Browsing by Author "ngaga, Khalifa Shabani"

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    Assessment of the causes of small business failures in Tanzania: the case of Temeke and Kinondoni Municipals
    (University of Dar es Salaam, 2010) ngaga, Khalifa Shabani
    The role of Small Business is recognized as one of the major contributor in the growth of the country’s economy like Tanzania and therefore, poverty alleviation. The SMS sector serves as a ‘nursery’ and a proven training ground for ‘higher level’ entrepreneurship and innovation. The objective of the study was assessment of critical factors to small Business failures in Tanzania, the case of Temeke and Kinondoni Municipals. Data were collected from respondents by means Of administering 60 (sixty) structured questionnaire. Data analysis use both qualitative and quantitative methods to analysis the data, model and hypotheses testing. The research found that the causes of small business failure are multidimensional and diverse. They include both internal and external factors to the business which hinder its hasty growth and therefore reduce the weight of its potential contribution to the national economy, and inhibit the economic empowerment of entrepreneurs. From the findings of the study, the most critical factors to small business factors are access to finance, poor health, and access to technology, lack of management skills, poor association, corruption, and property rights. Other factors were found to be contributing to small failure though in lesser weight. This research concluded that; Small business funding is primarily from non-loan sources. These included personal saving, friends, relatives, SACCOS and informal savings. These included personal saving credit societies known as “mchezo wa upatu”. It was also noted that banks shunned loaning small business owners because of high risks. This study recommended on the need for financial institutions to create the possibility of extending guarantee arrangements to include coverage for long-term loans. The needs for SME database that stores all information about the sector and the needs for SMEs authority with the mandate to oversee all the activities of the sector and develop sustainable and strategic plans that will develop the sector toa better future.