Browsing by Author "Emmanuel, Patrick"

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    Determinants of gearing in Tanzanian small and medium enterprises
    (University of Dar es Salaam, 2008) Emmanuel, Patrick
    This study was intended to examine the determinants of gearing for small and medium enterprises in Tanzania. The study ascertained the reasons for the choice of sources of capital, the justification for the mix of sources of capital as well as investigating the relationship between gearing and various characteristics of the firms. Accounting information for three years was collected from a sample of 30 firms in Dar Es Salaam using data collection schedule, data was analysed and presented in tables, graphs and narrations. Test statistics used ordinary least square regression. Results show that small businesses in Dar Es Salaam are dominated by retail and hospitality industries which depend largely on commercial banks and micro-finance institutions for external financing. Also it was found that age strongly influences positively on long-term and total debt. Hypothesis testing showed a significant relationship between age and long-term debt. Financing institutions will use the observed characteristics of entities in this study to adequately design products and services accordingly. Also it is useful to potential investors in understanding the financing dynamics of Tanzanian small businesses. Country research on the determinants of gearing in Tanzanian firms can be done regardless of their size including publicly listed companies. It may be interesting to observe financing dynamics of firms in a particular industry or sector.