Assessment of critical barriers to the growth of small and medium enterprises in Tanzania: a case study of Ilala Municipality

The general objective of the study was to Assessment of Critical Barriers to the Growth of SME’s in Tanzania. In achieving this, the following were specific objectives: examine business environment in which SME’s are operating, identify barriers that hinder the growth of SME’s and to determine the solutions for the growth of SME’s. Data was collected from business owners through questionnaires and interview. Major findings revealed that there is un favorable business environment characterized by high taxes rates, bureaucracy on licensing and registration of business, low support from the government, corruption, poor business infrastructure, lack of suitable business premises, while external barriers for growth of SME’s are limited access to long term loan, unfavorable laws and regulations, competition, lack of cooperation, and internal barrier for the growth of SME’s are lack of technical and business management skills, lack of motivation to growth, lack of skilled employees and lack vision, target and objective of the business are among the critical barriers to the growth of SME’s in Tanzania. From research finding and conclusion, the following are recommended to help SME’s growth. Improvement on Business Environment by developing and strengthening regulatory and administrative environments to reduce bureaucracy, tax rates and corruption, to facilitate Access to long term loan, Strengthen business infrastructure, Provision of incentives for private institution conducting trainings of technical and business management skills to SME’s,