Assesment of Business Formalization on Economic Growth: A Case Study of Mkurabita in Ilemela Municipal Council, Mwanza Region-Tanzania
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SAUT
Abstract
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The study makes assessment of business formalization on economic growth in Ilemela
Municipal Council. The specific objectives of the study were to measure the performance of
MKURABITA since its inception, to examine the extent to which MKURABITA has
improved fair competition for small business in the economic growth. Finally, to assess the
extent to which MKURABITA simplify registration procedures for movable properties. The
study adopted a case study research design. The target population was 154 small business
operators in Ilemela Municipal Council. Primary data was collected using questionnaires,
interview and observation. Secondary data was collected using documentary review such as
published materials, relevant documents pertaining to sales records, books, pamphlets,
newspapers, reports and other information from various business web sites. The data were
analyzed quantitatively using Statistical Package for Social Sciences (SPSS) Computer
Software.
The factors that limit the business formalization according to research findings are an
unreformed system of registration and regulations, lack of private sector organizations
competent to participate in a dialogue with the government on behalf of informal and small
scale enterprises, and a general failure to recognize formalization to be an exchange
transaction on terms needing the agreement of both parties. The study concludes that the
business formalization on economic growth is low. The study recommends the government to
reform the system of legislation and regulations to enable those who are capable to register
their business willingly and private sector organization has to be given additional room to
participate in a dialogue with government on behalf of informal and a small-scale enterprise
complains
Keywords
Economic Growth