Challenges and prospects of micro, small and medium enterprises growth in tanzania

This study explored the challenges and prospects of Micro, Small and Medium Enterprises, SMEs’ growth in Tanzania. The study used a descriptive design to determine the prospects and challenges on SME’s development and growth in Ilala District. The study comprised of a sample of 60 respondents from the selected population. Primary and secondary data were employed; Data were analysed using both qualitative and quantitative techniques, Statistical package (SPSS) were used to analyse data. The main objective was to determine challenges and prospects of the SME’s growth in Tanzania and the findings of the study revealed that there are internal and external factors as well as prospect affecting SMEs growth. Internal factors were: fear of loss of autonomy, difficulties in fitting together personal and the firm’s goals, lack of managerial or marketing skills, inability to meet challenges, lack of personal goals and credibility in the market. The external factors were difficulties in obtaining finance decrease in demand, stiff competition, unfriendly regulatory environment, and inability to obtaining skilled workforce. Prospects for growth accompanied with SMEs need for firm survival, increasing market opportunities, need for personal achievement and improvement of social status. All were tested to know the extent to which they affect the SME’s growth: all factors to the high percent fall in positive result that they both affect to the large extent. The study recommends that SMEs should operate their business focusing on growth by overcoming the internal factors, external factors as well as prospects that affect SMEs growth, this can be done SMEs’ themselves to use the available opportunities’ and on the other hand stakeholders, mainly the government should create favourable environment for the SMEs growth.