Influence of Financial Management Capabilities on Semi-Formal Financial Accessibility among Incubated Small and Medium Entrepreneurs in Tanzania

Abstract

Financial management capabilities are expected to positively influence financial accessibility
among entrepreneurs. This article examines the influence of financial management
capabilities among incubated entrepreneurs on their access to semi-formal finance. Financial
management capabilities were measured by financial decision-making, analysis of financial
information, and financial planning capabilities. Relevant information was collected from
117 Tanzanian incubated entrepreneurs. Data was analysed using the SPSS Version 20, and
multiple regression analysis to test the impact of financial decision-making, financial
information analysis, and financial planning capabilities on the access to semi-formal
finance. Findings suggest that analysis of financial information capabilities positively
influences the accessibility of semi-formal finance. However, financial decision-making and
planning capabilities do not influence the accessibility of semi-formal finance. The findings
suggest that policymakers and other stakeholders should focus on building and improving
capabilities to analyse financial information among incubated small and medium
entrepreneurs to increase their accessibility to semi-formal finance.