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Micro small enterprises (MSEs) face a lot of challenges in the running and growing their
business. They need innovative strategies to mitigate those challengers if they are to achieve
their organizational goals. The purpose of this research was to examine the effectiveness of
institutional interventions and support structures in curbing challenges affecting the growth of
MSEs in Tanzanian – case of retail trade businesses in Nyamagana district. The study was
guided by four specific objectives. (i) to identify challenges MSEs in retail trade face while
conducting their business in Nyamagana District, (ii) to identify the institutional interventions
and support structures offered in the operation of the MSEs; (iii) to assess the resultant impacts
(effectiveness) of the institutional interventions and support structures on operations of MSEs
and (iv) to identify strategies to enhance effectiveness of institutional interventions and
support structures to the operations of MSEs
The study surveyed 100 retail trade owners/operators (MSEs) using self administered
questionnaires and interviewed 13 officials from institutional and support structures, retail
trade associations and private service providers. The data from questionnaire was analyses
using descriptive statistics with the aid SPSS.
The study revealed that MSEs (retail trade businesses) face a number of challenges including
limited access to affordable credit (finance), limited entrepreneurial education, lack of access
to markers beyond the local areas, high government taxes/charges inability to access market
information of the buyers and sellers, limited linkages and business networking and lastly
lengthy business registration and licensing procedures. The study further found that a good
number of institutional interventions and support structures have been available to MSEs in
Nyamagana district to alleviate those challenges but most of them were ineffective in their role
to alleviate challenges that MSEs encounter in growing their businesses.
The study identified several strategies to enhance institutional intervention and support
structures such as government in collaboration with commercial band and microfinance
institution developing innovative finance scheme/programs, make use of private sector
providers develop and hands-on training programs on entrepreneurship, management and
technical skills and reduction tax rates or provide a grace period for start ups and remove
requirement to rental l premises, The study recommended to the government to regularly
inform the MSEs of the potential and existing support institutions and the Ministry of Small
business development to embark on aggressive campaign to promote MSEs to youth and
women and other disadvantaged groups including highlighting support institutions and services
that are available. |
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