Improved urban road network and small and medium enterprises’ financial performance: Evidence from Tanzania
DOI:
https://doi.org/10.20525/ijrbs.v13i5.3551Keywords:
Urban, Road network, financial performance, SMEs, TanzaniaAbstract
This study assessed the impact of improved urban road network on financial performance of Small and Medium Enterprises focusing in Dodoma, Tanzania. The study employed a cross sectional research design where by a sample of 89 SMEs from the selected three wards in Dodoma city was used to draw the conclusion. Qualitative data collected through questionnaires were analyzed using content analysis while quantitative data analyzed using descriptive statistics and multiple regression analysis. The key findings from the study include: i) accessible roads to customers toward SME were having positive influence to SMEs performance ii) market accessibility by customers and consumers was the key factor in improving SMEs financial performance in Dodoma city and lastly, an effective time management and improved transportation of goods and services were positive related to the amount of sales revenue generated by SMEs. The conclusion is drawn to improve the urban road networks as among of the key factors in improving the performance of SMEs in Dodoma city by increasing sales and profit. It is therefore recommended that, the government and other stakeholders in the construction sector should continue to improve urban road networks and start offering basic business and financial management skills which would enable SMEs owners to make informed investment decisions as well as enhance their entrepreneurial skills which will facilitate in recognizing and exploiting the available business opportunities.
Downloads
References
Ahmad, N. N. (2020). The effectiveness of additional PRIHATIN SME economic stimulus package (PRIHATIN SME +) in Malaysia post-COVID-19 outbreak: A conceptual paper. Global Business, 12(4), 754–764. http://gbmrjournal.com/pdf/v12n4/V12N4- 73.pdf.
Aikaeli, J. (2017). Improving Competitiveness for SMEs to harness available Trade and Investment Opportunities: the case of Tanzania.
Akinyele, S. T., Akinyele, F. E., &Ajagunna, O. D. (2016). Infrastructural development as a predictor to small and medium enterprises performance in Nigeria. Kuwait Chapter of Arabian Journal of Business and Management Review, 6(3), 1-14. DOI: https://doi.org/10.12816/0033237
Al Khasawneh, M., Abuhashesh, M., Ahmad, A., Masa’deh, R., & Alshurideh, M. T. (2021). Customers online engagement with social media Influencers’ content related to COVID 19. Studies in Systems, Decision and Control, 334, 385–404. https://doi.org/ 10.1007/978-3-030-67151-8_22. DOI: https://doi.org/10.1007/978-3-030-67151-8_22
Arsawan, I. W. E., Koval, V., Rajiani, I., Rustiarini, N. W., Supartha, W. G., & Suryantini, N. P. S. (2022). Leveraging knowledge sharing and innovation culture into SMEs sustainable competitive advantage. International Journal of Productivity and Performance Management, 71(2), 405–428. https://doi.org/10. 1108/IJPPM-04-2020-0192. DOI: https://doi.org/10.1108/IJPPM-04-2020-0192
Deluka-Tibljaš, A., Karleuša, B., &Dragi?evi? (2013). “Review of Multicriteria-Analysis Methods Application in Decision Maki about Transport Infrastructure. Gra?evinar, 65(7), 619-63. DOI: https://doi.org/10.14256/JCE.850.2013
Ekeocha, D.O., Ogbuabor,J ·, and Orji, A. (2021). Public infrastructural development and economic performance in Africa: a new evidence from panel data analysis. Economic Change and Restructuring (2022) 55:931–950 https://doi.org/10.1007/s10644-021-09334-8. DOI: https://doi.org/10.1007/s10644-021-09334-8
Gollin, D. (2008). Nobody?s business but my own: Self-employment and small enterprise in economic development. Journal of Monetary Economics, 55(2), 219-233. DOI: https://doi.org/10.1016/j.jmoneco.2007.11.003
Hanak,T., Marovi?, I., & Pavlovi?, S. (2014). “Preliminary Identification of Residential Environment Assessment Indicators for Sustainable Modelling of Urban Areas”. International Journal for Engineering Modelling, 27(1-2), 61-68.
Horvat T, Bendix H, Bobek V, Skoko, H (2020) Impacts of investments in infrastructure projects on emerging markets’ growth: the case of East African countries. Econ Res-Ekonomska Istraživanja. https:// doi. org/ 10. 1080/ 13316 77X. 2020. 18607 99
Hossain, M. S., Kannan, S. N., & Raman Nair, S. K. K. (2021). Factors influencing sustainable competitive advantage in the hospitality industry. Journal of Quality Assurance in Hospitality & Tourism, 22(6), 679–710. https://doi.org/10.1080/1528008X.2020.1837049. DOI: https://doi.org/10.1080/1528008X.2020.1837049
Jamal, F., Zhijun, Y., Khan, U.U., Zubair,M., Ahmad, S., Sultan, F. and Ullah, I. (2024). The Impact of Finance, Infrastructure and Training on the Performance of SMEs in Pakistan. South Asian Journal of Social Studies and Economics, Vol 21(4). 95-103. https:/doi.org/10.9734/SAJSSE/2024/v21i4803. DOI: https://doi.org/10.9734/sajsse/2024/v21i4803
Japan International Cooperation Agency (JICA) (2019). Data Collection Survey on Small and Medium Enterprise Finance in the United Republic of Tanzania. Final Report
Kamunge, M.S., Njeru, A., &Tirimba, O. I (2014). Factors Affecting the Performance of Small and Micro Enterprises in Limuru Town Market of Kiambu County, Kenya. International Journal of Scientific and Research Publications, 4(12), 1-20.
Kamunyori, S. (2007). A growing space for dialogue: The case of street vending in Nairobi?s central business district. Doctoral dissertation. Institute of Technology.
Kazimoto, P. (2014). Assessment of challenges facing small and medium enterprises towards international marketing standards: A case study of Arusha Region Tanzania.
Khanani, R.S., &Adugbila, E.J., Martinez, J.A., & Pfeffer,K. (2020). The Impact of Road Infrastructure Development Projects on Local Communities in Peri-Urban Areas: the Case of Kisumu, Kenya and Accra, Ghana. International Journal of Community Well- Being. Online accessed on 22nd August 2021 from https://doi.org/10.1007/s42413-020- 00077-4. DOI: https://doi.org/10.1007/s42413-020-00077-4
Kumburu, N. P., Kessy, J. F., &Mbwambo, S. J. (2019). Profitability of SIDO supported small scale furniture industries against imported furniture in Dar-Es-Salaam and Arusha regions, Tanzania. East African Journal of Social and Applied Sciences, 1(2), 33-48.
Lin B, Chen Y (2020) Will land transport infrastructure affect the energy and carbon dioxide emissions performance of China’s manufacturing industry? Appl Energy 260:114266. https:// doi. org/ 10. 1016/j. apene rgy. 2019. 114266 DOI: https://doi.org/10.1016/j.apenergy.2019.114266
Lu, I. J., Sue, J.L., and Charles, L. (2009). The Forecast of Motor Vehicle, Energy Demand and CO2 Emission from Taiwan? Road Transportation Sector. Journal of Energy policy, (37), 2952-2961. DOI: https://doi.org/10.1016/j.enpol.2009.03.039
Luz JAA, dos Reis JGM, de Araújo Leite F, de Araújo KWF, & Moritz, G. (2016). Effects of Transport Infrastructure in the Economic Development. Advances in Production Management Systems. Initiatives for a Sustainable World, 633–640, https:// doi. org/ 10. 1007/ 978-3- 319- 51133-7_ 75 DOI: https://doi.org/10.1007/978-3-319-51133-7_75
Marovi?, I. (2013). Decision Support System in Real Estate Value Management, [Ph.D. Thesis], University of Zagreb, Faculty of Civil Engineering, Zagreb, Croatia.
Marovi?, I., Androji? , I., Jajac,N., Hanák, T (2018). : Research Article on Urban Road Infrastructure Maintenance Planning with Application of Neural Networks. Hindawi Complexity Volume 2018, Article ID 5160417, 10 pages https://doi.org/10.1155/2018/5160417 DOI: https://doi.org/10.1155/2018/5160417
Mashenene, R. G., &Rumanyika, J. (2014). Business constraints and potential growth of small and medium enterprises in Tanzania: A review. European Journal of Business and Management, 6(32), 72–79.
Mashenene, R.G., &Kumburu, N.P. (2020). Performance of Small Businesses in Tanzania: Human Resources-Based View. Global Business Review, 1-15: HTTPS:/DO?.ORG/10.1177/0972150920927358. DOI: https://doi.org/10.1177/0972150920927358
Mhede, E. P. (2012). The growth of micro and small, cluster-based furniture: Manufacturing firms and their implications for poverty reduction in Tanzania (Research Report 12/1). REPOA.
Mitullah, W. V. (2015). Street Vending in African Cities: A Synthesis of Empirical Findings from Kenya, Cote D?Ivoire. and South Africa.
Mnenwa, R., &Maliti, E. (2008). The role of small businesses in poverty alleviation: The case of dares salaam, Tanzania (Research Report 08.2). REPOA.
Muchai, K. A. (2016). Management Practices of Small and Medium Enterprises and the Challenges in Socio-Economic Sphere: A Case Study of Smes in Nairobi City. University of Nairobi.
Mugo, A. N., Kahuthia, J. & Kinyua, G. (2019). Effects of infrastructure on growth of small and medium enterprises in Kenya: A case of clothing and textile businesses in Nairobi Central Business District. International Academic Journal of Human Resource and Business Administration, 3(6), 133-14
Mwombokile, F. (2023). Road Infrastructure Resilience and SMEs Sales Performance in Tanzania: Evidence from the Government Departments Shift to Dodoma Region. International Journal of Social Science Research and Review, 6(9). Pages: 237-250, http://ijssrr.com editor@ijssrr.com.
Nkonoki, E. (2010). What are the factors limiting the success and/or growth of small businesses in Tanzania? An empirical study on small business growth. Arcada University of Applied Sciences.
Nkwabi, J.M., Mboya, L.B. (2019). A Review of Factors Affecting the Growth of Small and MediumEnterprises (SMEs) in Tanzania. European Journal of Business and Management, 11(33), 1-8.
Obokoh, L.O., Goldman, G. (2016). „Infrastructure Deficiency and the Performance of Small- and Medium-sized Enterprises in Nigeria?s Liberalised Economy?, ActaCommercii 16(1), a339. http://dx.doi. org/10.4102/ac.v16i1.339. DOI: https://doi.org/10.4102/ac.v16i1.339
Pereira AM, Pereira RM (2020) Infrastructure investment in Portugal and the traded/non-traded indus try mix. J Infrastruct Policy Dev 4(1):1–26. DOI: https://doi.org/10.24294/jipd.v4i1.1124
Pettersen, I, (2017). Exploring Open Innovation Collaboration between SMEs and Larger customers. Baltic Journal of Management. Emerald .com
She, Q., Yu, Y., & Wu, K. (2020). Is “born global” a viable market entry mode for the internationalization of SMEs? Evidence from China before COVID-19. Emerging Markets Finance and Trade, 56(15), 3599–3612. https:// doi.org/10.1080/1540496X.2020.1854720. DOI: https://doi.org/10.1080/1540496X.2020.1854720
Starkey, P. and Hine, J., TRL (2020). Rural transport services: operational characteristics and options for improvements. Phase 3 Report. Interactions: Maintenance and Provision of Access for Rural Transport Services (IMPARTS) Project. ReCAP GEN2136A. London: ReCAP for DFID.
The World Road Association [PIARC] (2014). “The Importance of Road Maintenance: The World Road Association (PIARC). Accessed on 17th March 2021 from http://www.erf.be/images/Importance_ of_road_maintenance.pdf.
United Nation Commission of Trade and Development (UNCTAD). (2005). Growing micro and small enterprises in LDCs: The „missing middle? in LDCs: Why micro and small enterprises are not growing. https://unctad.org/en/Docs/poitetebd5.en.pdf
Wang J, Ren Y, Shu T, Shen L, Liao X, Yang N, He H (2020b). Economic perspective-based analysis on urban infrastructures carrying capacity—a China study. Environ Impact Assess Rev 83:106381. https://doi.org/10.1016/j.eiar.2020.106381.
Wang J, Ren Y, Shu T, Shen L, Liao X, Yang N, He H (2020b) Economic perspective-based analysis on urban infrastructures carrying capacity—a China study. Environ Impact Assess Rev 83:106381. h DOI: https://doi.org/10.1016/j.eiar.2020.106381
World Bank. (2020). Doing business 2019. The World Bank.
Yahaya, H.D., & Nadarajah, G. (2023). Determining key factors influencing SMEs’ performance: A systematic literature review and experts’ verification. Cogent Business & Management, 10:3, 2251195, https:/doi.org/10.1080/23311975.2023.2251195. DOI: https://doi.org/10.1080/23311975.2023.2251195
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Petro Maziku, Ibrahim Fungo
This work is licensed under a Creative Commons Attribution 4.0 International License.
For all articles published in IJRBS, copyright is retained by the authors. Articles are licensed under an open access Creative Commons CC BY 4.0 license, meaning that anyone may download and read the paper for free. In addition, the article may be reused and quoted provided that the original published version is cited. These conditions allow for maximum use and exposure of the work, while ensuring that the authors receive proper credit.
