A Dissertation Submitted to the Faculty of Social Science in Partial Fulfillment of the Requirements for Award of the Degree of Master of Science in Economics of Mzumbe University
The study attempted to examine performance of Small and Medium Enterprises (SMEs) in Shinyanga municipality. The aim of the study was to provide the knowledge to the people on how to start and manage Small and Medium Enterprises (SMEs) and be aware with the factors affecting performance of Small and Medium Enterprises (SMEs). This would help them to manage their business sustainably. The factors tested were: demographic characteristics (age, sex, and education level of SMEs owners), business characteristics (capital structure and age of SMEs), institutional characteristics (business information and financial accessibility) and marketing strategy as the intermediate variable.
The study was conducted in Shinyanga municipality covering Small and Medium Enterprises (SMEs) operating within the geographical area. The study used the cross sectional study design in which data of 189 SMEs owners, and employee was collected only once. Both descriptive and empirical methods were applied during the study. The regression results show that, the significant factors which affect small and medium enterprises (SMEs) performance were: demographic factors (age and education level of SMEs owners), business characteristics (capital structure) and institution characteristics (access to finance and business information). On the other hand demographic characteristics (sex of respondent) and business characteristics (age of SMEs) are insignificantly contribute to the Small and Medium Enterprises (SMEs) performance.
This study recommends for policy makers to make sure that education is given to the SMEs‟ owners and employees by providing appropriate business and entrepreneurial knowledge and skills which will encourage them to start and manage business successful. There is also, a need for the government to make sure that, businessmen and women are enabled to have access to loans (credits) with few conditions from banks and other financial intermediaries for expanding their businesses. Moreover soft loans should be provided to those who want to start new businesses and encourage women to engage in Small and Medium Enterprises (SMEs) activities.