Firm specific factors affecting small and medium food processing enterprises’ market access in Tanzania

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University of Dar es Salaam
The main objective of this study was to examine the firms' specific factors which influence small and medium food processing enterprises' market access in Tanzania. Specifically, the study determined the extent to which information and communication technology applied by the firms affected their market access; determined the extent to which owner-managers demographic characteristics influenced enterprises' market access; and determined the influence of age of the firms toward market access. Descriptive research design and survey approach were used to collect primary data from 80 sampled owners -managers of small and medium food processing enterprises in the four selected regions in Tanzania. The sample was obtained through random and purposive sampling approaches whereby respondents were visited at their working premises and requested to fill in the questionnaires. The collected data were descriptively and inferentially analyzed using Statistical Package for Social Sciences version 20. Binary logistic regression and Chi-square (x2) were used to test the research hypotheses. The findings reveal that ICT applied by the firms and age of the firms have significant positive relationship with the enterprises' market access. Education and experience of owner-managers have no significant influence on the enterprises' market access. Through globalization, small and medium food processing enterprises have advantages to easily access the international markets. It is only the decision of these enterprises to adapt and effectively use information and communication technology for quickly process information and integrate key stakeholders to accelerate market access. The study recommends that MSMEs should commit resources on the adoption and use of ICT taking synergic advantage of private sector organizations to develop group website, ICT facilities and experts. However, the enterprises should sustain their businesses to create trust and increase ability to access markets abroad. In addition, the study recommends that the Government should establish a policy to support the MSMEs through tax reductions on the purchase and use of technologies which opens the door to international markets. The study suggested that further studies should focus on the effects of social media and mobile technology on MSMEs market access. Furthermore, the effects of the Tanzania regulatory framework on MSMEs market access would require a distinct research.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HD2346.T34D46)
Small business, business enterprices, Farm produce, Marketing, Business enterprises, International trade
Deodati, B. (2017) Firm specific factors affecting small and medium food processing enterprises’ market access in Tanzania. Master dissertation, University of Dar es Salaam. Dar es Salaam.