Analysis of how small scale business enterprises are run and their relationship to required entrepreneurship skills and qualities: a case of local communities in Temeke municipality Dar es Salaam region

The objective of this qualitative research was to develop a better understanding of how small business are run and the importance of entrepreneurship skills and qualities, and assessing their impact in carrying out business activities of small scale enterprises in Temeke municipality. The issue or problem has been that many of these small-scale traders tend to invade various areas and do businesses which do look sustainable. The research method used was qualitative. It was done in different parts of the municipality, namely Temeke, Mbagala, Keko Yombo and Tandika by a way of in-depth interviews and direct observation. The results of the forty-four interviewed small-scale enterprises owners indicated that most of them did not find entrepreneurship skills and qualities to be important in carrying out their business activities. It was also noted that the impact of not having or utilizing required entrepreneurship skills resulted into failure of many small-scale enterprises. A mere reason of survival was proved to be behind why the businesses were established. No business continuity could be predicted as a result of these negative findings. The data was collected and analyzed through direct observation and in-depth interviews. The research came out with new ideas following these negative findings. All parties: small-scale entrepreneurs, government as well other interested stakeholders have to adopt new ways to approach this problem. Small-scale business owners must understand that they are responsible to get necessary training and skills in running their businesses for them to see success coming their way. On the part of government, it should design a mechanism through which, by way of subsidizing the costs of training for the small-scale business owners. As for the part of other interested parties in microfinance activities (financing firms and NGOs) they should look for the way they could be of help to the small-scale entrepreneurs. Since they are firms in business, they should have a feeling of corporate responsibility by assisting the very sector they are earning huge profits from by way of interests for the borrowed monies by streamlining their financing processes and reviewing interests rates. Self-motivation for many small-scale entrepreneurs is too minimal and this attitude has to change for them to succeed. Policy issues have to be looked at as well. SME Development Policy (2003) contains a number of issues. They include, for example, improved legal and regulatory framework, entrepreneurship and business training, improved marketing services, enhance access to finance and environmental issues. Despite these issues being included in the policy document, they do not seem to have been able to tackle many problems facing small-scale businesses. They may need to be reviewed periodically after every few years to see how effective they are.