Baisi, Mutahyoba Deusdedith2019-12-112020-01-082019-12-112020-01-082008Baisi, M.D (2008) The dynamics of SME financing decisions and performance in a developing economy: the case of Tanzania.Doctoral dissertation, University of Dar es Salaam, Dar es Salaam.http://localhost:8080/xmlui/handle/123456789/5940Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HG4027.7.B34)This study aimed at identifying the financing sources that can enhance performance and thus ensure survival for SMEs in Tanzania given the environment in which the are operating. It put into context some of the reasons that we think have undermined Tanzania firms endeavors' for survival and thereby denying them the opportunity to positively contributing towards the country's economic development. To do this the study analyzed financing decisions of the small and medium enterprises (SMEs) within a constrained environment and how this affects their performance. the study, like most entrepreneurship research, employed a survey technique for the exploratory framework to determine the environmental and firm performance. since the study also dwells on the cause-effect of the variables on performance, quantitative methods had to be applied and structural equation models were deemed to be most appropriate given the interrelationship nature of the variables in the model. A combination of cross sectional study and longitudinal analysis was performed using primary and secondary data collected from 401 SMEs in Dar es salaam, Arusha, Mwanza, Mbeya and Zanzibar. The results show that the financing sources utilized by SMEs in Tanzania do not address the effect that they have on the performance aspect which in turn may undermine their chances for survival. the study also confirmed what other studies (e.g. World Bank, 2000, ILO, 2001 and Chijoriga, 2000) have found that many SMs lack access to finance for starting, operating and expanding their business. the study recommends that in as much as the political, economic, environmental, social and technological variables affect the operations of the business environment in Tanzania and therefore their financing sources, there is a need to have a conducive environment that promotes the financial infrastructure that has the promotion.enSmall businessFinanceEconomic conditionsTanzaniaThesis