Statement of the Problem on effectiveness of traffic congestion solutions

This study will aim to identify the effectiveness of traffic congestion solutions for enhancing economic growth in Tanzania. Since 1990’s, the government has placed high priority to road construction of road network to various regions, noting that good transport infrastructure is vital to delivering other goods and services in the economy and serving the social requirements of the population.

It also recognized the importance of maintenance to preserve the quality of the infrastructure and ensure that it continues to deliver benefits to the economy over the long term.

Due to the improvement of infrastructure and development of cities in Tanzania, the problem of traffic congestion was inevitable to cities especially in Dar es salaam where some economic activities are performed late by failure of workers to attend working places early.

Mondschein et al. (2009) found that, Companies, organizations both public and private sectors as well as self-employed citizens every day loose part of their income due to traffic congestion problem a factor that weaken the country’s development speed.

Kavalec (2003) supply of road space is mainly determined by past investment decisions and current operations. Changes in the supply side of road space thus involve construction of new road space or reductions in existing road space. Changes in traffic operations are also considered to be supply side measures.

Another study conducted by Weisbrod (2001), congestion mitigation actions are part of the broad and complex land use and urban planning and general transport master planning process unique to each urban region. Furthermore, roadway congestion impacts not only road users but all urban inhabitants.

The success of the implementation of actions targeting congestion depends on many factors such as place, date, the economic and demographic situation and the type of congestion. In contrast, higher levels of congestion travelling delay (travel delay models) appear to be associated with decreasing job growth rates, but there is no evidence of a drag on regional productivity growth per worker (Lewis 2012).

Statement of the Problem on effectiveness of traffic congestion solutions. The policymakers are developing the appropriate strategic vision of the congestion management process in order to guide the selection of specific and necessarily varied congestion management measures for their city Orfield (2008).

Boarnet (1997) businesses point out that congestion costs them money, individuals feel that congestion robs them of time that could be spent more usefully or at least more enjoyably and city officials feel that congestion hinders their city’s economic vitality and growth prospects.

All of these are valid concerns and thus the problem formulation relating to congestion is typically “get rid of it”. A better approach might be to focus not on the negative (“get rid of congestion”) but on the positive.

Statement of the Problem on effectiveness of traffic congestion solutions. This researcher intends to bridge the knowledge gap left by past researcher’s studies so as to identify the effectiveness of traffic congestion solutions for enhancing economic growth in Tanzania.

effectiveness of traffic congestion solutions for enhancing economic growth in Tanzania.

Congestion can be defined as the situation when traffic is moving at speeds below the designed capacity of a roadway, it is the excess demand for road travel. (Downs, 2004).

Improving the social and economic wellbeing of the citizenry is the aim of every nation. One basic economic and social necessity that comes into focus when discussing economic and social development is transportation. Transportation is an activity of life processes and seeks to provide access to various activities that satisfy mobility needs of humankind (Kavalec 2003).

According to Weisbrod (2001), an effective transportation system is significantly important in sustaining economic growth in contemporary economies since it provides linkages between different parts of the country and the global world.

It links to work, deliver products to market, underpins logistics and supply chain, and support local and international trade. A good-established transportation system is not only key to national growth but also serves as catalyst for economic development of a country. Thus, there is a relationship between transportation and productivity (Mondschein et al. 2009).

Arasan (2012) elements of urban transportation include public transit (collective transport); non-motorized transport (pedestrians, cyclists) and freight.

Effective urban transport systems are essential to economic activity and quality of life.  Urban transportation opens up opportunities to access essential services as well as social activities. Business activities depend on urban transportation systems to ensure the mobility of its customers, employees and suppliers.

The urban transport services cover a range of important social and economic services such as leisure trips business journeys; commuting; shopping; trips to places of education and freight distribution. Boarnet (1997) effective urban transport fulfills the demand for accessibility within cities, further report that transportation infrastructure is one of the key factors that directly affect urban transportation effectiveness and capacity within the metropolis.

Transportation infrastructure mainly includes roads, parking lots, vehicles and transportation terminals. Urban traffic management system is also an important component which can properly control and guide the distribution of traffic flows on roads ( Haldenbilen 2006).

Nadiri (1998) postulates that investment in adequate transport infrastructure improves transport efficiency in terms of increased productivity and continue that transportation infrastructure involves good road network, adequate bus stops, parking areas with traffic signals. Nadiri (2001) assert that mass transit is prerequisite for ensuring efficient and effective transportation system in urban areas in terms of energy conservation reduced traffic congestion and environmental preservation.

They argue that effective mass transit system is underpinned by availability, accessibility, and reliability of buses. Effective traffic management and control system is key to ensuring effective transportation system in the urban areas. This involves management and control of road signals, road space, parking space and road users (Weisbrod 2001).

Boarnet (1997) on effectiveness of traffic congestion solutions for enhancing economic growth in Tanzania argues that the input of productivity is a state or national investment in transportation whilst the output is gross domestic product (GDP) growth.  An effective transportation system is therefore key in sustaining economic growth in the contemporary economies by its capacity to link people to job, deliver products to markets where there is demand, drives supply chain and logistics and enabling domestic and international trade.

Any city that is economically dynamic and vibrant will rarely be free from traffic congestion. Congestion has become an inevitable part of everyday life and that it is the city authorities that have to devise policies to help manage congestion on affordable basis to relief commuters of the difficulties imposed upon them by traffic congestion (Mondschein et al. 2009).

Arasan (2012) in effectiveness of traffic congestion solutions for enhancing economic growth in Tanzania  congestion is a function of a reduction in speeds, which is the direct cause loss of time and leads to increased vehicle operating costs, fuel consumption, and emissions of air pollutants and Green House Gases (GHGs).

In fact, people living in cities have come to accept traffic congestion as part of city dynamics and therefore have become used to getting along with it. They continue to argue that traffic congestion in cities is a symbol of a successful socio economic development – improved business activities, increase in employment and improved culture. These are factors that motivate firms to operate in cities to benefit from economic gains.

However, adequate infrastructure, effective traffic management and effective public transportation as key factors in place, will lead to effective transportation system. This will improve energy efficiency, effective logistics system and increase productivity at both individual and national level (Lewis 2012).

effectiveness of traffic congestion solutions for enhancing economic growth in Tanzania

In Tanzania like other countries, economic growth depends on transport sector it facilitates domestic and international trade, contributes to national integration, provides access to jobs, health, education and other essential facilities. and storage activities. Road transport is playing a bit role in development of any country’s economy (World Bank 2010).

Roads have only gained importance in the past 50 years as road transport became more affordable and became an important feature of a market economy. A high proportion of the infrastructure was not modernized over time due to limited resources to invest and a large amount of infrastructure and equipment is now beyond its economic life. The lack of attention to maintenance resulted in rapid deterioration in the infrastructure and this imposed high costs on the economy, a trend that continues to the present day (Lewis 2012).

Conclusions on challenges facing small and medium enterprises in acquisition of goods in Tanzania

This study established to assess on the challenges facing small and medium enterprises in acquisition of goods in Tanzania.

The study objectives were to examine influence of fund in acquisition of goods by small and medium enterprises, to determine knowledge and competency of small and medium businessmen; and to measure the contract management practices adopted by small and medium enterprises.  

The influence of fund in acquisition of goods by small and medium enterprises

The objective of the study was to examine influence of fund in acquisition of goods by small and medium enterprises, the factors that tested based on easily access to financial support, limited purchasing power, access to source from global market; and government taxes influence.

The study revealed that most of small and medium enterprises are limited in terms of having insufficient fund so as to acquire strategically, the access to financial support still the challenge to them as a factor they have limited purchasing power, this stress that they are ordering much as they can’t afford to manage stock. Small and medium enterprises at large percentage they cannot afford purchasing from global market/international, further regardless of having small profit the government still take large percent of taxes a factor that limit their growth.

Knowledge and competency of small and medium businessmen

The objective of the study was determining the knowledge and competency of small and medium businessmen, the study focused on adequate business trainings, E-procurement knowledge, knowledge on proper need assessment and business registration knowledge as the factors measuring their knowledge and competency.

The finding found that, the knowledge on e-procurement still insufficient to small businessmen’s, they lack knowledge on proper need assessment as still they purchase traditionally, further the researcher found that only few respondents were having the knowledge on importance’s of registering their business.

Contract management practices adopted by small and medium enterprises

The study found that the level on how the small and medium enterprises are able to practicing contract risk management, dispute resolution knowledge, contracting terms and conditions knowledge and traditional purchasing practice, where the study found that large number of small and medium enterprises they don’t know anything or they don’t practice risk management, they encounter disputes but do not understand how to solve them, still they suffer from clear terms and contractual conditions a factor that foster them to still purchasing traditionally continuously.

Conclusion of the study

The study found that, easily access to financial support enhancement to small and medium enterprises it is useful for strategic purchasing as increases the ability to keep inventories this may be a factor to influence their purchasing power, access to source from global market; and they will be able to pay all required government taxes influence.

The availability of adequate business trainings to small and medium enterprises increases the knowledge on e-procurement, proper need assessment and business registration knowledge this will increase more influence to them making sure that they are able to reach their strategic goals especially concerning with procurement functions.

The study found that, regardless of teaching professionals in dispute resolution matters, still the community especially small and medium enterprises face the problem of failing to solve purchasing disputes, to manage associated risks, to be aware with contracting terms and conditions as majority of tem lack that knowledge as still they purchase traditional.

Recommendations

Conclusions on challenges facing small and medium enterprises in acquisition of goods in Tanzania. Based on the findings of this study, the researcher recommended that;

1. The government and development stakeholders should ensure that small and medium enterprises are well trained on matters concerning with procurement functions so that to encourage them in having the knowledge with that matters.
2. The government should plan to charge small taxes from small and medium enterprises so as at the end they will be able to accumulate their profit so that they will be able to purchase strategically.

• Small and medium enterprises should receive useful education on how to purchase internationally so as they will be able to reduce unnecessary costs.

Data on Contract management practices adopted by small and medium enterprises. 

The objective aimed to measure the contract management practices adopted by small and medium enterprises.  The research objective measured four statements which include, practicing contract risk management, dispute resolution knowledge, contracting terms and conditions knowledge and traditional purchasing practice

 Practicing contract risk management

The statement aimed to know whether small and medium enterprises are practicing contract risk management. The study indicated the following level of respondent’s response on the statement.

Table Business registration knowledge

Source: Field Data, (2020)

The findings from table 4.13 show that, 68.5% of the total respondents disagreed that most of the businessmen are not practicing contract risk management strategies, while 18.3% of the respondents agreed with this statement.

This implies that whenever there is a loss as a consequence of uncertainty in their business they are not able to identify, analyze evaluate, monitor and review these risks. This was explained by Kibeshi, (2019) who explained five ways of managing procurement contract risk with contract management as putting it in writing, assigning risk, audit and compliance, holding supplies accountable and force majeure.

Dispute resolution knowledge

The statement aimed to know whether small and medium enterprises are having enough knowledge in dispute resolution or not. The study indicated the following level of respondent’s response on the statement.

Table  Dispute resolution knowledge

Source: Field Data, (2020)

The findings from table 4.14 show that, 67.9% of the total respondents disagreed that most of the businessmen are not aware on bet ways of resolving dispute in business, while 28.8% of the respondents agreed with this statement.

This implies that whenever there is a kind of disagreement between two business over the terms and agreements signed between two or more partners most of people engaging in business are not aware on the process of solving the conflict. These are supported by Davel, (2015) who put forward different ways of mediating conflicts in business such as litigation involving court help, arbitration, and mediation which help to maintain a healthy and effective business relationship after the dispute.

Contracting terms and conditions knowledge

Data on Contract management practices adopted by small and medium enterprises. The statement aimed to know whether small and medium enterprises are aware and using contracting terms and conditions in their business. The study indicated the following level of respondent’s response on the statement.

Table Contracting terms and conditions knowledge

Source: Field Data, (2020)

The findings from table 4.15 show that, 74.0% of the total respondents disagreed that most of small and medium enterprises are not aware and using contracting terms and conditions in purchasing and selling their products while 18.3% of the respondents agreed with this statement.

Data on Contract management practices adopted by small and medium enterprises

This implies that most of businessmen are not following on the terms such as legal status of parties, obligations of contractors, long-term and short term agreements, price and payments. Olusola, (2017) recommended to people engaging in business that following the terms and conditions of business will eliminate effects such as disputes, misunderstandings, losses within business and will provide a clear environment between business partners.

Traditional purchasing practice

Data on Contract management practices adopted by small and medium enterprises. The statement aimed to know whether small and medium enterprises using traditional purchasing practice for their business. The study indicated the following level of respondent’s response on the statement.

Table Traditional purchasing practice

Source: Field Data, (2020)

The findings from table 4.13 show that, 69.9% of the total respondents disagreed that most of the businessmen are not using traditional practice in conducting business, while 28.8% of the respondents agreed with this statement.

Data on Contract management practices adopted by small and medium enterprises. This implies that most people business people do not focus on negotiating with suppliers and ensuring that best price is being charged for certain products. These correlated with Robert, (2015) who explained key steps should be followed when purchasing products which involve request to purchase, supplier selection, purchase order, fulfilments, goods recipient and supplier payments.

Data on Knowledge and competency of small and medium businessmen

The research objective of this study was to determine knowledge and competency of small and medium businessmen.  For the purpose of this study, factors tested were grouped into four, these are; adequate business trainings, E-procurement knowledge, knowledge on proper need assessment and business registration knowledge. The findings from each statement are summarized below.

Adequate business trainings

The statement aimed to know whether businessmen are provided with business trainings or not. The study indicated the following level of respondent’s response on the statement.

Table Adequate business trainings

Source: Field Data, (2020)

The research findings indicate that 52.1% of total respondents disagreed that education and trainings regarding on business are not provided while 37% agreed with this statement. The findings imply the government, stakeholders, companies do not give majority of small and medium enterprises business and trading, and this would be possible if there were different seminars, workshops and even education through social media.

These agree with Brinders, (2013) who stated that, for any company, or individual who is not provided with trading and business education will not full accomplish his/ her goals. This is due to the fact that they are not aware on best and current trading techniques.

 E-procurement knowledge

Data on Knowledge and competency of small and medium businessmen. The statement aimed to know whether businessmen are aware with E-procurement knowledge or not. The study indicated the following level of respondent’s response on the statement.

Table Adequate business trainings

Source: Field Data, (2020)

The research findings table 4.10 indicate that 56.5% of total respondents disagreed that small and large enterprises businessmen are not aware with E-learning while 31.5% agreed with this statement.

The findings imply that business to business. Business to consumer, business to governments purchase and sales of supplies, work and services through the internet as well as other networking systems such as electronic data interchange and enterprise resource planning are not been implied.

This agrees with Olusola, (2017) who explained advantages of having E-procurement knowledge to business such as eliminating paperwork, rework and errors, E-procurement advantages extend to ensuring compliance with existing and established contracts.

Knowledge on proper need assessment

Data on Knowledge and competency of small and medium businessmen. The statement aimed to know whether knowledge on proper need assessment influence acquisition of goods by small and medium enterprises. The study indicated the following level of respondent’s response on the statement.

Table Knowledge on proper need assessment

Source: Field Data, (2020)

The findings from table 4.8 show that, 71.2% of the total respondents disagreed that knowledge on proper need assessment influence acquisition of goods by small and medium enterprises, while 26.0% of the respondents agreed with this statement.

Data on Knowledge and competency of small and medium businessmen. The findings imply that proper need assessment of the requirements has great impacts on contributing to success of the small and medium enterprises, unfortunately the findings show that it is only few enterprises who have the knowledge and skills on assessing the need.

This assures that most of them still they buy traditionally without assessing clearly what should be purchased and at what time, in order to ensure value for money they need to assess well the needs. The findings correspond with Scott, (2012) who found that in order for any business to succeed there should be a well assessing programme for the needs required to be purchased so as at the end value for money will be achieved.

Business registration knowledge

The statement aimed to know whether business registration knowledge and education is given to small and medium enterprises. The study indicated the following level of respondent’s response on the statement.

Table  Business registration knowledge

Source: Field Data, (2020)

The findings from table 4.12 show that, 54.8% of the total respondents disagreed that most of the businessmen are not aware on registering their business, while 39.7% of the respondents agreed with this statement.

Data on Knowledge and competency of small and medium businessmen. This implies that many people conduct unregistered business and they are not provided with knowledge on the importance of registering their services. On explaining the usefulness of providing registration knowledge of business Matthews, (2008) concluded that a registered business will be easily identified, will be easily conducted toward national and global level therefore recommending that people who conduct business at large must be educated on registering themselves.

Data of Influence of fund in acquisition of goods by small and medium enterprises.

The research objective of this study was to examine influence of fund in acquisition of goods by small and medium enterprises.  For the purpose of this study, factors tested were grouped into four, these are; easily access to financial support, limited purchasing power, access to source from global market and government taxes influence

Easily access to financial support

The statement aimed to get information from respondents on the easiest of accessing financial support. The following is the level of response from respondents

Table  Easily access to financial support

Source: Field Data, (2020)

The findings from table 4.5 show that, 68.5% of the total respondents disagreed with the statement that they don’t easily access to financial support, while 24.7% of the respondents disagreed and stating that they are easily getting financial support.

The study finding imply that small and medium enterprises businessmen are not supported by big companies, governments in their business, this means they stand alone in generating their own income.

These findings relate with Sounza, (2012) who explained on the importance of being supported that, the one who is financial supported by other people, governments, big companies will grow his/ her business quickly.

Limited purchasing power

The statement aimed to know whether small and medium enterprises have Limited purchasing power or not. The study indicated the following level of respondent’s response on the statement.

Table Limited purchasing power

Source: Field Data, (2020)

The findings from table 4.6 show that, 60.6% of the total respondents agreed with the statement that there is a limited purchasing power for small and medium enterprises, while 30.1% of the respondents disagreed with the statement.

The findings imply that there are several limitations such as financial constraints, support from large companies which hinder them from purchasing different goods, however they have a limitation due to the nature of their business which does not generate high income for more investments.

The findings agree with Gelderman, (2008) who explained challenges facing small businessmen’s indicating economic constraints being the major hindering factor, purchasing knowledge on different goods and lack of appropriate ambassadors in their business.

Access to source from global market

The statement aimed to know whether small and medium enterprises are having access to source from global market. The study indicated the following level of respondent’s response on the statement.

Table 4.7 Access to source from global market

Source: Field Data, (2020)

The findings from table 4.7 show that, 69.9% of the total respondents disagreed with the statement that they have no access to source from global market, while 27.4% of the respondents agreed with this statement.

The findings from respondents imply that they are not able to adjust their marketing strategies to meet conditions of other countries, this means that they are not full able to plan, create, position, and promote themselves in global markets.

Data of Influence of fund in acquisition of goods by small and medium enterprises

Data of Influence of fund in acquisition of goods by small and medium enterprises.. These relay with Michael, (2014) who explained on different strategies of certain business to be engaged in global market as having offices abroad for countries they market to, having proliferation of the internet, having completion among other business will also make requirements of certain business at international level.

Paying government taxes

The statement aimed to know whether paying government taxes influence acquisition of goods by small and medium enterprises. The study indicated the following level of respondent’s response on the statement

Table 4.8 Paying government taxes

Source: Field Data, (2020)

The findings from table 4.8 show that, 72.6% of the total respondents disagreed that paying government taxes limit acquisition of goods by small and medium enterprises, while 26.0% of the respondents agreed with this statement.

The findings positively show that there is fund reduction due to high government taxes payment on goods being exported and imported. The government requires payment of tax which is high for every services being provided, this causes these small and medium businessmen to earn less from their business.

Data of Influence of fund in acquisition of goods by small and medium enterprises.. These findings relay with those of Saha, (2015) who explained on the impact of high government taxes to business, explaining that there is a big loss of income when you import and export goods outside the country which delays the growth of business.

Response rate of the respondents on small and medium enterprises in Ilala Tanzania.

This chapter presents the researched results of the study based on the completed questionnaires from the respondents of small and medium enterprises in Ilala Tanzania.  The chapter has two sections, in which section one presented demographic characteristics of the respondents and section two presented results to the study objectives.

Response rate of the respondents

Table  Response rate of the respondents

Source: Research data (2020)

The response rate depended on the availability and willingness of respondents to participate in the study by accepting and filling the questionnaires administered so as to provide information for the study.

A sample of 100 respondents selected for this study. Table 4.1 shows that, out of the total 86 questionnaires the researcher administered, only 73 questionnaires were responded, dully filled and returned as it was used in analysis representing a response rate of 84.8% which allowed the researcher to continue with discussion of data, analysis and presentations.

Response rate of the respondents on small and medium enterprises in Ilala Tanzania

Demographic information

The demographic of this study included gender, level of education and work experience of respondents who involved in the study. The demographic information used in making generalizations about the total of respondents used in this study.

Gender of respondents

The results in the Table 4.2 below were generated using cross tabulation analysis in order to explore the distribution of gender of respondents. The reason why gender of respondents was recorded was to show that respondents came from both genders.

Gender of respondents

Source: Research data (2020)

From the above study in the table the study revealed that out of 67 respondents responded in this study were categorized in following, majority of 67.1% of the respondents were male and only 32.9% of the respondents were female. This is an indication that, male gender were highly involved in this study compared with female gender.

This is due to nature of activities performed at involved in selling and buying of goods. On other side one can say that the study consists of the views of both male and female therefore there was no selection bias in term of the gender of respondents.

Level of education

The finding in the Table 4.3 show the respondent’s categories by their level of education, the majority of the respondents had a Certificate and Diploma qualification.

Table Level of education

Source: Research data (2020)

The study revealed that, 46.6% were holding secondary education and below, 34.3% were holding certificate and diploma, 16.4% were holders of bachelor education, 2.7% were holding master degree and above. Since majority of them were educated people, it can be said that the study data collected from the people who are able to think and give objective or clear answers. And hence the results can be said valid since they came from educated people.

Work experience of respondents

The analysis continued to analyze the working experience of respondents in working in their enterprises. Therefore, respondents experience was explored using table results have been shown in the table 4.4 below,

Work Experience of respondents

Source: Research data (2020)

From these findings, majority of the 76.7% respondents were having working experience of more than one year and above, and rest only 23.3% of the respondents had worked for the period less than one year.

Response rate of the respondents on small and medium enterprises in Ilala Tanzania, This indicate that, respondents in this study were people who have worked for enough number of years and are well understanding of the activities and processes engaged with business.

This assured the researcher that, targeted population group was able to provide valid information basing on the researcher’s study in assessing the challenges facing small and medium enterprises in acquisition of goods in Tanzania.

knowledge and competency of small and medium businessmen

Joel, (2014) assessed on the business constraints that affect the potential growth of SMEs in Tanzania. The study aimed to measure the variables such as inadequate business training, insufficient capital, competition, ant-entrepreneurial culture, bureaucratic procedures in business registration, high taxes, technological barrier/backwardness, theft/cheating and lack of trust, poor infrastructure, corruption and lack of procurement knowledge that affect potential growth of SMEs were measured.

The study employed a quantitative approach to test hypothesis on the intensive literature review that conducted to find out the relationship between the variables. The findings found that lack of procurement knowledge, inadequate business training, insufficient capital and anti-entrepreneurial culture are significant constraints.

The study recommended that strategic training programmes need to be designed and implemented in order to provide SMEs with adequate entrepreneurial knowledge, skills and attitude so as to win the world of business competition.

Kibeshi, (2019) conducted a study that aimed at obtaining empirical evidence regarding the influence of strategic entrepreneurship on SMEs’ performance under the mediation of competitive advantage in the welding industry in Tanzania. knowledge and competency of small and medium businessmen. the study adopted learning orientation, strategic resource management and entrepreneurial orientation as strategic entrepreneurship components.

The study employed a survey method with cross-sectional design that used to collect data from 300 owners-managers of welding industry SMEs located in Dar es Salaam, Morogoro, and Mbeya urban centers. The study suggested that that learning orientation influences entrepreneurial orientation which influences strategic resource management to create competitive advantage that promotes SMEs’ performance.

Further, the findings implied that the it has been empirically demonstrated that knowledge is a unique resource that enables the acquisition of other resources and strategies. SMEs are urged to embrace learning orientation to create competitive advantage that leads to superior performance.

knowledge and competency of small and medium businessmen. The study verified that learning orientation, strategic resource management, and entrepreneurial orientation constructs adopted from entrepreneurship and strategic management literature are components of strategic entrepreneurship.

Influence of fund in acquisition of goods by small and medium enterprises.

Small businesses can no longer concentrate themselves to focus on strictly domestic acquisition in the competitive global business environment. For businesses across the globe, acquiring global is not a preference or a matter of choice, but rather a necessity. Failure to buy from global markets is a big mistake for modern businesses, whatever their size.

To be successful small and medium enterprises must consider themselves in procurement without borders. Going global can help an enterprise acquire goods timely, from right supplier, with right quality and at right cost, this will result to benefits that will power an enterprise to grow strategically.

Unfortunately, most of the existing SMEs in the business lack the scope on acquiring globally, they have limited fund and experience to outsource their requirements globally, as a factor many of them depends on acquisition domestically (Robert, 2015).

External finance for small and medium enterprises is essential for boosting start-up businesses and ongoing of the business especially when wants to acquire requirements that are costly. In addition, without external finance, small and medium enterprises will probably not be able to acquire quality goods that are found from international market, to expand the businesses and strike linkages of business with the large firms.

Further, access to finance is the most serious barrier to expansion of businesses and start-ups which have been mentioned a challenging factor limiting SME’s to the access to the financial support especially from bank loan that mostly contains strict conditions that are compelled to be difficult, has limited time to be returned with high interest rate and demands to put assets as a bond so as to receive loans (Dimitri, 2015).

Although acquisition of goods by small and medium enterprises still have limited scope for both who intend to acquire for manufacturing and for those acquiring for sale. Government policies and regulations over many countries still undermine favorable environment for acquisition of goods by the small enterprises (Saha, 2015). Taxation for international procurement, interest payments and complex shipment procedures are among hindrances facing acquisition by small and medium enterprise (Musau, 2015).

SME’s in Ghana do not also have the luxury of picking a financing scheme that will be appropriate for their businesses. The major type of financing open to them is debt financing from the financial institutions, which most often comes with a long list of requirements that most SME’s find them difficult to meet.

The other type that is Asset financing, aside the long list of criteria also requires operators of SME’s to provide 50% of the funds and the financing institution providing the other half to fund the purchases of the assets. This type of financing does not allow for growth of the SME’s sector since they are all short term in nature (Brinders, 2013).

Studies on influence of fund in acquisition of goods by small and medium enterprises.

In South Africa, Olusola, (2017) conducted a study on the measures to be undertaken by

SME’s in acquisition of goods, found that many SME’s have the culture of combining profits and acquire certain goods from any country worldwide. Some commented that shipment of goods over long distance demand high financial competency, for those who has limited capital remain sharing capital while other buy the home market goods by fearing high shipment cost, damage and wastage of time planning and managing acquisition process.

Anderson, (2011) in the journal of “business in developing countries views” SME’s in procurement of goods are weakened with the aspect of inadequate finance and lack of knowledge on how to obtain finance. Most of the business owners are not aware that the shares and business assets could be used as part of security against loans. Others do not have an idea what to do to qualify for facility from banks while others lack potential goods that suits their kind of business had a little effect on their procurement effectiveness.

Lack of application of information communication technology by the SME’s is a challenge to their success when acquiring goods. Most of the small medium enterprises acquire goods from the last hand market that obtained at higher cost, they face financial problems to acquire goods through e-procurement by application of ICT.

An enterprise that is able to acquire goods through e-procurement, it is able to achieve whole life cost of goods (value for money) that indicate better quality of the purchased goods. through the application of ICT by SME’s, the use of barcodes and radio-frequency identification (RFID) will help to reject defective goods, to know the exact market price of the product and able to track the manufacturing date and expiry date of the product. The knowledge on acquisition of goods to SME’s still a challenge (Davel, 2015).