Browsing by Author "Munisi, Agnes"

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    Financing And Investment Practice in Small and Medium-Sized Tourism Enterprises: a case study of Arusha Tour Operators.
    (University of Dar es Salaam, 2002) Munisi, Agnes
    Lack of sufficient funds has been a problem to Small and Medium Enterprises (SMEs). The study examined the sources of funds available for Small and Medium-sized Tourism Enterprises (SMTEs) specifically, Tour Operators allocation of funds and the problems encountered. In order to meet the objective, research work employed both primary and secondary data using questionnaires and interview. Major findings on the available sources for establishment were own funds from owner’s savings and borrowings from relatives and friends. Others were credit from financial institutions and share with foreigners. For daily operation, apart from their own funds SMTEs use retained earning of the company. Other sources are shareholder equity; share with foreigners and funds from leasing firms. None obtains funds from the government. Lack of sufficient funds in one of the financing problems they encounter while other problems are high taxation system, delay of money transfer from abroad and low utilization of resources due to seasonal nature of their business. SMTEs make investment by investing in fixed assets such as motor vehicles and buildings, and in information and technology and few in financial assets like securities and bank deposit. Return on investment, availability of market, project analysis and economic stability are factors influencing their investment decision. Few of them investment problems like unpredictability of the future market and high tax rates. It is recommended that SMTEs should use credit to finance their operation because of tax shields (advantage) and conduct training to staff especially the finance department. Also TATO should establish a data bank for providing sufficient information about financing sources and investment practices taking places in SMTEs.