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Factors Affecting the Growth of Family-Owned Businesses in Ilala District, Tanzania

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dc.contributor.author Ngumbullu, Melinda P.
dc.date.accessioned 2019-03-12T06:19:22Z
dc.date.available 2019-03-12T06:19:22Z
dc.date.issued 2018
dc.identifier.uri http://erepo.usiu.ac.ke/11732/4454
dc.description A Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Master of Business Administration (MBA) en_US
dc.description.abstract The main purpose of this study was to determine the factors affecting the growth of family-owned businesses in Tanzania. The study was guided by three research questions: How does access to financial capital affect the growth of family-owned businesses? How do government regulations affect the growth of family-owned businesses? How do entrepreneurial competencies affect the growth of family-owned businesses? A descriptive survey research design was adopted by the study. The target population of the study consisted of 5,188 owner managers of family-owned businesses operating within the Ilala District, Tanzania. A sample size of 408 Family-owned Businesses was selected from the total population using a stratified sampling technique. The study used a structured questionnaire to collect primary data. The study used descriptive and inferential statistics to analyze the data. The descriptive statistical analysis included mean, standard deviation and frequency distribution while the inferential statistical techniques used were Pearson correlation, One Way Analysis of Variance (ANOVA) and linear regression analysis. The study used the Statistical Package for Social Studies (SPSS) as a data analysis tool. The findings and results were presented using tables and figures. The findings on the effect of financial capital on the growth of family-owned businesses revealed that there was a statistically significant strong positive correlation between access to financial capital and the growth of family-owned business at r (320) = .78, p < .05. One Way ANOVA findings indicated that there was a statistically significant effect on the growth of family-owned businesses by gender at F(1, 318) = 7.21, p< .05, the nature of business F(2, 317) = 5.37, p< .05 and the years of business operation F(1, 318) = 6.47, p< .05. Linear regression analysis findings revealed that, 83.2% of the variability in the growth of family-owned businesses was explained by access to financial capital, which significantly predicted the growth of family-owned businesses at (R2= .832, F(1, 318) = 15.14, p < .05; β = 0.256, p< .05). In relation to the effect of government regulations on the growth of family-owned businesses, findings indicated that government regulations were strongly correlated to the growth of family-owned businesses at r(320) = .76, p < .05. One way ANOVA test showed that there was a statistically significant effect on the growth of family-owned businesses by gender at F(1, 318) = 6.84, p< .05 and the nature of business F(2, 316) = 11.23, p< .05. Linear regression analysis findings showed that, 61.4% of the variability in the growth of family-owned businesses was explained by government regulations, which significantly affected the growth of family-owned businesses at (R2= .614, F(1, 318) = 7.54, p < .05; β = .423, p < .05). The findings on the effect of entrepreneurial competencies revealed that there was a statistically significant strong positive correlation between entrepreneurial competencies and the growth of family-owned business at r (320) = .71, p < .05. One Way ANOVA test results showed that there was a statistically significant effect on the growth of family-owned businesses by gender at F(1, 318) = 13.25, p< .05; nature of the business F(2, 316) = 12.51, p< .05 and years of business operation F(1, 318) = 6.13, p< .05. Linear regression analysis findings indicated that, 86.1% of the variability in the growth of family-owned businesses was explained by entrepreneurial competencies, which statistically significantly predicted the growth of family-owned businesses at (R2= .861, F(1, 318) = 3.90, p < .05; β = .455, p < .05). In conclusion, access to financial capital greatly influenced the growth of family-owned businesses in terms of sales turnover, profit margin, and market share when operating the business. Government regulations significantly affected the growth of family-owned businesses in terms of profit margin, market share, asset value and number of employees. Entrepreneurial competencies significantly influenced the growth of family-owned businesses in terms of sales turnover, asset value, profit margins, number of employees and market share. The study recommends that family-owned businesses should provide business training on risk management and sourcing of funds in order to enhance the growth of the businesses. The study also recommends that there is a need for the government to create regulations that ease the cost of doing business in Tanzania, by reducing time required for registration and licensing processes. Organizational development programs should also be encouraged in family-owned businesses in order to advance entrepreneurial competencies and promote faster business growth. Further studies can also be conducted in different sectors of the economy to assess and compare the findings. en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Growth en_US
dc.subject Family-Owned Businesses en_US
dc.subject Ilala District en_US
dc.subject Tanzania en_US
dc.title Factors Affecting the Growth of Family-Owned Businesses in Ilala District, Tanzania en_US
dc.type Thesis en_US


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