A Dissertation Submitted in Partial Fulfillment of the Requirements for the Award
of the Degree of Masters of Business Administration in Corporate Management
(MBA – CM) of Mzumbe University Dar es Salaam Campus College
Small Business Entrepreneurship has been seen as a hub in generating income for
the majority of urban dwellers with no formal paid employment. In Tanzania, entry
into small business entrepreneurship is usually not seen as a problem. One can start
small business at any time and in any place.
However, the development of this informal sector has been profoundly
characterized by two parallel phenomena which are perhaps contradictory in
character. One is the increasing politicization effort encouraging people to engage
in Small and Medium Entrepreneurship (SME).
The second is the parallel increase in events suggesting prevalence of crime and
bureaucratic hurdles which affect SME and counter reaction from the small traders.
While the second can be characterized as due to the increasing repressive action by
city authority over vendors, the counter reaction behavior of itinerant and small
traders toward city authority is also evident in most urban areas.
Generally, the sector is characterized by constant tension and feuds between small
traders and urban authorities.
Drawing on research findings, the present paper challenges the possibility of
reducing poverty in Tanzania using the strategy of developing the small business
entrepreneurship under the situation where there is an increasing level of petty
crime and bureaucratic hurdles. It is argued and indeed, concluded that if the
present intricate and controversial situation surrounding SME and small business is
not reversed, if not brought to rest, the development of SME is on slippery slope.
The option suggested to tame the conundrum includes, developing discourse
portfolio between small traders and bureaucratic authority and authorities
formulating policies that can promote development of small business
entrepreneurship.