Tanzanian sme’s Internationalization, opportunities and challenges in handcraft sector.

The study examines the SMEs internationalization, opportunities and challenges in handcraft sector. The study focus on the support provided by the government and other business support organizations (BSOs) as well as challenges they face in going international despite the opportunities available in the sector. The study employed positivist approach. It entailed the use of primary and secondary data whereby 40 SMEs were given the questionnaires and previous studies were used to support the study. Basing on the findings, Government and private sector through its business support organizations (BSO) has a very big role to play in internationalization of SMEs. Major roles are financial support, trainings, promotion, bureaucracy reduction/ elimination and provision of reliable market information. The findings also show that although government provides support to SMEs internationalization, most of the support provided does not reach the targeted SMEs. Moreover, some of the Tanzanian’s SMEs are not aware of the kind of support provided. The study therefore recommends that, for government, policy makers, SMEs, BSO, donors and other stakeholders whose most important aim is to develop small and medium business enterprises in developing countries especially Tanzania to make and implement strategies that will make them reach the targeted SMEs that will lead to more SMEs internationalization. Moreover, financial support to SMEs should be given priority as most of the organizations do not provide financial support while limited finance is the main constraint for SMEs to internationalize in Tanzania. Distribution of reliable business information and networking is potential for SMEs internationalization, therefore government and private sector through its BSOs should take it more seriously for SMEs internationalization.