Influence of Financial Attitude on Investment Decisions among Small and Medium-Sized Enterprises in Dodoma

This study examines the influence of financial attitude on investment decision making among small and medium investors in Dodoma, Tanzania. Guided by the Theory of Planned Behavior. Despite the growing importance of SMEs in economic development, limited empirical evidence exists on how financial attitudes affect investment decisions in emerging economies such as Tanzania. A quantitative research approach grounded in positivist philosophy was adopted, using a cross sectional design. The accessible population consisted of 400 investors operating in Majengo and Machinga Complex markets in Dodoma Municipality. A sample of 200 respondents was selected using simple random sampling, of which 189 valid questionnaires were returned, representing a 94.5 percent response rate. Data were collected using structured questionnaires with five point Likert scale items. Financial attitude and investment decision making were each measured using five items. Data analysis involved descriptive statistics and multiple regression analysis. The findings reveal a very strong positive relationship between financial attitude and investment decisions. Financial attitude significantly predicts investment decision making, explaining 76.5 percent of the variation in investment behavior. The regression model was statistically significant, confirming that positive financial attitudes are associated with higher quality investment decisions. The study concludes that financial attitude is a critical determinant of investment decision making among SMEs in Dodoma, supporting the Theory of Planned Behavior. It recommends that policy makers and SME support institutions design targeted financial training programs that strengthen positive financial attitudes, promote long term investment orientation, and enhance confidence in financial decision making to improve SME investment outcomes.