Influence of Levels of Income on Micro and Small Business Operators’ Participation in Social Security Fund in Moshi Municipality
Kyolo Said Kalla1, Amembah A. Lamu Amos2
1Kyolo Said Kalla, Department of Economics and Business Studies, Mwenge Catholic University, 1226 Moshi, Kilimanjaro, Tanzania.
2Amembah A. Lamu Amos, Department of Economics and Business Studies, Mwenge Catholic University, 1226 Moshi, Kilimanjaro, Tanzania.
Manuscript received on 21 August 2023 | Revised Manuscript received on 04 October 2023 | Manuscript Accepted on 15 November 2023 | Manuscript published on 30 November 2023 | PP: 36-43 | Volume-3 Issue-2, November 2023 | Retrieval Number: 100.1/ijef.B2060103223 | DOI : 10.54105/ijef.B2060.113223
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© The Authors. Published by Lattice Science Publication (LSP). This is an open-access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: This research was intended to assess the influence of income levels on micro and small business operators’ participation in the social security fund (SSF) in Moshi Municipality, Tanzania. This study was guided by the Social Protection Theory (SPT), which describes how Social Security Funds provide benefits to both individuals and households to mitigate losses of earnings caused by sickness, maternity, employment injury, invalidity, old age, or death. This research employed a concurrent mixedmethods design. The target population for the study consisted of business operators in Moshi Municipality, totalling 6,884. A sample size of 378 respondents was obtained using the Yamane (1964) formula, which employed both stratified random sampling and purposive Sampling. A structured questionnaire was administered as the primary data collection tool, and Key informant Interviews were conducted to gather additional qualitative data. Validity was ensured through discussions with experts regarding the instrument’s design and content. The reliability of the instruments was assessed using a Cronbach’s Alpha coefficient of 0.76. Ethical considerations were adhered to in conducting this study. Descriptive statistics and content analysis were used for quantitative and qualitative data, respectively. The study revealed that the level of income affects the way small or micro business operators perceive the value of social security funds in Moshi Municipality. This study recommends that social security funds establish a minimum income threshold for participation to ensure that micro and small business operators with low incomes are eligible to participate in the social security funds of the Moshi Municipal Council.
Keywords: Social Security, Income levels, Small and Micro Business Operators, Social Security Fund Participation and Social Protection Theory.
Scope of the Article: Financing Business and Accounting