An assessment of the contribution of business information in empowering small business groups in Tanzania; a case of SMEs in Dar es Salaam region

The objective of this study was to assess the contribution of information in empowering SME groups in Tanzania. Dar es Salaam region was selected because it is the centre of business and has the highest numbers of SMEs. Data were collected by using a combination of techniques, namely document review methods and questionnaires with open and closed questions. Two sets of questionnaire were used on SMEs and information providers from institutions that have the responsibility to disseminate information to this kind of business group. The findings of the study show that, performance of SMEs is affected by accessibility to business information and there is noticeable success in their operation. The findings also show that small and medium enterprises business groups are dominated by people with secondary level of education, and there is positive sign of growth. Furthermore, findings revealed that SME owners start business at family level with their own capital therefore most of them face financial problems as they grow. Due to the level of education and capital constraints this would imply the need for financial technical and administrative assistance. In order to enhance SMEs quickly, the following recommendations were put forward: continued training to SMEs is needed so that they keep pace with the changes in technology and market demand, assisting small and medium enterprises to produce quality products so that they can access markets even outside Tanzania and East Africa. SMEs should network so that they can share business information. Stakeholders should be there only to assist SMEs growth and not to benefit themselves under the umbrella of SMEs. It is further recommended that the government should be a watchdog to all institutions that support SMEs.