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Small and Medium enterprises (SMEs) contribute significantly in Tanzania’s economic growth, job creation and poverty alleviation. The general objective of this study was to assess the factors affecting SMEs growth in Tanzania among selected SMEs in Dar es Salaam. The study determined the internal and external factors hindering growth of SMEs; the study also identified ways for the SMEs to overcome the constraint of firm growth. The study collected primary data using interview guide questions and questionnaires. Documentary reviews were obtained through books, journal, magazine, published and unpublished dissertations, and research papers. Quantitative data were analyzed through Excel and data were presented through tables.
The findings from the study showed that lack of enough capital is the greatest factor which affects growth of microfinance institutions and food sector. The evidence from food processing industry indicates that poor technology is one among the internal challenges affecting growth of food industry. The evidence from microfinance sector shows that competition from other financial institutions is one among the critical challenges affecting growth of microfinance institutions. In food sector the findings showed that that the presence of many regulatory bodies such as TRA, TBS, TFDA, and OSHA affect growth of food industry sector.
The study recommended that it is important for the policy makers, the government, SMEs owners and other important stakeholders to conduct regular training on how the SMEs should run their business. Further the managers of the firm should be provided with education on tax laws and compliance. Also the government, policy makers and other stakeholders through BRELA and other authorities should reduce bureaucratic procedures on business registration. The government should provide material support towards growth of the SMEs business. |
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