“A study of small-scale engineering industries in Tanzania: technical and managerial perspectives”

One of the most important, yet most neglected in Tanzania industries are the small scale engineering industries. Experience from other developing countries show that small-scale engineering industries in their countries produce products such as, diesel engines, emergency power generators and so on. Unfortunately, this sector in Tanzania undertakes only certain kinds of repair works and light engineering works. This study brings out the technical problems faced by these small-scale engineering industries along with other operating problems. The primary objective of the study has been to identify various technical and managerial problems faced by the small scale engineering sector. A survey of fifteen small scale industries was made. Data on various technical aspects, such as production characteristics, quality control and standards, industrial design and development, equipment and spare parts management, requirements of skilled labour and so on, were collected. Other aspects such as, financial and marketing problems were also collected and analysed. From the data analysis, it is concluded that the small scale engineering industries lack basic knowledge in all technical and managerial aspects which lead to other problems, financial and organizational. Further, the entrepreneurs show little attention towards carrying out such technical aspects to enhance their performance. This study reveals that the small scale engineering industries focus mainly on jobbing, and hence, are very much inward looking when it comes to the development of their industries. Entrepreneurs do not have the desire to capture export markets. They also lack major driving force from the government, in technical, marketing or financial. In the dissertation some recommendations for the small engineering companies are given, which if implemented, are likely to increase the chances of performing better and their stay in the business. It is also recommended that, all the three bodies, the government, the companies and the entrepreneurs should take strong and effective measures to develop the small scale engineering sector. For better performance, the small-scale engineering industries require immediate remedial measures. If not done, the future of the small-scale engineering industry is at stake.