An Investigation Of The Factors That Hinder The Growth And Survival Of Small And Micro Enterprises (Smes) In Tanzania: The Case Of Tanga City

ABSTRACT

This study investigated the factors that hinder the growth and survival of small and micro

enterprises (SMEs) in Tanzania; with Tanga City SMEs as a case study. This study

focused on three issues. These include the investigation of the major factors constraining

the growth and survival of (SMEs), exploration of the efforts made by the government to

deal with problems facing (SMEs) and an assessment of solutions to the problems.

The sample size was 180 respondents. The study used primary and secondary data. Data

were collected through questionnaires, interview and documentary review. Data were

processed and analyzed using Statistical Package for Social Science (SPSS) version 16.0.

This study identified major factors constraining the growth and survival of SMEs which

include of lack of adequate capital, high rent costs for business premises, inadequate

business skills, lack of a good market, high business competition, inflation effect and

hard conditions for securing loans from financial institutions. The study found out that

the government efforts has been making some efforts in supporting SMEs growth and

survival. These include providing business skills to some business owners, creating a

conducive environment for carrying out business and controlling inflation.

The study also identified measures which should be implemented to support the growth

and survival of SMEs. These include provision of appropriate business skills, creation of

more conducive environment and provision of better loan conditions.

The study recommends that the various stakeholders in the country should play their part

in enhancing the growth and survival of SMEs.

The study also recommends that SME business owners themselves should be creative and

pro active in running their businesses.