderately and infrequently implemented, with external financing sources being utilized less frequently compared to internal financing sources. The path analysis indicates that all lower-order constructs significantly contributed to the higher-order financial man- agement practice construct with capital budgeting demonstrating the strongest impact. The findings highlight the need for improving financial reporting, analysis, and external financing usage in Tanzanian agri-SMEs. These findings offer valuable insights agri-SMEs in developing countries to appropriately strategize on implementation of financial management practices that will lead to improved access to finance and high performance.