Conclusions on 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.
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;
- 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.
- 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.