Enhancing capacity building for growth of small scale enterprises : a case of micro-credit beneficiaries in Kinondoni municipality, Dar es Salaam region

Small Scale Enterprises (SSEs) play a fundamental role in economic growth of different countries, This study sought to investigate the process of capacity building among micro credit beneficiaries for growth of small scale enterprises. The study was conducted in Kinondoni Municipality. Both qualitative and quantitative approaches were employed using a sample of sixty small business owners who had received credits from National Microfinance Bank (NMB) and Promotion of Rural Initiative and Development Enterprise (PRIDE). The main research instruments used were questionnaire and interview. Both qualitative and quantitative data collected were analyzed using simple descriptive statistical methods such as frequencies, percentages and cross tabulations. The findings showed that capacity building services available from the agencies did not reach most SSE operators in Kinondoni. It was further revealed that majority of SSE owners in the study area lacked relevant information regarding business development services providers and the type of services provided. Hence, they did not understand the various Business Development Services (BDS) providers available in the country and could not benefit from their services. It was also found that in spite of receiving credit, the amount received had not assisted them to expand their businesses. This was attributed to small amount of the loan received as well as lack of access to BDS. Lack of capacity building services among small business holders made them to lack important information regarding their various capacity building needs for growth of their businesses. On the basis of these findings, it was recommended that BDS providers should assess the actual needs of SSEs in order to make sure that the services offered are those needed by SSEs for their growth. Furthermore, small business owners should team up and form Business Clusters so as to have a collective voice.