Corruption in the Procurement Process and the Performance of Small and Medium Enterprises: A Case Study of Two Selected Business Enterprises in Monduli Division Arusha District in Tanzania
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Date
2012-02
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Kampala International University, bachelors degree in Supplies And Procurement Management
Abstract
This research on "Corruption and the Performance of Small and Medium Scale
Enterprises" was carried out in TANCEED and Shoprite in Monduli, Tanzania purposely
to; find out the role of procurement on the performance small and medium enterprises; to
find out the challenges of procurement and causes of corruption; and to suggest possible
solutions to the challenges experienced in procurement. To figure out the problem,
literature was reviewed on the main variables of the study to enrich field responses. Both
qualitative and quantitative research designs were relied upon, whereby questionnaires
and interviews were used on a sample of 30 respondents drawn from the audit,
procurement and accounts departments.
It was established that procurement plays a role of protecting against loss, promoting an
effective supply environment, enhancing growth of business, promoting on going training
for efficiency, promoting market potentials, and bridging market linkages. The study
further revealed that challenges of procurement include low ability to establish strong
connections, unsupportive bidding structures, tight foreign competition, strict government
procedures, and unreliable statistical information. The study also suggested that for
procurement to effectively promote the performance of small and medium enterprises
there is a need for a mutual enforcement of procurement rules, government support,
increased information access and punishing unethical behavior.
The study concluded that, procurement as a process ought to be a transparent process if
corrupt practices are to be countered and ethical practices need to be observed to
eliminate and wipe out practices of corruption that prevent advancement of SMES in the
procurement business.
The study recommends; creating clear policy guidelines; joint formulation of sustainable
practices; building stakeholders through promoting transparency; comprehensive effort in
assessment of a procurement; collaboration to develop risk taking abilities and a smooth
implementation of capacity development.
Description
A Research Report Submitted to the School of Business and Management in Partial Fulfillment of the Requirements for the Award of Bachelors Degree in Supplies and Procurement of Kampala International University
Keywords
Corruption, Procurement Process, Small and Medium Enterprises, Arusha District