Authors :
Matari, Davis Festo
Volume/Issue :
Volume 9 - 2024, Issue 4 - April
Google Scholar :
https://tinyurl.com/3vpw66we
Scribd :
https://tinyurl.com/4pumhs72
DOI :
https://doi.org/10.38124/ijisrt/IJISRT24APR812
Abstract :
The development of SMEs worldwide is
dependent upon a favourable business situation.
However, SMEs in Tanzania confront a number of
obstacles that prevent them from growing, including a
lack of funding, inadequate market accessibility, a lack
of entrepreneurial expertise and skills, bureaucracy, lack
of business training, lack of good infrastructure, a lack
of collateral, low production, unfavourable regulations,
corruption, the motivation of the business owners,
limited access to information, inadequate raw materials
and other related factors. The significance of the study is
to review on the issues preventing Tanzanian SMEs
from developing. The SMEs, businesses have been
demanded as the backbone for the growth of economic in
almost all the developing countries including Tanzania.
In Tanzania it has contributed almost 30% of the
national GDP, and almost 20-30% of the total labour
force, thus 3-4 million people employed. Therefore the
paper has addressed some factors internal, external and
other related factors as reviewed that act as the setbacks
towards the SMEs development. The study has focused
on literature review of different articles, research and
case studies done. Mwanza region was chosen as one of
the case study because of great opportunity to SMEs in
the region, which if could be well utilized could add high
Gross Domestic Product (GDP) of the country. The
SMEs involved are such as; retail shops, bars,
restaurants, hotels, playing stations, decoction centres,
stationeries, etc Tanzania To achieve the intended
objective, the researcher developed research question
that was aimed at assessing the factors affecting
performance and development of SMEs, contributions
and solutions to SMEs. Data were collected from
literature review of paper and cited by the author
concerning Tanzania.
The finding showed that most of the SMEs fails to
develop due to; failure to access financial support, lack
of business skills, poor technology used due to lack of
awareness, lack of enough government support, high
taxes imposed , failure to comply with government
regulations, sudden change in climatic conditions and
government rules. The study concluded by suggesting
and further recommended on the better strategies that
SMEs could implement with the government support
like; government should always work and collaborate
with SMEs in all areas by implementing favourable
business policies, financial institutions should impose
affordable and easy regulation to access loan that
supports the SMES operations. Also the SMEs owners
and employees should be given enough skills to help
them perform better and copy with the daily change in
technology advancement to assure effective and
efficiency performance of the SMEs for their future
sustainability in Tanzania.
Keywords :
Small and Medium Enterprises (SMEs), Negative Factors, Development, Tanzania, Mwanza Region.
The development of SMEs worldwide is
dependent upon a favourable business situation.
However, SMEs in Tanzania confront a number of
obstacles that prevent them from growing, including a
lack of funding, inadequate market accessibility, a lack
of entrepreneurial expertise and skills, bureaucracy, lack
of business training, lack of good infrastructure, a lack
of collateral, low production, unfavourable regulations,
corruption, the motivation of the business owners,
limited access to information, inadequate raw materials
and other related factors. The significance of the study is
to review on the issues preventing Tanzanian SMEs
from developing. The SMEs, businesses have been
demanded as the backbone for the growth of economic in
almost all the developing countries including Tanzania.
In Tanzania it has contributed almost 30% of the
national GDP, and almost 20-30% of the total labour
force, thus 3-4 million people employed. Therefore the
paper has addressed some factors internal, external and
other related factors as reviewed that act as the setbacks
towards the SMEs development. The study has focused
on literature review of different articles, research and
case studies done. Mwanza region was chosen as one of
the case study because of great opportunity to SMEs in
the region, which if could be well utilized could add high
Gross Domestic Product (GDP) of the country. The
SMEs involved are such as; retail shops, bars,
restaurants, hotels, playing stations, decoction centres,
stationeries, etc Tanzania To achieve the intended
objective, the researcher developed research question
that was aimed at assessing the factors affecting
performance and development of SMEs, contributions
and solutions to SMEs. Data were collected from
literature review of paper and cited by the author
concerning Tanzania.
The finding showed that most of the SMEs fails to
develop due to; failure to access financial support, lack
of business skills, poor technology used due to lack of
awareness, lack of enough government support, high
taxes imposed , failure to comply with government
regulations, sudden change in climatic conditions and
government rules. The study concluded by suggesting
and further recommended on the better strategies that
SMEs could implement with the government support
like; government should always work and collaborate
with SMEs in all areas by implementing favourable
business policies, financial institutions should impose
affordable and easy regulation to access loan that
supports the SMES operations. Also the SMEs owners
and employees should be given enough skills to help
them perform better and copy with the daily change in
technology advancement to assure effective and
efficiency performance of the SMEs for their future
sustainability in Tanzania.
Keywords :
Small and Medium Enterprises (SMEs), Negative Factors, Development, Tanzania, Mwanza Region.
