The influence of financial monitoring on performance of small and medium enterprises :

Abstract

The study examined the influence of financial monitoring on the performance of SMEs in Tanzania. The study was guided by resource based and constructive learning theory. Descriptive survey research design and mixed research approached were used in this study. Data were collected from a sample of 204 SMEs using structured questionnaire and interviews. Descriptive and regression analysis was done on quantitative data while content analysis was done on qualitative data. Findings indicated that there were some challenges among respondents regarding financial monitoring since majority of business owners had inadequate financial knowledge. However, the study found that the performance of SMEs was realized through increase of sales volume, increase of profit, and increase of number of customers. The study recommended that Financial Institutions, the Ministry responsible and other stakeholders to equip SMEs with adequate financial skills in order to boost the performance of their business. Moreover, the study recommended that the Ministry responsible should design SME policies by identifying financial monitoring features which lead to desirable outcomes in SMEs performance