Trend analysis of financial management practices on business performance: a comparative study of church and non-church businesses in Tanzania

Abstract

Church and Non-Church businesses lack adequate financial management strategies which has been an impediment for survival and growth. This paper aims at making a comparative analysis on the performance of Church and Non-Church business in Tanzania. Specifically, the paper assessed how financial management affects performance and the extent to which Gross profit margin; Return on Assets and Return on Equity affect performance. Mixed research methods were employed using a case study design and 305 respondents were selected whereby 303nresponded correctly. Random sampling approach was applied to identify the participants of this paper. Resource Based View and Institutional theories were applied. The findings indicated that about 50% of the respondents showed there is weakness in internal control of both businesses especially in stock control. Comparing GPM, ROA, and ROE among the two businesses studied, Non-Church business revealed highest profitability hence better performance. This paper recommends the organisations to establish proper financial management and control systems. Church and Non-Church investors should be informed of the performance standard of their business so as to come up with better decisions.