A Dissertation Submitted on Partial Fulfillment of the Requirements Award of the Degree of Masters of Science in Accounting and Finance (MSc) of Mzumbe University
The small and medium sized firms play very vital role in the development of any nation and no one country can complete its growth stages without small and medium sized enterprises. Hence, the focus of this thesis was the assessment of factors limiting SMEs growth in Zanzibar west district. The research model was focus on SMEs internal factors, government initiatives and financial support factors. There are numbers of factors hindering their growth; external factors such as, access to finance, tax and tariff, SMEs policy of Zanzibar and internal factors such as, Lack of experience in the business, Lack of a proper business plan, Poor managerial capability, Lack of proper record keeping i.e. accounting records, Inadequate education and training (capacity development), and Lack of professional advice.
The research methodology used in data collection was survey study design in which questionnaires and interview guide as the main tools for the data collection were distributed across west district of Zanzibar. Simple random sampling was most used to obtain the required sample across the district. Both primary and secondary data type was used to obtain the required information. Primary data collected from the questionnaires were summarized, coded and a descriptive analysis of the data was conducted. Qualitative methods of data analysis were being used in analyzing the data collected. The methods used included descriptive analysis, frequencies and percentages to facilitate description of the characteristics of the sample.
Findings of this study provide useful information for SMEs, financial institutions, and government of Zanzibar. The findings of the research have important implications for the SMEs, Government and Banking sector in Zanzibar. As the government targets alleviation of poverty in the countryside in four-year. Zanzibar Strategy for Growth and Reduction of Poverty (ZSGRP) known as Mkakati wa Kukuza Uchumi na Kupunguza Umasikini Zanzibar (MKUZA) in its Kiswahili acronym is the second generation of national development framework to implement Vision 2020.