Assessment of the contribution of business development services providers to the growth of micro and small enterprises in Tanzania

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University of Dar es Salaam
The study attempted to assess the contribution of Business Development Services Providers to the grown of MSEs in Tanzania. The specific objectives of the study were, to determine the extent to which financial capacity for Business Development Services Providers (BDSP) enhance MSEs growth, analysis of the extent to which BDSP’s information system contribute to the growth of MSEs, the examination of the extent to which adequacy of equipment and facilities possessed by BDSP enhance MSE growth and the last objective was the analysis of the extent to which human resources in BDSP impact MSE growth.The study was conducted in Dar es Salaam and was qualitative in nature where 20 respondents were interviewed. Findings of the study revealed that the BDSP do not have financial capacity to support most of their day to day operations. It was also found that most of the institutions had good information system only that they needed to improve their management information system to enable them track the performance of MSEs. In terms of equipment and facilities, most of the equipments and supporting facilities used by the selected Business Development Service Providers were found to be obsolete and insufficient. With regards to the human resources, most of BDSP were experiencing difficulty in motivating and retaining staff due to inadequate incentive packages. Staff development was reported as a need for all interviewed institutions. Due to the low capacity of BDSP it was found that their contribution to MSEs growth is very minimal.This study recommends that BDSP should be supported by being offered fiscal incentives. It is proposed that the resources used by the BDSP could be relieved of taxation, at least, partially to help them acquire sufficient resources. The study also proposes the establishment of referral and credit bureaus to facilitate information availability to both the MSEs and their BDSP.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HD2346.T34T45 )
New business enterprises, Small business, Tanzania
Temba, D.(2014)Assessment of the contribution of business development services providers to the growth of micro and small enterprises in Tanzania,Master dissertation, University of Dar es Salaam. Dar es Salaam.