Influence of management practices on the performance of smes in Tanzania: the case of Ilala district in Dar es Salaam

This study examines the influence of management practices on SMEs performances. More specifically the study determined the extent to which strategic planning, record keeping and business separation from ownerships practices influence performance of SMEs in Tanzania. The study employed a sample of 107 which was selected randomly from Ilala District. It involved respondents who operated businesses at Kariakoo market area in Dar es Salaam. Structured questionnaire was used as the main instrument for data collection. SPSS version 19 was used to summarize data using descriptive analysis and Chi Square test. The finding of the study indicates that, record keeping was the most influencing factor on the performance of SMEs followed by strategic planning. Moreover, the study found out that some practices in the separation of businesses from ownership were considered more important such as owners’ tendency of dominating decision while decision making on expenses managements being given less importance. The study recommends more capacity building on business separation practices, its importance and how it can affect the business at large. However, the uses of record keeping should be elaborated more since it is more than ascertain business profit.