A Dissertation Submitted in Partial Fulfillment of the Requirements for the
Degree in Business Administration and Corporate Management (MBA-CM) of
Mzumbe University
The governments of Tanzania have undertaken several initiatives and measures to
register business still there are some challenges to both entrepreneurs and government
that slow down the process. Thus, this research intended to evaluate the challenges
which an entrepreneur facing in registering a business, the case of Kibaha Municipal.
The study specifically aimed to determine the awareness of SMEs about business
registration, to explore the challenges facing entrepreneurs when they want to register
their business and to determine the obstacles that hinder the government towards
formalization of registering entrepreneurs. The research employed a descriptive
research design with both quantitative and qualitative methods. In addition, the
purposive sampling technique was employed to a sample size of 96 respondents.
Moreover, data and information collected were analyzed descriptively and presented
in graphs, and tables. Findings show that complicated regulation, corruption, high
taxes, financial challenge, and unawareness of registration, were the chief challenges
facing entrepreneurs in registering their businesses. Furthermore, the findings show
that insufficient workforces, poor government policy, poor government support, and
administrative barriers were the main obstacles that hinder the government in
formalization of business. The study concludes that the registration of business is a
vital process for formalizing the business to achieve the expected benefits to both
SMEs and the government. The formalization of the business provides room for the
entrepreneurs to access loans from the financial institutions as well as expands their
businesses. However, to achieve this formalization the barriers of registering from
both SMEs and government should be eliminated. The research recommends and
indorses this the government have to engage in providing education to SMEs on the
importance of formalizing their business. Moreover, the government had better lessen
the amount of taxes to the business to allow many SMEs to register their businesses.