Factors determining performance of SME’S in Tanzania: the case of Ilala District in Dar-es-salaam

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University of Dar Es Salaam
The general objective of this study was to find out the factors determining performance of SMEs in Tanzania. The study was conducted in Ilala district in Dar-es-salaam region. The study used descriptive research design. This study employed simple random sampling and purposive sampling to collect data from 100 business people, government officials and microfinance officials using interviews and questionnaires. The data was analyzed descriptively and presented through figures, tables and percentages. Quantitative data were collected through questionnaires which were processed using the Statistical Package for Social Science (SPSS). Generally, the findings indicate that internal related factors, external related factors and resource related factors affect SME’s performance. The findings also indicate that SMEs face a number of challenges including competition among themselves and from large firms, corruption, capital constraints, hawkers, poor security and improper record keeping. In conclusion, this study has achieved its research objectives. In this study, there are three significant determinants affecting the performance of small and medium enterprises (SMEs). The study recommends that: the government should get involved in determining the interest rate and protecting the borrowers; the policies of the MFI, as guided by the Central Bank, should be maintained with increased capacity on lending powers to make available finances for the success of small and medium sized entrepreneurs’ development; SME’s should reform unions or organizations that are active in looking for their rights and address their needs to appropriate authorities; the viii SME’s should further be encouraged to get more investment opportunities instead of only one and have an enterprise before borrowing the money to avoid using their loans to establish investments instead of expanding and diversifying the already established investments; there is also need to get trained in an area that is relevant to the business carried ; there is need to improve ways of gathering customer information for the purpose of personalized marketing and service in the context of objectives.
Available in print form, East Wilbert Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HD2346.T34K573)
Small business, Tanzania, Ilala district, Dar es Salaam
Kirama, E. F(2013)Factors determining performance of SME’S in Tanzania: the case of Ilala District in Dar-es-salaamMaster dissertation, University of Dar es Salaam, Dar es Salaam