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SMEs have a crucial role to play because of their potential contributions not only to employment creation, but also to the improvement of income distribution, poverty alleviation, rural, social and economic development, and the development of entrepreneurship. Despite that there is a vast export potential for Tanzanian SMEs to developed countries; still the impact of trade liberalization towards SMEs development is not experienced adequately. The study assessed the impact of trade liberalization towards SMEs development in Morogoro Municipality. A case study research design was used in this study. The sample size of 84 respondents selected randomly (i.e. SMEs owners, business consultants and loan officers) was involved. Data collected were analysed descriptively by using SPSS computer software version 16. The results revealed that 75% of the respondents reported the availability of difficulties in procuring raw materials for their products from various institutions due to lower capital and viable marketing strategies, 80% reported the lack of information technology which would enable them access informations relevant for their business undertakings and lack of qualified human resources to innovatively utilize their knowledge and skills for the better running of business. Moreover, 82% of the respondents reported the absence of social network among local SMEs as with its presence, social network becomes an opportunity and a means for entrepreneurs to reduce risks and capital because a social network has a significant relationship with business adaptability. However, 78% were in opinion to convince and force inefficient domestic firms to try to improve their productivity in order to enable their products compete with others while maintaining the required international standards. Local SMEs still have weak marketing and distribution capacity as they lack qualified human resources and are vulnerable to external shocks due to global competition which is beyond their control. The researcher argues for calling holistic local SMEs support through the creation of enabling environment while building a foundation for the future productivity and growth for them. |
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