Consumption and saving pattern of micro small and medium enterprises operators: A case of Ubungo bus terminal in Dar es Salaam

This study examines consumption and saving pattern of Micro, Small and Medium Enterprises (MSMEs). The study objectives are to assess the proportion of consumption and the proportion of saving of MSMEs operators; relationship between socio-economic characteristics, saving and consumption patterns of MSMEs and identifying MSMEs major constraints in order to evaluate the capacity of MS.MEs to eradicate poverty by increasing the proportion of their income invested which is key if they are to grow and be sustainable. The study uses questionnaire survey methodology to collect primary data and uses a model of consumption in which income determines consumption. The study employed the Ordinary Least Squares (OLS) method to estimate the econometric model. The main empirical findings of the study show that the proportion of consumption is high compared to the proportion of saving. The study results show relatively positive relationship between income, consumption, saving and size of enterprise. MSMEs social characteristics do not relate to MSMEs consumption and saving patterns. The major MSMEs constraints are lack of capital, lack of security and lack of premises to conduct business, Vll ABSTRACT The study recommends a need for taking measures to ensure that MSMEs become sustainable in Tanzania as they lack capacity to sustain their growth prospects. Some of these measures include creation and nurturing of MSMEs entrepreneurship trainin.g, improvement of financial systems, establishing well functioning marketing systems for MSMEs to utilize both local and international opportunities and put in place a suitable legal framework for MSMEs to flourish.

Level dc:type.qualificationlevel

masters

Grantor dc:publisher.institution

The Open University of Tanzania

Year dc:date.issued

2008

Author dc:creator

• Michael, Isaack

• 900 History, geography, (& biography)

Language dc:language

en