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This study assessed the effect of outside direct venture (FDI) on development of little
and medium undertakings (SMEs) in Dar es Salaam city. FDI isn't 100% well-disposed
for neighbourhood firms and businesses in rising economies, because of the way that
the appearance of outside firms presents uncomfortable and here and there out of line
rivalry, in item showcases as well as in labor and capital markets. Besides, global
enterprises (MNCs) may utilize their bartering capacity to get benefits and exceptions
from governments not reached out to nearby firms, and therefore due to this made it
important to look upon the impact of FDIs on growth of SMEs so as to identify what
is really going in the market.
Questionnaires were used to collect data from 11 respondents at PRISLO DESIGNS
company. The data were collected from workers within the company including the
owner of the business. Both qualitative and quantitative data were gathered and
analysed by means of frequency analysis respectively in each finding. The findings
revealed that FDI has both positive and negative impact on growth of SMEs in Dar es
Salaam city. Whereby these impacts include managerial knowledge transfer, technical
knowledge transfer, generation of new entrepreneurial opportunities, advanced stages
of monetary growth and human capital triggered by FDI crowd out local investment,
reduction in market share owned by SMEs, increased technological gap affecting
SMEs growth etc.
Therefore, findings revealed that SMEs in the country need support from the
Tanzanian government so as to create favourable business environment so as to help
them compete with FDIs in the market. There is a need for advancing technological
capacity of the country, creating environment for easy access of loan to non-collateral
owners, need for export-promotion policies implementation in order SMEs to take
significant role in the national economic development, government negotiators ought
not give up to understanding that would result to destruction of our neighborhood
enterprises while profiting MNCs rather should call for equivalent open doors for our
own privately created merchandise. |
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