A Dissertation Submitted to Mzumbe University Dar es Salaam Campus in
Partial Fulfillment of the Requirement for Master Degree in Business
Administration (MBA-CM) of Mzumbe University
There is growing number of SMEs operating in Tanzania since 1990 to contribute
economy in the country. The study aims to assess the role of government in
supporting SMEs.
Generally worldwide SMEs have great contribution to the economy of their
countries. SMEs lack access to finance due to adequacy in fulfillment of Bankers
requirements and also lack knowledge and skills. Therefore government of Tanzania
knowing the significance of the SME they have the role to support alienate the gap of
access to finance and lack of knowledge and skills.
The review of related literature descries the development of SMEs, the role of SMEs
for Tanzanians economy and the role of government in creating an enabling
environment for the emergence of private sector participation in economic activities.
Data collection was obtained through questionnaire, interviews and actual
observation. These were supported with secondary data.
Both quantitative and qualitative techniques were employed to analyze the data.
The findings in this study have shown that there is no improvement in terms of an
increase in capital, marketing and outreach. The main factors which affect growth of
SMEs is due lack of training, lack of education and entrepreneurial skills.
Accordingly it was recommended that the government should ensure that all
Tanzanians posses SMEs education background by introducing the training in the
Vocational education of Tanzania (VETA) curricula.