The effects of small scale enterprises on poverty reduction in Tanzania: a case of Dodoma municipality.

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University of Dar es Salaam
This study on the effects of small scale enterprises on poverty reduction was carried out at Madukani ward in Dodoma Municipality. It focuses on the business status of small scale enterprises, impact of small scale enterprises on the various dimensions of poverty, and the challenges facing small scale enterprises in reducing poverty. The research used a cross section research design. A sample of 125 respondents was selected for the study. Data were analyzed using descriptive statistics. Primary data were collected from the respondents using structured questionnaires, key informants interview and focus group discussions. Secondary data were obtained through documentary review. Data processing and analysis was done through Statistical Packages for Social Sciences (SPSS) computer program, specifically IBM SPSS Statistics 20 and content analysis was used to analyse the qualitative data. The study found that the money made from small scale business contributes to improve the standard of living of the owner of the business or poverty reduction, even though the income obtained from small scale business is not enough to cater for both expenditure and savings. However, the findings suggest an increased purchasing power of small scale business owners in Dodoma Municipality thereby reducing poverty. On other hand, most of small scale business owners were reported not to submit the sales report in time to TRA and the Municipal council office for tax estimation. This has been causing business owners to incur tax penalties which erode their business profit. The study concludes that small scale business is a source of livelihood as it provides income for the unskilled, semiskilled and the socially marginalized in Dodoma Municipality. Small scale enterprise owners in Dodoma Municipality have the ability to meet social and emergence demands, accumulate capital, stimulate growth of micro-enterprises, business expansion, income diversification, reduced incidence of poverty and improved livelihood standards. The study recommends that there should be government support on the business sector regarding policies and laws, easy access of loans with low interest rates, realistic income tax estimations, and infrastructure improvement. There should be a regular provision of education and training to business owners by TRA officers on any changes in tax policy and by-laws from the Dodoma Municipal Council. Dodoma Municipality should rely on dynamism, resourcefulness and risk taking of small scale enterprises to trigger and sustain the process of economic growth. The findings of this study concurs with the stipulations of the financial /capital theory and the venture opportunity theory by exploring the strategies to acquire business start-up capital and how small enterprises scale can identify and utilize the available business opportunities.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HG4027.7.T34M832)
Small business finance, Small scale, Poverty, Reduction, Dodoma municipality, Tanzania
Mwakipuba, S. J. (2018). The effects of small scale enterprises on poverty reduction in Tanzania: a case of Dodoma municipality. Master dissertation, University of Dar es Salaam.