Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

Competitiveness environment
Competitiveness questions referred to issues that would assist businesses develop a competitive edge in the 
marketplace. Mean rank tests show that personal funds invested in businesses or required for initial investments and 
investments in equipment were higher in Arusha than in other two cities (Table 2). Businesses from Dar es Salaam 
required least of their personal funds for such expenditures. However, personal funds for working capital were most 
required in Mwanza. Dar es Salaam was a close second and Arusha third. Friends and family as a source of funding 
was most important in Dar es Salaam compared to the other two cities. Overall, Mwanza was a close third with 
regard to the importance of this funding source for investments. Banks appeared to be more important in Arusha and 
Dar es Salaam than in Mwanza. Overall it appeared that external sources of financing were used more in Arusha and 
Dar es Salaam. When respondents were asked how easily available were non-personal sources of financing, Mwanza 
consistently ranked higher than other two cities. Arusha ranked third in all three aspects – working capital, 
renovations, and investment in equipment. K-W Mean tests show that there was a significant difference between 
three cities with regard to their use of funds from ‘other lending sources’ for working capital. Dar es Salaam was 
ranked higher than both other cities, followed by Arusha, and Mwanza was a close third. Even though Arusha 
appeared to be mostly using personal funds for investments, banks were still more important there than in the other 
two cities. Clearly, it seemed that external sources for financing were used more often in Dar es Salaam and Arusha 
than in Mwanza. However, respondents in Mwanza believed that this source could be available freely if they used it. 
Other sources of funding also were more freely available in Dar es Salaam and Arusha than in Mwanza. Mean rank 
tests showed that quality of high use operating equipment was ranked highest in Mwanza than other cities. Where 
significant, K-W Median tests were supportive of these findings. With regards to technology as a differentiating 
factor, access to internet was ranked highest in Mwanza. Similarly, assistance in the creation of websites also was 
ranked highest in Mwanza. Respondents from Arusha ranked these items second and those from Dar es Salaam 
ranked them third. Importance of accounting training was ranked highest in Mwanza, second in Dar es Salaam, and 
third in Arusha. This also was supported by the K-W Median tests. Furthermore, the median tests revealed similar 
perceptions regarding importance of financial management training. K-W Median tests suggested that respondents’ 
perceived access to technology training for employees was most available in Arusha and least so in Dar es Salaam. 
Respondents from Arusha and Mwanza ranked quality and availability of equipment and services low compared to 
those from Dar es Salaam. At least in Arusha this may again have been because of higher demand and therefore 
higher usage pressures. On the other hand it is possible that technology training was of a lesser quality in Mwanza.
DISCUSSIONS 
It was clear that there were differences in factors impacting economic impact capability and performance of 
small businesses between the three cities. These differences were larger in the case of Mwanza compared to those in 

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