Effects Of Management Skills On Performance Of Smes In Tanzania; A Case Of Micro And Small Enterprises In Dodoma Municipality

ABSTRACT

This study attempts to assess the effects of management skills on performance of

SMEs in Tanzania. The study concentrates on Micro and Small enterprises in

Dodoma Municipality where descriptive research design was adopted. A total

number of 60 respondents constituted the sample. The sample understudy was Micro

and Small enterprises owners/managers. The respondents were interviewed by using

structured questionnaire. The analysis was carried out by using descriptive statistics,

gross margin, correlation and linear regression.

The results indicate that management skills in terms of marketing, financial, human

relation and other business skills are of paramount important on performance of

SMEs in Tanzania. The findings further reveal that both Micro and Small

owners/managers who attended business training or have high level of education

have better business performance unlike those who haven’t attended any business

training or have lower level of education.

Lastly the study recommended government to design training programs for micro

and small businesses that reflects the nature and type of businesses undertaken in the

country at an affordable price. Moreover, owners/managers of Micro and Small

enterprises were argued to attend business training/seminars/workshops that will

enable them to acquire marketing, financial, human relation and other related

business skills so as to cope with business turbulence and attain sustainable

development.

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