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This study examines the factors that affecting participation of Small and Medium
Enterprises (SMEs) in export markets, a case study of clothing and food processing.
More specifically, the study examined the influence of four aspects, namely,
domestic competition pressure, Government support, management skills and attitude
on foreign markets and availability of domestic network on local SMEs to
participate in export market. To achieve these objectives, 73 owners, managers,
supervisors and employee of SMEs were involved in the study. Structured
questionnaires used to collect primary data. The Statistical Package for Social
Sciences (SPSS) descriptive method used for this analysis. Each variable found to be
effective as a factor affecting participation of local SMEs in export market after
done analysis of data collected from the field.
Overall study findings revealed that, Because of domestic competition among firms
locally they opt for new market outside the country, new technology is one of the
factor lead to quality and quantity unit of production to fulfill export market,
Government offers several export support to SMEs in terms of credit guarantee, low
interest loans and export promotions. However, most SMEs are not aware of the
credit guarantee schemes offered by the Government.
Furthermore, the Tanzania SMEs policy of 2002 emphasizes more on the poverty
reduction in terms of domestic concentration of SMEs rather than export market of
SMEs. Likewise, Local SMEs to participate in export market must be able to
associate with large Companies and use networking as a strategy to participate on
export markets.
In conclusion, the study recommends that Government should raise awareness to
SMEs through trainings and SMEs to use networking and associate with large
Companies, To give training (Capacity building) to SME’s owner regarding
international markets and product quality, To offer cheap loan to employee with
affordable interest rate and conditions. |
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