Determinants of successful provision of business development services (bds) in the Tanzania smes market

The study aimed at finding out the determinants of successful provision of useful Business Development Services (BDS) in Tanzania SMEs market. To achieve this goal the study specifically categorized its findings into specific objectives based on the demand factors, supply factors and government assistance towards the successful and usefulness of BDS in Tanzania SMEs market. The researcher designed and used a survey methodology. After sampling process, a sample of 100 respondents were taken and the enumerator administered a total of 100 questionnaires of which 50 were administered to Business Development Services Providers (BDSPs) and 50 questionnaires were administered to Small and Medium Enterprises (SMEs) whereby the selected enumeration areas (EAs) were all in Dar es Salaam City District Municipals of Temeke, Kinondoni and Ilala Municipals. Of the 100 questionnaires distributed, the researcher was able to collect all of 85(85%) responses of which 48 were BDSPs and 37 SMEs .The collected data were organized and summarized through statistical package for social scientists (SPSS) which convey a good overall picture and facilitates the computations of some percentages and actual analysis on the research questions. The summarized data was then analyzed through hypothesis testing using t- test. The results show that the demand driven factors, supply side factors and government assistance have great influence towards the successful and usefulness of the BDSPs in the Tanzania SMEs markets. This study concludes by establishing that, for the successful and usefulness of BDS in the Tanzania market, there must be a good combination all the three positions. The BDSPs must provide services that are of great need to the SMEs (that is Demand driven factors), and they must be creative and innovative enough to bring changes and provide solutions that will assist the growth and development of SMEs sector (that is supply side). Finally the government has its role to play on business formalization, access to finance and regulatory framework.