The Influence of Saving Behaviour on the Growth of Micro and Small Enterprises in the Tanzania Retail Sector: A Case of Mwanza Central Market

This study examined the influence of saving behaviour on the growth of micro and small enterprises in Tanzania, focusing on the influence of saving frequency, saving motives and saving methods on the growth. The study is guided by the Life Cycle Hypothesis, which explains saving as a means of meeting future financial needs and strengthening economic stability. A quantitative research approach and descriptive survey design were adopted. Data were collected from 201 micro and small enterprise operators using structured questionnaires and analysed using descriptive statistics, Pearson correlation analysis and multiple linear regression analysis. The findings revealed that saving frequency, saving motives and saving methods had positive and statistically significant influences on the growth of micro and small enterprises. Saving frequency had the strongest influence on enterprise growth, indicating that regular saving enables entrepreneurs to accumulate financial resources that can support business operations and expansion. The findings further suggest that clearly defined saving motives and appropriate saving methods contribute to improved financial stability and enterprise growth. The study concludes that saving behaviour is an important determinant of the growth of micro and small enterprises. The study recommends that micro and small enterprise operators strengthen saving discipline, establish clear saving objectives and adopt appropriate saving mechanisms. Financial institutions and policymakers should also improve access to affordable saving facilities and strengthen financial literacy programmes to support sustainable growth of micro and small enterprises