The effectiveness of government policies in the enhancement of small and medium enterprises (smes) in Tanzania: A Case of SMEs in Dar es Salaam

The main objective of this study was to assess the effectiveness of government policies in the enhancement of Small and Medium Enterprises (SMEs) in Tanzania. The researcher was looking at the constraints of SMEs operators which are caused by unsupportive policies. The survey was done and involved a sample of eighty (80) small business operators randomly selected from four localities of which a total of 67 respondents equally to (84%) were responded. The four SMEs operators selected for the study were: Buguruni, Karume, City Centre (Posta), and Kisutu were conveniently sampled. The sample was from entrepreneurs who are engaged in varieties of small businesses.Methodologically, the researcher used questionnaire followed by an in depth interview so as to generate basic knowledge and clarity of relevant issues during data collection. Data analysis was exploratory one. Also statistical data presentation was applied. The qualitative method with the aid of Statistical Package for Social Science (SPSS) was used in interpreting and tabulation of data. Responses from different SMEs stakeholders needed to be recorded, analysed, interpreted and explained qualitatively and sometimes with the aid of tables for more clarifications. To ensure effective collection of data, few pre-questionnaires were distributed to some SMEs operators at Machinga complex to see whether there was any ambiguity on questions and correct them where necessary.The study found that SMEs have little knowledge and awareness on SMEs enhancement policy and were not actively involved in planning and policy formulation process. The findings also identified other challenges that limit the effectiveness of the policy including: low level of education among SME Operators, low involvement among women since the nature and environment do not suit them. The sector is mostly dominated by young people who fit it as their best alternative occupation. The study recommends to the government that there is a need for SMEs enhancement policy addresses and ensures more weight is given to capacity building; create awareness and knowledge on SMEs development issues and fully involving SME operators in plans and policy formulation process, implementations and evaluation (down-top approach).The government especially the ruling party leaders should formulate their party policies to deal with issues like that of Machinga Complex and provide continuous support to SMEs sector in the same way as it does to large sectors. This exercise should be sustainable and not only during election campaigns.